CLA-2-63:OT:RR:NC:N3:349
Ms. Sofia Spoltore
Milgram & Company Ltd.
DBA Milgram Freight Services
400-645 Wellington
Montreal, QC H3C 0L1, Canada
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of curtains from Canada; Article 509
Dear Ms. Spoltore:
In your letter dated June 26, 2012 you requested a ruling on the status of curtains from Canada under the NAFTA.
The curtains will be made from 100 percent polyester woven fabric. A sample was not submitted. The fabric consists of a polyester staple fiber spun yarn in the warp and a polyester filament yarn in the weft. You have not supplied the relative weights of the staple and filament yarns. The staple fibers are made in Germany and shipped to the United States where they are spun into a yarn. The filament yarn is formed in Germany and shipped to the United States. The fabric is woven in the United States and shipped to Canada where it is cut and sewn to make curtains.
The applicable tariff provision for the curtains will be 6303.92.2010, Harmonized Tariff Schedule of the United States (HTSUS), which provides for curtains (including drapes) and interior blinds; curtain or bed valances: other: of synthetic fibers: other… window curtains (including drapes) and window valances. The general rate of duty will be 11.3 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
(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
As the staple fibers and the filament yarns are made in Germany the curtains do not meet the eligibility requirements of General Note 12(b)(i) or 12(b)(iii), HTSUS. Therefore, we must ascertain whether the non-originating fibers and yarns qualify for NAFTA eligibility under General Note 12(b)(ii), HTSUS. In order to qualify, the German staple fibers and filament yarns must undergo the change in tariff classification required in General Note 12(t), HTSUS. The applicable subdivision (t) rule for Chapter 63 provides the following:
3. A change to heading 6303 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6002, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.
The polyester staple fibers and filament yarns from Germany are classified within chapters 54 and 55. The curtains do not qualify for preferential treatment under the NAFTA because the non-originating fibers and yarns used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/63.3, HTSUS.
You have also asked if the curtains would be eligible for a reduced rate of duty based upon the Tariff Preference Levels (TPL). According to Section XI, HTSUS, Additional U.S. Note 4(a), up to the annual quantities specified in subdivision (c) of Note 4, goods of Chapters 52 through 55, 58, 60 and 63 “that are woven or knit in the territory of a NAFTA party from yarn produced or obtained outside the territory of one of the NAFTA parties, or knit in the territory of a NAFTA party from yarn spun in the territory of a NAFTA party from fiber produced or obtained outside the territory of one of the NAFTA parties” are eligible for the preferential rate of duty. In addition to the foreign filament yarn the woven curtains are made from staple fibers that were produced outside the territories of the NAFTA parties and are therefore not eligible for a reduced rate under the TPL.
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 John Hansen at (646) 733-3043.
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