CLA-2-85:OT:RR:NC:N1:108
Mr. Steven B. Zisser
Zisser Customs Law Group
Suite 114
2297 Niels Bohr Court
San Diego, CA 92154
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a liquid crystal display (LCD) television from Mexico; Article 509
Dear Mr. Zisser:
In your letter dated February 18, 2011, on behalf of P&F USA, Inc., you requested a ruling on the status of an LCD television from Mexico under the NAFTA.
The subject merchandise, based on the submitted information, is the Philips 46-inch high-definition LCD color television, model number 46PFL3706/F7. This television, which is stated to be manufactured in Mexico from non-originating Chinese components, has the following: three HDMI inputs with EasyLink for connection to multiple high-definition sources; and a PC input allowing the television to be used as a PC monitor. Moreover, this television, which incorporates a USB port, contains the internal circuitry for reproducing video and music files stored on a USB flash memory or storage device (not included).
The merchandise consists essentially of the LCD subassembly and the main board, which are imported separately into Mexico in different shipments and at different times in noting that these parts are shipped independently based on the production needs in Mexico.
When imported into Mexico, the pre-assembled LCD subassembly consists essentially of the LCD panel, the power board, the speakers, the function knob assembly, the sensor board assembly, the LVDS cable and the wire assembly; and the stand assembly, consisting of a base and an arm, which is not pre-assembled to the LCD subassembly at the time of importation. The LCD subassembly does not contain a tuner or a main board and cannot receive or process a broadcast television signal or any other type of signal.
The main board, when imported into Mexico, is stated to contain all the television control elements, including a television tuner and all audio and video components; furthermore, the main board, which does not have a power supply or a display screen, contains all the components, excepting the deflection circuitry, enumerated in Additional U.S. Note 9 to Chapter 85, HTSUS.
In Mexico, the LCD subassembly is disassembled in such a manner to allow the main board to be incorporated into the LCD subassembly, with all the required operations being performed in assembling this merchandise. In this manner, the components are further manufactured to produce a functioning LCD television.
The applicable tariff provision for this LCD television will be 8528.72.6400, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus: Reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus: Other, color: With a flat panel screen: Incorporating video recording or reproducing apparatus: Other. The general rate of duty will be 3.9 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.
Based on the facts provided, this LCD television qualifies for NAFTA preferential treatment because it will meet the requirements of HTSUS General Note 12(b)(ii)(A). Moreover, based on the information submitted, the non-originating components will undergo the appropriate change in tariff classification, as required by HTSUS General Note 12 (t)/85.91(H), which reads: “A change to other reception apparatus for television of subheading 8528.72 from incomplete or unfinished reception apparatus for television (including assemblies for reception apparatus consisting of all the parts specified in chapter rule 3 to chapter 85 plus a power supply), not incorporating a cathode-ray tube, flat panel screen or similar display, of subheading 8528.72 or any other heading.” This LCD color television will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
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 Lisa Cariello at (646) 733-3014.
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