CLA-2-70:OT:RR:NC:N2:226
Ms. Robin R. Cowen
Roser J. Cowen Logistical Services Ltd.
4695 Towerwood Drive
Brownsville, TX 78521
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of multiple-walled insulating glass panel units containing internal metal blinds from Mexico; Article 509
Dear Ms. Cowen:
In your letter dated December 11, 2014, you requested a ruling on behalf of your client, Therma-Tru Doors, regarding the tariff classification and status under the North American Free Trade Agreement (NAFTA) of glass panel units identified as item numbers VBRSS-2264-CE and VBRFC-2036-CE.
From the information you provided, VBRSS-2264-CE and VBRFC-2036-CE consist of two clear outer layers of tempered glass containing an inner layer of metal horizontal blinds, assembled within a frame to create a sealed, insulating unit. The frame also provides handles to operate the blinds. VBRSS-2264-CE measures 22 inches wide by 64 inches high, while VBRFC-2036-CE measures 22 inches wide by 36 inches high. You state that these products are designed for installation in doors.
Item numbers VBRSS-2264-CE and VBRFC-2036-CE are comprised of different materials that are classifiable in different headings. Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs) taken in order. General Rule of Interpretation (GRI) 3(b) of the HTSUS provides, in relevant part, that composite goods which cannot be classified by reference to GRI 3(a) shall be classified as if they consisted of the material or component which gives them their essential character. The glass component provides the essential character of these items.
The applicable tariff provision for item numbers VBRSS-2264-CE and VBRFC-2036-C, will be 7008.00.0000, HTSUS, which provides for “Multiple-walled insulating units of glass.” 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/.
You have asked whether item numbers VBRSS-2264-CE and VBRFC-2036-C are eligible for treatment under the NAFTA. 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.
You have provided a list of materials used in the manufacture of these units and the countries of origin of those materials, which include the United States, Mexico, and China. Since these glass panel units include components that originate in countries other than Mexico, Canada or the United States, General Note 12(b)(i), HTSUS, does not apply. We must refer to General Note 12(b)(ii)(A), which specifies in part that merchandise will qualify as originating goods for NAFTA eligibility if each of the non-originating materials undergoes a change in tariff classification described in subdivision (t).
The finished glass panel units are classified within heading 7008, HTSUS. The rule applicable to merchandise classifiable in this heading is found in General Note 12(t)/70.2. It requires a change to headings 7003 through 7009 from any other heading outside that group. From the information you submitted, the components which originate in China have undergone the required tariff shift.
Based on the facts provided, item numbers VBRSS-2264-CE and VBRFC-2036-CE qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A) and 12(t)/70.2. The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
Regulations (19 CFR 102.11), sets forth the required hierarchy for determining whether a good is a good of a NAFTA country for the purposes of country of origin marking and determining the rate of duty and staging category applicable to an originating good as set out in Annex 302.2. Paragraph (a) of this section provides that the country of origin of a good is the country in which (1) the good is wholly obtained or produced, or (2) the good is produced exclusively from domestic materials, or (3) each foreign material incorporated into that good undergoes an applicable change in tariff classification set out in section 102.20 of the regulations.
"Foreign material" is defined in 19 CFR 102.1(e) as a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced. Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in this case because item numbers VBRSS-2264-CE and VBRFC-2036-CE are manufactured from materials originating in the United States, Mexico, and China, and therefore is neither wholly obtained or produced, nor produced exclusively from domestic materials. Since an analysis of sections 102.11(a) (1) and 102.11(a) (2) will not yield a country of origin determination, we look to section 102.11(a) (3).
Section 102.11(a)(3) provides that the country of origin is the country in which each foreign material incorporated in that good undergoes an applicable change in tariff classification as set forth in 19 CFR 102.20. Since we have determined that item numbers VBRSS-2264-CE and VBRFC-2036-CE are classified in subheading 7008.00.0000, HTSUS, the applicable tariff shift rule found in section 102.20(l) requires a change to heading 7008 from any other heading.
Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the non-originating materials undergo the applicable shift in tariff classification. Accordingly, the country of origin of item numbers VBRSS-2264-CE and VBRFC-2036-CE is Mexico.
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 Nicole Sullivan at [email protected].
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, 90 K Street, N.E. – 10th floor, Washington, DC 20229-1177.
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division