CLA-2-48: OT: RR: NC: 4:434
Karli Strohschein
247 Candy Mountain Drive
Slate River, Ontario P7J0B6
CANADA
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of hand-addressed envelopes and original paintings from Canada
Dear Ms. Strohschein:
In your letter, dated April 4, 2018, you requested a ruling on the tariff classification and status under the North American Free Trade Agreement for hand-addressed envelopes and watercolor paintings. Additional information was received in response to an inquiry from this office.
FACTS:
The items under consideration are custom-ordered from clients in the United States and hand-executed by you, the artist, in Canada. You state that the paper envelopes are manufactured in the United States. In Canada you customize them with addresses in watercolor brush calligraphy. Your original watercolor paintings are created entirely in Canada on cotton rag paper. The finished goods are imported directly from Canada into the United States across the land border.
CLASSIFICATION:
Paper envelopes are classified in chapter 48 of the Harmonized Tariff Schedule of the United States (HTSUS), specifically in heading 4817. The envelopes at issue in this ruling request are pre-addressed. This will not affect classification. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. The ENs to heading 4817, HTSUS, state that, “These articles may be printed with addresses, names, trademarks, decorations, crests, initials, etc., merely incidental to their use as stationery.”
The applicable subheading for the addressed envelopes will be 4817.10.0000, HTSUS, which provides for “Envelopes, letter cards, plain postcards and correspondence cards, of paper or paperboard...: Envelopes.” The rate of duty will be free.
The applicable subheading for the watercolor paintings, if painted and executed entirely by hand without any photomechanical processes, and having no utilitarian value, will be 9701.10.0000, HTSUS, which provides for “Painting, drawings and pastels, executed entirely by hand, .….: Paintings, drawings and pastels.” The 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 the World Wide Web at https://hts.usitc.gov/current.
NAFTA-LAW AND ANALYSIS:
General Note 12 (b), HTSUS, sets the criteria for determining whether a good is originating under the North American Free Trade Agreement (NAFTA). General Note 12 (b) 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;
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they meet the requirements of HTSUS General Note 12 (b)(i). The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
You also indicated a desire to obtain advice on the correct form of entry that would apply to your importations. Questions regarding entry are outside the purview of this office. Please direct any entry processing questions directly to the Entry Process & Duty Refunds Branch at the following address: Gail Kan, Chief, Entry Process & Duty Refunds Branch, Office of Trade, U.S. Customs and Border Protection, 90 K Street NE– 10th Floor, Washington D.C. 20229-1177.
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 Charlene Miller at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division