CLA-2-39:S:N:N6:221 806312
Mr. Dale Martel
Trekware Developments Ltd.
1613 Passageview Drive
Campbell River, BC
Canada V9W 6L2
RE: The tariff classification and status under the North
American Free Trade Agreement (NAFTA), of "Cool Ties," "Cool
Bands" and "Cool Paks" from Canada; Article 509
Dear Mr. Martel:
In your letter dated January 9, 1995, you requested a ruling
on the classification and status under the NAFTA of cooling
articles from Canada.
The "Cool Tie" is a scarf-like item measuring approximately
38 inches in length and 2 inches in width, designed to be tied
around the neck. The "Cool Band" is a headband measuring
approximately 22 inches in circumference by 2 3/4 inches in
width. It incorporates an elastic panel and is designed to be
worn across the forehead. Both of these items are made of woven
fabric and contain crystals of polyacrylamide. When the articles
are soaked in water, the crystals absorb the liquid, expanding
many times their original size. When the tie and band are placed
on the skin, the coolness of the absorbed water and the action of
evaporation of moisture from the skin cause a cooling effect.
The "Cool Paks" are rectangular pads containing the
polyacrylamide crystals between two layers of woven fabric. The
larger pad measures approximately 10 3/4 inches by 8 1/2 inches.
The smaller measures approximately 9 1/2 inches by 4 1/4 inches.
They are designed to be used as compresses to relieve aches and
pains by cooling the affected area. The compresses may also be
warmed in a microwave oven and used to provide a heat treatment
to the area.
The applicable tariff provision for the "Cool Paks" will be
3005.90.5090, Harmonized Tariff Schedule of the United States
(HTSUSA), which provides for wadding, gauze, bandages and similar
articles...put up in forms or packings for retail sale for
medical, surgical, dental or veterinary purposes, other. This
provision is free of duty.
The applicable tariff provision for the "Cool Ties" and
"Cool Bands" will be 3926.90.9890, HTSUSA, which provides for
other articles of plastics, other. The general rate of duty will
be 5.3 percent ad valorem.
You have stated that the polymer crystals are purchased from
a supplier in the United States and the cloth material is
purchased from suppliers in both Canada and the United States.
However, you have not indicated whether these components
originate in the United States and Canada. If the materials
originate in the United States and Canada, then the "Cool Ties"
and "Cool Bands," being made entirely in the territory of Canada
using materials which themselves were originating, will satisfy
the requirements of HTSUSA General Note 12(b)(iii). The
merchandise will therefore be entitled to a 1.5 percent ad
valorem rate of duty under the NAFTA upon compliance with all
applicable laws, regulations, and agreements.
If the goods which you purchase from suppliers in the United
States and Canada originate in countries other than the United
States, Canada and Mexico, then the finished articles may still
be eligible for reduced duty under NAFTA since each of the non-
originating materials used to make the "Cool Ties" and "Cool
Bands" has satisfied the changes in tariff classification
required under the HTSUSA General Note 12(t)/39.10. In this
case, the "Cool Ties" and "Cool Bands" will also be subject to a
Regional Value Content (RVC) requirement of 60 percent under the
Transaction Value Method or 50 percent under the Net Cost Method
as required under the rule applicable to the ties and bands.
Assuming the goods are eligible for preferential treatment under
the NAFTA, the merchandise will be entitled to a 1.5 percent ad
valorem rate of duty under the NAFTA upon compliance with all
applicable laws, regulations, and agreements.
If the materials used to make the ties and bands are from a
non-originating country and you desire a ruling regarding the
Regional Value Content of your goods and their eligibility for
NAFTA preferential treatment, please send the information noted
in Section 181.93(b) of the Customs Regulations (19 CFR
181.93(b)) to the Director, Commercial Rulings Division,Headquarters, U.S. Customs Service, 1301 Constitution Ave. N.W.,
Franklin Court, Washington, D.C. 20229, along with a copy of this
letter. This information should include a breakdown showing the
country of origin and cost for each material and showing the
country of processing and cost for each of the manufacturing
steps.
This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 C.F.R. 181).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
This ruling letter is binding only as to the party to whom
it is issued and may be relied on only by that party.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport