CLA-2-84:OT:RR:NC:N1:106
Mr. Hector Lopez Monroy
LM Brokerage and Logistics, Inc
1777 N. Frank Reed Rd.
#4
Nogales, AZ 85621
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Drum Unit Cartridges (DUC) units from the United States and abroad; Article 509
Dear Mr. Monroy:
In your letter dated September 17, 2010 you requested a ruling on the status of refurbished DUC units from the United States and abroad under the NAFTA.
DUC’s, or toner cartridges, are used to contain and deliver toner when used in a printer, in this case one which is capable of being connected to an automatic data processing machine (ADP). You state in your request that the used DUC’s are collected from various U.S. service centers in the United States and Europe. The cartridges are sent to a center in Colorado where they are consolidated. From Colorado, they are packed and shipped to Mexico for further disassembly and repair. In Mexico these DUC’s are completely disassembled; parts that are not reusable are discarded. You state that the drums, blades and BCR’s are automatically discarded and replaced with new components.
The applicable tariff provision for the Drum Unit Cartridges (DUC) units will be 8443.99.2050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Printing machinery used for printing…other printers…and…parts…: Parts…: Other: Parts…of printers: Parts of printer units…: Other”. The general rate of duty will be Free.
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 nonoriginating 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 information provided, the DUC’s where you can substantiate the claim of U.S. origin, through a process of disassembly in the United States, will be afforded NAFTA preferential treatment under the requirements of HTSUS General Note 12(b)(ii)(a).
Your inquiry does not provide enough information for us to give a ruling on the NAFTA status of the DUC’s received from Europe. Your request for a NAFTA preferential treatment should include information on the disassembly processes which take place in Europe before the DUC’s arrive in the United States and are comingled. When this information is available, you may wish to consider resubmission of your request on the European DUC’s. We are returning any related samples, exhibits, etc. If you decide to resubmit your request, please include all of the material that we have returned to you.
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 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, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177, along with a copy of this letter.
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 Mark Palasek at (646) 733-3013.
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, Headquarters, U.S. Customs and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division