CLA-2-56:OT:RR:NC:N3:351
Ron Chiabai
Redden Marine Supply, Inc.
1411 Roeder Avenue
Bellingham, WA 98225-3216
RE: The tariff classification and status under the United States-Peru Trade Promotion Agreement Implementation Act (Peru TPAIA), of netting and knit fabrics from Peru.
Dear Mr. Chiabai:
In your letter dated June 20, 2009, you requested a ruling on the status of netting and knit fabrics from Peru under the Peru TPAIA. The same merchandise was the subject of New York classification ruling N065642, dated July 8, 2009.
You submitted four samples. You state that all will be imported in bulk bales with raw, unfinished edges. These nettings are over 30 cm in width.
Sample A is a black knotless raschel netting material, of open-work warp knit construction. It is made of 100% nylon. The twine size is 210d/12 and the mesh size is 11/16” stretched measure, with an estimated yield of 44 square feet/lb. The order configuration is bulk bales 600 meshes deep x 110 fathoms long. The intended use for the above item is commercial fishing.
Sample C is a red knotless raschel netting material, of open-work warp knit construction. It is made of 100% nylon. The twine size is 210d/180 and the mesh size is 7” stretched measure, with an estimated yield of 43 square feet/lb. The order configuration is bulk bales 100 meshes deep x 70 fathoms long. The intended use for the above item is commercial fishing.
The applicable subheading for Samples A and C knotless netting material when imported in bulk will be 6005.32.0010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for warp knit fabrics (including those made on galloon knitting machines), other than those of headings 6001 to 6004, of synthetic fibers, dyed, open-work fabrics. The general rate of duty will be 10% ad valorem.
Sample B is knotted netting constructed of braided nylon twine. The twine size is 210d/192 and the mesh size is 3¼” stretched measure. The estimated yield is 10 square feet/lb. The intended use for this netting is commercial fishing, although we assume it is not salmon gill netting.
Sample D is knotted netting constructed of braided nylon twine. The twine size is 210d/96 and the mesh size is 3½” stretched measure. The estimated yield is 24 square feet/lb. The intended uses for this netting are sports netting barriers, batting cages, and commercial fishing.
The applicable subheading for Samples B and D, imported with raw, unfinished edges, if used primarily as fish netting, will be 5608.19.1020, HTSUS, which provides for knotted netting of twine, cordage, or rope; made up of fishing nets and other made up nets, of textile materials: Of man-made textile materials: Other: Other. The general rate of duty will be 8.5% ad valorem.
You also state that Sample D will be imported in rectangular pieces of various sizes with rope borders; you submitted a picture of this. These nets are considered made up according to the terms of Explanatory Note 56.08 (2). In a telephone conversation with this office in relation to ruling N065642, you stated that these will be for sports-related uses only, for instance for baseball batting cages or fence-like barriers (behind a soccer goal) or other safety uses; none of the uses are actually game-related (as tennis nets or goal nets would be, for example).
The applicable subheading for Sample D, if used primarily as sports netting, whether imported with raw, unfinished edges or imported in rectangular pieces with rope borders, will be 5608.19.2090, HTSUS, which provides for knotted netting of twine, cordage, or rope; …other made up nets, of textile materials: Of man-made textile materials: Other: Other: Other. The general rate of duty will be 5% ad valorem.
You state that all of the above items will be manufactured in and imported directly from Peru, and that the Peruvian manufacturer obtains the yarns to produce the items from Mexico. The dye treatment is produced in Peru.
General Note 32, HTSUS, sets forth the criteria for determining whether a good is originating under the PERU TPAIA. General Note 32(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), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if—
(i) the good is a good wholly obtained or produced entirely in the territory of Peru, the United States, or both;
(ii) the good was produced entirely in the territory of Peru, the United States, or both, and—
(A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or
(B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;
and the good satisfies all other applicable requirements of this note; or
(iii) the good was produced entirely in the territory of Peru, the United States, or both, exclusively from materials described in subdivision (b)(i) or (b)(ii) of this note.
Samples A and C are classified in heading 6005. The cordage that makes up these raschel knit fabrics is classified in heading 5607. It is non-originating (from Mexico) so it must meet the terms of the tariff shift. The tariff shift for heading 6005 (General Note 32(n)/Chapter 60/3) is as follows:
A change to headings 6003 through 6006 from any other chapter, except from headings 5106 through 5113, chapter 52, headings 5307 through 5308, 5310 through 5311, 5401 through 5402, subheading 5403.20, 5403.33 through 5403.39, 5403.42 through 5403.49, headings 5404 through 5408 or chapter 55.
The knitted fabrics meet the terms of the tariff shift. Based on the facts provided, Samples A and C qualify for Peru TPAIA preferential treatment, because they will meet the requirements of HTSUS General Note 32(b)(ii)(A). The goods will therefore be entitled to a free rate of duty under the Peru TPAIA upon compliance with all applicable laws, regulations, and agreements.
Samples B and D are classified in heading 5608, HTSUS. The cordage that makes up these knotted nettings is classified in Chapter 56. It is non-originating (from Mexico) so it must meet the terms of the tariff shift. The applicable tariff shift for Chapter 56 (GN 32(n)/Chapter 56/1) is as follows:
A change to headings 5601 through 5609 from any other chapter [emphasis added], except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308, 5310 through 5311, 5401 through 5402, subheading 5403.20, 5403.33 through 5403.39, 5403.42 through 5403.49, headings 5404 through 5408 or chapter 55.
Samples B and D do not qualify for preferential treatment under the PERU TPAIA because they do not meet the applicable tariff shift.
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 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 Mitchel Bayer at (646) 733-3102.
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, U.S. Customs and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20232-1177.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division