CLA-2-39:OT:RR:NC:N4:421
Ms. Lesleigh Senter
ZF Electronics Corporation
11200 88th Avenue
Pleasant Prairie, WI 53158
RE: The tariff classification of a silicone keyboard cover from Mexico
Dear Ms. Senter:
In your undated letter, which was received in this office on November 13, 2012, you requested a tariff classification ruling.
The sample provided with your request is identified as EZClean™ 4100 keyboard cover, part number KBCF-4100-2. The keyboard cover is an accessory designed to protect the 4100 model Cherry computer keyboard. It consists of clear silicone plastic sheeting measuring approximately 11 ¾ inches by 6 inches that is curved around the perimeter to form a cover component. The shaped cover component fits over a plastic bezel or frame. The frame snaps over the top of the keyboard to provide a smooth silicone surface that can be cleaned with most standard cleansers and disinfectant wipes.
You suggest classification as an accessory in subheading 8473.30.5100, Harmonized Tariff Schedule of the United States (HTSUS). Subheading 8473.30.5100 provides for parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of heading 8469-8472: parts and accessories of the machines of heading 8471: not incorporating a cathode ray tube: other. Although this office agrees that the keyboard cover is an accessory to the machines of heading 8471, it is excluded from classification in subheading 8473.30.5100 because the language of the heading excludes covers and the like from the provision.
The applicable subheading for the keyboard cover, part number KBCF-4100-2, will be 3926.90.9980, HTSUS, which provides for other articles of plastics, other. The general rate of duty will be 5.3 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
(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.
You state that the silicone cover component is made in Taiwan and the frame or bezel component is made in the United States. The silicone cover and bezel are shipped to a production facility in Mexico where the shaped silicone cover is assembled onto the frame. Based on the facts provided, the goods described above do not qualify for NAFTA preferential treatment because they will not meet the requirements of HTSUS General Note 12(b)(ii)(a). The keyboard cover component that is made in Taiwan and the finished keyboard cover are both classifiable in subheading 3926.90.9980. The non-originating keyboard cover component does not undergo the tariff shift specified in General Note 12(t)39.12.
You have asked whether the keyboard cover can be marked to state that the product is made in Taiwan and assembled in Mexico. The silicone cover component, which is made in Taiwan, and the frame or bezel component, which is made in the United States, are assembled together in Mexico. The completed product is packaged, labeled and shipped back to the United States.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
The country of origin marking requirements for a “good of a NAFTA country” are also determined in accordance with Annex 311 of the North American Free Trade Agreement (“NAFTA”), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.
Section 134.1(b) of the regulations, defines “country of origin” as
the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the “country of origin” within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added).
Section 134.1(j) of the regulations, provides that the “NAFTA Marking Rules” are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a “good of a NAFTA country” as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the regulations, provides that a “good of a NAFTA country” may be marked with the name of the country of origin in English, French or Spanish.
The imported keyboard covers are processed in Mexico prior to being imported into the U.S. Since Mexico is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported keyboard cover is a “good of a NAFTA country,” and thus subject to the NAFTA marking requirements.
Part 102 of the regulations sets forth the “NAFTA Marking Rules” for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations sets forth the required hierarchy for determining country of origin for marking purposes.
Paragraph (a) of this section provides that the country of origin of a good is the country in which (1) the good is wholly obtained or produced, or (2) the good is produced exclusively from domestic materials, or (3) each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 of the regulations.
"Foreign material" is defined in 19 CFR 102.1(e) as a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced. Sections 102.11(a)(1) and 102.11(a)(2) do not apply to the facts presented in this case because the keyboard cover includes a silicone cover component manufactured in Taiwan, and a frame manufactured in the United States, so the complete cover is neither wholly obtained or produced, nor produced exclusively from domestic materials. Since an analysis of sections 102.11(a)(1) and 102.11(a)(2) will not yield a country of origin determination, we look to section 102.11(a)(3). Section 102.11(a)(3) provides that the country of origin is the country in which each foreign material incorporated in that good undergoes an applicable change in tariff classification as set forth in 19 CFR 102.20. Section 102.20 requires a change to heading 3922 through 3926 from any other heading, including another heading within that group. The silicone cover component, the plastic frame and the complete keyboard cover are all classifiable in subheading 3926.90.9980. Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the non-originating components do not undergo the applicable shift in tariff classification. Accordingly, the imported keyboard cover is a good of Taiwan for marking purposes.
Part 134.43(e) regarding assembled articles states that where an article is produced as a result of an assembly operation and the country of origin of such article is determined under this chapter to be the country in which the article was finally assembled, such article may be marked, as appropriate…Assembled in (country of final assembly). In this case, the country of assembly is not the country of origin, so the product cannot be marked “Assembled in Mexico.”
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 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 Joan Mazzola at (646) 733-3023.
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, Bureau of Customs and Border Protection, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division