CLA-2-84:OT:RR:NC:N1:106
Mr. Phil Kudia
Classification Manager
Expeditors Tradewin, LLC
1015 Third Avenue, 12th Floor
Seattle, WA 98104
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Airwick Freshmatic Aerosol Air Freshener Dispenser from China; Article 509
Dear Mr. Kudia:
In your letter dated February 1, 2012 you requested a ruling on the status of the Large Airwick Freshmatic Aerosol Air Freshener Dispenser from China under the NAFTA on behalf of your client Reckitt Benckiser.
The merchandise under consideration is Large Airwick Freshmatic Aerosol Air Freshener Dispenser. It is a battery operated device which is intended to have a specifically designed, replaceable canister of aerosol fragrance housed within. An integrated circuit board controls a motor and an adjustable timer is contained within a plastic housing which can be activated to release the fragrance at intervals set by the user. The aerosol fragrance is not imported with this device.
The importer Reckitt Benckiser is now changing its production process. All the internal electronic components including the circuit board, motorized gear system and timer, will continue to be manufactured in China by Zobele China. These electronics will be shipped to Zobele, Mexico who will manufacture the plastic housing and assemble the electronics into the housing before packaging and shipment to the United States. Reckitt Benckiser Inc. is now seeking a determination on the country of origin of this product under this new production equation.
The applicable tariff provision for the air freshener dispenser when imported without aerosol spray will be 8424.90.9080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders…,parts thereof : …Parts: Other: Other”. The general rate of duty will be Free.
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
(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 nonoriginating 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.
Based on the facts provided, the goods described above do not qualify for NAFTA preferential treatment because none of the requirements are met. Therefore, the Country of Origin for the Air Freshener Dispenser is China.
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 Matthew Sullivan at (646) 733-3013.
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,
Thomas J. Russo
Director
National Commodity Specialist Division