CLA-2-76:OT:RR:NC:N1:116
Ms. Jennifer Diaz
Diaz Trade Law
12700 Biscayne Boulevard, Suite 301
North Miami, Florida 33181
RE: The tariff classification and status under the Dominican Republic-Central America-United States Free Trade Agreement (DR-CAFTA) of window shutter components
Dear Ms. Diaz:
In your letter dated March 19, 2020, on behalf of your client, Global Aluminum Distributor, LLC., you requested a ruling on the tariff classification and status under the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) of three unassembled aluminum extrusions used to manufacture window accordion shutters: Shutter Blades (Male/Female Solid Blade), Female and Male Centermate and Starters. A representative sample of a complete window shutter unit was submitted and will be returned to you as you requested.
According to your submission, aluminum ingots, aluminum scrap and magnesium ingots from South Africa, Russia, China and other non-DR-CAFTA countries are shipped to the Dominican Republic where they are melted down with aluminum scrap from the Dominican Republic and cast into aluminum alloy cylindrical billets. Next, the billets are extruded into the final products. The extrusions are either painted or anodized and then packaged for export to the United States. You state that the extrusions are made from aluminum alloy 6063 T5/T6 and will be imported separately. The extrusions are shaped specifically for this window shutter configuration.
The Shutter Blades (Male/Female Solid Blade), product number SPA 002, make up the accordion “curtain” and slide along the top and bottom track. You indicate that the blades represent 85% of the complete system.
The Female and Male Centermate, product numbers SPA 003 and 004, function as the innermost mating extrusions for each accordion curtain “stack”. Typically, these components meet in the middle of a given shutter installation and interlock in order to provide a secure closure for the complete system.
The Starters, product number SPA 005, are the outermost “end” extrusions of the accordion curtain “stack”. The function of the Starters is to secure the accordion curtain stacks to the rightmost and leftmost wall of the structure onto which the shutters are being installed. You indicate that without the Starters, the finished accordion curtain shutters cannot be installed onto a wall/structure.
The applicable subheading for the Shutter Blades, the Female and Male Centermate and the Starters will be 7610.90.0080, HTSUS, which provides for aluminum structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, balustrades, pillars and columns): aluminum plates, rods, profiles, tubes and the like, prepared for use in structures: other: other: other. 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.
You inquire whether the three products are eligible for preferential duty treatment under the Dominican Republic – Central America – United States Free Trade Agreement (DR - CAFTA).
General Note (GN) 29, HTSUS, sets forth the criteria for determining whether a good is originating under the DR-CAFTA. General Note 29(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, subject to the provisions of subdivisions (c), (d), (m) and (n) thereof, a good imported into the customs territory of the United States is eligible for treatment as an originating good under the terms of this note if— (i) the good is a good wholly obtained or produced entirely in the territory of one or more of the parties to the Agreement; (ii) the good was produced entirely in the territory of one or more of the parties to the Agreement, and— (A) each of the nonoriginating materials used in the production of the good undergoes an applicable change in tariff classification specified in subdivision (n) of this note; or (B) the good otherwise satisfies any applicable regional value content or other requirements specified in subdivision (n) of this note;
and the good satisfies all other applicable requirements of this note; or (iii) the good was produced entirely in the territory of one or more of the parties to the Agreement exclusively from originating materials.
Based on the facts provided, the subject extrusions are manufactured in the Dominican Republic from aluminum ingots, aluminum scrap and manganese from multiple countries. As such, the goods are not wholly obtained or produced entirely in the territory of one or more parties to the DR-CAFTA. Therefore, GN 29(b)(i) may be not be used to determine the origin of the finished articles and analysis must continue to GN 29(b)(ii).
In order to meet the requirements of GN 29(b)(ii)(A), the goods must be produced entirely in the territory of one or more parties to the DR-CAFTA and each of the non-originating materials used in the manufacture of the goods undergoes an applicable change in tariff classification specified in subdivision (n) of this note.
Since we have determined that the subject aluminum extrusions are classified in subheading 7610.90.0080, HTSUS, the applicable tariff shift rule for these products is set forth in GN 29(n), Chapter 76, Rule 13, which reads: A change to headings 7610 through 7613 from any other heading. The aluminum ingots are classified in heading 7601, HTSUS, the aluminum scrap is classified in heading 7602, HTSUS, and the manganese is classified in heading 8111, HTSUS. Therefore, the tariff shift has been met.
The window shutter components are produced entirely in the Dominican Republic and each of the non-originating materials used in the production of the finished extrusions meet the required tariff shift. As such, this office finds that the items qualify for preferential duty treatment under the DR-CAFTA in accordance with GN 29(b)(ii)(A) upon compliance with all applicable laws, regulations and agreements.
In your submission, you also request a country of origin determination for the subject products. Section 134.1(b) of the Customs Regulations (19 CFR 134.1(b)) provides that the "country of origin" means the country of manufacture, production or growth of any article of foreign origin entering the United States. 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 the meaning of Part 134, Customs Regulations (19 CFR Part 134). A substantial transformation occurs when articles lose their identity and become new articles having a new name, character or use. However, if the manufacturing or combining process is merely a minor one that leaves the identity of the article intact, a substantial transformation has not occurred.
Based on the information provided, it is the opinion of this office that the aluminum ingots, aluminum scrap and magnesium ingots undergo a substantial transformation in the Dominican Republic resulting in new and different products (Shutter Blades, the Female and Male Centermate and the Starters). As such, we find that the country of origin for these products for marking purposes is the Dominican Republic.
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 Angelia Amerson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division