CLA-2-90:OT:RR:NC:1:114

Mr. Richard T. Casey
CIBA Vision Corporation
11460 Johns Creek Parkway
Duluth, GA 30097

RE: The tariff classification and status under the United States-Singapore Free Trade Agreement (SFTA), of FOCUS DAILIES contact lenses from Singapore.

Dear Mr. Casey:

In your letter dated October 1, 2008, you requested a ruling on the status of FOCUS DAILIES contact lenses from Singapore under the SFTA. A sample of the FOCUS DAILIES contact lenses was submitted with your ruling request.

You state that the production of the FOCUS DAILIES in Singapore utilizes non originating materials. The materials consist of HMW-PVA solution, sodium chloride, disodium hydrogen phosphate dehydrate and poloxamer, which are imported from Germany. The FOCUS DAILIES contact lenses are manufactured in Singapore on a fully integrated mold process automated system. The production process is designed to produce contact lenses in high volumes while maintaining a consistent quality level. A proprietary polymer is dispensed onto the mold before they are exposed to ultra-violet (UV) light for the cross-linking process to solidify the liquid polymer. The contact lenses are removed from the molds and automatic lens inspection systems are used to inspect the manufactured contact lenses before they are packed. Defective contact lenses are disposed of. Once the contact lenses are removed from the molds, the molds are cleaned and dried before another batch of polymer is dispensed onto the molds. After inspection, the good contact lenses are placed into a primary package with saline solution being added to the primary package. A pre-cut foil is placed onto the primary package and heat sealed to contain the saline solution and the contact lens. Pre-printed foil label information is reviewed and approved against applicable regulatory standards before they are sent to Autoclaves to sterilize the contents.

The sterilized primary packages are packed into pre-printed cartons to hold the final product. Following the production in Singapore, the FOCUS DAILIES may either be shipped directly from Singapore to the United States or from Singapore to the United States through Germany, a third country. You state that some FOCUS DAILIES contact lenses will be shipped to Germany, a third country, where they clear Customs and then are stored in a warehouse before being shipped to the United Stated. While in Germany, the FOCUS DAILIES lenses do not undergo any further manufacturing or production.

The issue presented is whether the FOCUS DAILIES lenses are considered originating goods under the provision of US-SFTA rules of origin and whether the goods must remain in Customs custody if shipped outside the US-SFTA region.

General Note 25(b), HTSUS, sets forth the criteria for determining whether a good is originating under the SFTA. General Note 25(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, subject to the provisions of subdivisions (c), (d), (n) and (o) thereof, goods imported into the customs territory of the United States are eligible for treatment as originating goods of a SFTA country under the terms of this note only if they–

(i) were wholly obtained or produced entirely in the territory of Singapore or of the United States, or both;

(ii) are goods that, in their condition as imported, are enumerated in subdivision (m) of this note and imported from the territory of Singapore; or

(iii) have been transformed in the territory of Singapore or of the United States, or both, so that each nonoriginating material:

(A) undergoes an applicable change in tariff classification set out in subdivision (o) of this note as a result of production occurring entirely in the territory of Singapore or of the United States, or both; or

(B) if no change in tariff classification is required, the good otherwise satisfies the applicable requirements set forth in such subdivision (o).

Under the United States Singapore Free Trade Agreement (SFTA) there is no Customs custody requirement in a third country, in this case Germany. Also, you have stated that there is no subsequent production undertaken in Germany.

Based on the facts provided, the goods described above qualify for SFTA preferential treatment, because they will meet the tariff shift requirements of HTSUS General Note 25(b)(iii)(A), subdivision (o) 90.2. The goods will therefore be entitled to a free rate of duty under the SFTA upon compliance with all applicable laws, regulations, and agreements.

The applicable tariff provision for the FOCUS DAILIES contact lenses will be 9001.30.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for contact lenses. The general rate of duty will be 2 percent.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

This ruling letter has not addressed the Regional Value Content (RVC) of the subject goods. If you desire a ruling regarding the RVC of your goods and their eligibility for SFTA preferential treatment, provide the information noted in HTSUS General Note 25(g), to the Director, International Trade Compliance Division, Headquarters, U.S. Customs and Border Protection, Office of Regulations and Rulings, ATTN: Richard Bock, 799 9th Street N.W., Washington, D.C. 20001-4501, along with a copy of this letter.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Barbara Kiefer at (646) 733-3019.


Sincerely,

Robert B. Swierupski
Director
National Commodity Specialist Division