CLA-2-59:OT:RR:NC:N3:350
Mr. Vincent Tetreault
Hardy Filtration
2405, rue Jules-Vachon
Trois-Rivieres, QC G9A5E1
Canada
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of four air filters from Canada; Article 509
Dear Mr. Tetreault:
In your letter dated September 25, 2017 you requested a ruling on the tariff classification and status under the North American Free Trade Agreement (NAFTA) for four air filters. Samples of the articles were previously provided.
FACTS:
Hardy Filtration style names Air-Pak, Maxi-Air, Pleat-Flo, and Cubair (CMST) are air filtration articles manufactured for use within specific heating, ventilation and air conditioning (HVAC) systems. The products are manufactured in Canada from originating and non-originating materials, then exported directly from Canada to the United States.
Your submission includes an “Item Description Document” for each article, describing its function and use, with details regarding the components, with origins and manufacturing information. Individual information on each item follows:
Air-Pak consists of a nonwoven filter media in a metal frame. Nonwoven fabric of U.S. origin is cut and stitched with Chinese sewing thread to form bags, which are then mounted to a “J-Hoop” aluminum frame of U.S. origin, and subsequently fastened to a metal support frame manufactured in Canada.
Maxi-Air consists of a cotton/polyester nonwoven pleated fabric produced in the U.S. which is bonded by glue to an expanded metal frame, both produced in Canada. The filter is then placed in a cardboard frame which is produced in the U.S. and sealed with a water based adhesive of Canadian origin.
Pleat-Flo consists of a polypropylene nonwoven fabric which has been pleated in a mechanical process with the addition of polypropylene hotmelt glue to add sturdiness to the filter media. Eight sections of pleated media are placed in each frame (called a V-Bank), which is produced of recycled polystyrene. Glue is applied to hold the filter media in place. All of the items used to produce this product are manufactured in the U.S. (except the self-stick label used to identify the product).
Cubair (CMST) consists of a polyester nonwoven fabric of Canadian origin, weighing 356 g/m2, to which a galvanized metal wire of unknown origin is attached by sewing, resulting in a cube-like shape. The fabric is sewn together and then attached to the frame, utilizing sewing thread of Chinese origin
All of the manufacturing operations take place in Hardy Filtration’s plant in Quebec, Canada.
ISSUE:
What is the classification and status of these filters under the North American Free Trade Agreement (NAFTA)?
CLASSIFICATION:
In your letter, you suggest classification as filtering or purifying machinery under subheading 8421.39, Harmonized Tariff Schedule of the United States (HTSUS). However, while the products at issue perform a filtering function, Note 1(e) to Section XVI indicates that the section does not include articles of textile material for technical uses of heading 5911. Previous rulings have found products of this ilk to be classified in 5911, thus precluding them from classification in heading 8421.
The applicable subheading for the products designated Air-Pak, Maxi-Air, Pleat-Flo, and Cubair (CMST) will be 5911.90.0080, HTSUS, which provides for Textile products and articles, for technical uses, specified in note 7 to this chapter: Other: Other. The general rate of duty is 3.8% 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 https://hts.usitc.gov/current.
NAFTA - LAW AND ANALYSIS:
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;
For goods classified in heading 5911, General Note 12/59.4 requires:
A change to heading 5911 from any other chapter, except from headings 5111 through 5113, 5208 through 5212, 5310 through 5311, 5407 through 5408 or 5512 through 5516.
Based on the facts provided, all of the non-originating materials undergo the required tariff shift. The goods described above qualify for NAFTA preferential treatment, because they meet the requirements of HTSUS General Note 12(b)(ii). The goods will therefore be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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 Maribeth Dunajski via email at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division