CLA-2-56:OT:RR:NC:TA:350
Mr. Karl F. Krueger
Radix Group Int’l, dba/DHL Global Forwarding
2660 20th Street
Port Huron, MI 48060
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of two needleloom felt materials, for use in the manufacture of belting, from Canada ; Article 509
Dear Mr. Krueger:
In your letter dated April 8, 2011, on behalf of Texel, Quebec, Canada, you requested a ruling on the status of two needleloom felt materials from Canada under the NAFTA.
Two representative samples were submitted which were identified as styles FIN 22894 and FIN 22886, respectively.
The first item, style FIN 22894, according to your correspondence, consists of three distinct layers. The two outer layers are needleloom felt materials produced in Canada from polyester man-made (staple) fibers of U.S. origin. The center or middle layer is a woven fabric of polyester man-made fibers which has been produced in India. You indicate that these three layers have been laminated together by a mechanical entanglement via the use of barbed needles. No other means of bonding were mentioned, nor were any indicated from our bench tests. You indicate that the finished product weighs 635 g/m² and will be imported in material lengths, i.e., roll goods to be later trimmed to length and width according to the needs of the ultimate end users.
Additionally, after importation into the United States, you indicate that it is necessary to impregnate the material with elastomers which will encapsulate the fibers to provide full protection to the felt during its application cycle. This will provide durability, fatigue recovery and improve tensile modules to the finished belts which will ultimately be produced.
The second item, style FIN 22886, according to your correspondence, is similar in construction and composition to the first item, except that it consists of five distinct layers. The two outer layers (1st and 5th) as well as the 3rd or middle layer are needleloom felt materials produced in Canada from polyester man-made fibers (staple) of U.S. origin. The second and fourth layers are composed of woven fabrics composed of 100 percent polyester man-made fibers which have been produced in India. You indicate that these five layers have been laminated together by a mechanical entanglement via the use of barbed needles. No other means of bonding were mentioned, nor were any indicated from our bench tests. You state that the finished product weighs 3,301 g/m².
The applicable tariff provision for the two materials will be 5602.10.1000 Harmonized Tariff Schedule of the United States (HTSUS), which provides for needleloom felt and stitch-bonded fiber fabrics, laminated fabrics. The duty rate is 12 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
As these two materials are have not been wholly produced in the territory of NAFTA, we must, in this regard, turn to General Note 12(t)/56, HTS, to determine if the tariff shift requirement has been met.
Specifically, GN 12(t)/56 reads as follows: Chapter 56:
A change to heading 5602 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, or chapters 54 through 55. Since the woven fabrics which have been incorporated into both materials discussed above, have been produced in India and fall in either Chapter 54 or Chapter 55, the tariff shift requirement has not been met, and therefore, no reduction in duty can be made under the terms of NAFTA.
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 Deborah Walsh at (646) 733-3044.
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