Mr. Michael E. Roll
Katten Muchin & Zavis
525 West Monroe Street
Chicago, Illinois 60661-3693
RE: The tariff classification and country of origin determination under the North American Free Trade Agreement (NAFTA),of cassette deck mechanisms from Mexico.
Dear Mr. Roll:
In your letter dated March 23, 1999, on behalf of Nissei Sangyo of America Ltd., you requested a tariff classification ruling.
The issues concern whether cassette deck mechanisms are eligible for preferential duty treatment under the North American Free Trade Agreement (NAFTA).
The cassette deck mechanisms, samples provided, are denoted as models CDS-53 and CD5-801. Also provided was a complete bill of materials and a video tape illustrating the assembly process. These cassette deck mechanisms are designed for use in motor vehicles and are fully assembled in Mexico from parts both originating and non-originating. These mechanisms are comprised of all necessary operating capabilities with the exception of a command function and independent power supply. Pursuant to Headquarters Ruling 085399 and NY Ruling 801332 cassette deck mechanisms, lacking only the above mentioned characteristics were held, per GRI 2(a), to possess the essential character of a cassette player.
The applicable tariff provision for the cassette deck mechanisms, models CDS-53 and CD5-801 will be 8519.93.4000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Turntables, record players, cassette players and other sound reproducing apparatus, not incorporating a sound recording device: other sound reproducing apparatus: other, cassette type: designed exclusively for motor vehicle installation. The general rate of duty will be 3.7 percent ad valorem.
Each of the non-originating materials used to make the cassette deck mechanisms has satisfied the changes in Tariff classification required under HTSUSA General Note 12(t)/72 which reads; a change to subheadings 8519.10 through 8519.99 from any other subheading, including another subheading within that group, except from tariff items 8522.90.25, 8522.90.45 or 8522.90.65. Based upon the information furnished none of the parts from a non-originating country will be classified in the above excepted provisions. The cassette deck mechanisms will be entitled to a free rate of duty under NAFTA upon compliance with all applicable laws, regulations and agreements. The country of origin determination is made pursuant to 19 C.F.R. §102.11 which specifies: A. The country of origin of a good is the country which: 1. The good is wholly obtained or produced. 2. The good is produced exclusively from domestic materials or 3. Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in C.F.R. 102.20 and satisfies any other applicable requirements of these rules are satisfied. 19 C.F.R. §102.20 specifies that classification under HTS provision 8519.92 through 8519.93 calls for a change to subheading 8519.92 through 8519.93 from any other subheading outside that group. The tariff shift is met because all of the materials used to make the cassette deck mechanisms are classified in subheadings other than 8519.93.
The country of origin of the cassette deck mechanisms, models CDS-53 and CD5-801 is Mexico based upon meeting the tariff shift specified in C.F.R. 102.20
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 Michael Contino at 212-637-7039.
Robert B. Swierupski