CLA-2-39:S:N:N3G:221 862222
Mr. Mitch Cankovic
Cremco Supply Ltd.
1748 Powell Street
Vancouver, B.C., Canada V5L 1H7
RE: The tariff classification of plastic slip-on couplings from
Canada.
Dear Mr. Cankovic:
In your letter dated April 4, 1991, you requested a tariff
classification ruling.
The slip-on couplings are used for joining drain, waste and
vent piping materials together. The couplings are composed of
Santoprene general purpose grade 101-87, which you refer to as a
thermoplastic rubber. Based on the specifications you included
with your request, Santoprene does not meet the requirements for
classification as a rubber product for tariff purposes, but is
considered to be a plastics material instead. The Santoprene raw
material from which the couplings are made is manufactured in the
United States.
The applicable subheading for the slip-on fittings will be
3917.40.0000, Harmonized Tariff Schedule of the United States
(HTS), which provides for tubes, pipes and hoses and fittings
therefor, of plastics...fittings. The rate of duty will be 5.3
percent ad valorem.
Goods classifiable under subheading 3917.40.0000, HTS, which
have originated in the territory of Canada, will be entitled to a
3.7 percent ad valorem rate of duty under the United States-
Canada Free Trade Agreement (FTA) upon compliance with all
applicable regulations.
In your letter you asked if the cost of the raw materials
could be deducted from the dutiable value, since the raw
materials are manufactured in the United States. The slip-on
fittings are dutiable at their full value, including the cost of
the raw materials and the cost of shipping the materials to
Canada.
You also inquired about the staged rates of duty reductions.
The rate of duty for goods of Canadian origin that are classified
in subheading 3917.40.0000, HTS, is scheduled to be reduced by 10
percent per year for ten years until the goods are free of duty.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
Sincerely,
Jean F. Maguire
Area Director
New York Seaport