CLA-2-85: RR:NC:1:108 E84537
Mr. Renato Ramos
Moondance Entertainment Inc.
1131a Leslie St., Suite 555
Canada M3C 3L8
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a RADIOCAP from Canada, Article 509
Dear Mr. Ramos:
In your letter dated June 21, 1999 you requested a ruling on the status of a RADIOCAP from Canada under the NAFTA.
The item in question is denoted as the “RADIOCAP”. It is a 100% cotton baseball cap with an AM/FM radio and earphones. It is to be sold to various companies as a promotional item. The user can both wear the cap while listening to a radio broadcast.
The final product, “RADIOCAP”, is fully assembled in Canada from non-originating components as follows:
- The hat is embroided with an appropriate logo.
- The radio is secured in the fitted pocket and the jack is installed.
- The earphone wires are altered to fit the hat.
- The earphone wires are placed under the interior sweatband and routed through the side holes of the hat.
- The interior sweatband is permanently installed.
Headquarters Ruling 087161 classified a similar item the “Sports Radio Baseball Cap”, per GRI-3c for it was determined that no single component denoted an essential character. After a review of the submitted information in the instant request this office has come to the same conclusion.
The applicable tariff provision for the RADIOCAP will be 8527.19.5035, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Reception apparatus for radiotelephony, radiotelegraphy or radiobroadcasting, whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock: Other: Other … Other: FM only or AM/FM only. The general rate of duty will be 3 percent ad valorem.
Each of the non-originating materials used to make the RADIOCAP has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/82 which reads; a change to subheadings 8527.12 through 8527.39 from any other subheading, including another subheading within that group, except from tariff items 8529.90.01, 8529.90.03, 8529.90.06, 8529.90.09, 8529.90.13, 8529.90.16, 8529.90.19, 8529.90.22, or 8529.90.24.
Based upon the information furnished none of the components from a non-originating country will be classified in the above exempted provisions. The “RADIOCAP” 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
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 8527.19 through 8527.90 calls for a change to subheading 8527.19 through 8527.90 from any other subheading, including another subheading within that group. The tariff shift is met.
The country of origin of the “RADIOCAP” is Canada 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