CLA-2-39:OT:RR:NC:SP:221
Mr. Jorge Torres
Interlink Trade Services
10601 S. Jackson Rd.
Suite 200
Pharr, TX 78577
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a mattress shell from Mexico; Article 509
Dear Mr. Torres:
In your letter dated November 8, 2008, which was received in this office on December 16, 2008, on behalf of Kolcraft, you requested a ruling on the status of a mattress shell from Mexico under the NAFTA.
A sample was provided with your letter. The mattress shell is made of polyvinyl chloride (PVC) plastic sheeting backed with nonwoven polyester fabric reinforcement. The mattress shell is manufactured from vinyl sheet from China that has been exported to the United States where it is printed and laminated to nonwoven polyester fabric that originates in either China or the United States. The printed and laminated sheet is exported from the United States to Mexico where it is cut and sewn to create the mattress shell. After importation to the United States, the mattress shell will be fitted with foam and springs and sewn to form a complete mattress.
The applicable tariff provision for the mattress shell will be 3926.90.9980, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of plastics, other. The general rate of duty will be 5.3 percent ad valorem.
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/.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if--
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--
(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or
(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the non-originating materials falling under provisions for “parts” and used in the production of such goods does not undergo a change in tariff classification because--
(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or
(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment as long as the Regional Value Requirements are met. Even though the vinyl sheet does not originate in Canada, Mexico and/or the United States, and even though the nonwoven polyester backing may not originate in Canada, Mexico and/or the United States, the mattress shell meets the requirements of HTSUS General Note 12(b)(ii)(A) because each of the non-originating or potentially non-originating materials used in the production of the mattress cover undergoes the change in tariff classification set out in General Note subdivision 12(t)(39.10), provided there is a Regional Value Content (RVC) of not less than 60 percent where the transaction value method is used or 50 percent where the net cost method is used. The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements, including the RVC requirements specified in General Note 12(t)(39.10).
This ruling letter has not addressed the RVC of the subject goods. If you desire a ruling regarding the RVC of your goods and their eligibility for NAFTA preferential treatment, provide the information noted in Section 181.93(b) of the Customs Regulations (19 CFR 181.93(b)), to U.S. Customs and Border Protection, Office of International Trade, Regulations and Rulings Mint Annex, 799 9th Street N.W., Washington, D.C. 20001-4501, along with a copy of this letter. That information should include the country of origin of the nonwoven polyester as well as the country of origin of all precursor materials used to produce the nonwoven polyester. You should also include a breakdown showing the cost of each component, the country of each processing step and the cost of each processing step in the manufacture of the mattress shell.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).
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 Joan Mazzola at (646) 733-3023.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division