CLA-2-83:OT:RR:NC:N1:121
Ramon Patlan
JORI Logistics LLC
15355 Vantage Pkwy W.
Houston, TX 77032
RE: The tariff classification and status under the United States-Mexico-Canada Trade Agreement (USMCA) of artwork created in Canada on aluminum alloy sheet from China
Dear Mr. Patlan:
In your letter dated August 12, 2021, you requested a ruling on classification and the eligibility of the USMCA on behalf of GJ Hall Enterprises 2010 Inc. This office reviewed documentation that included pictures of examples of the completed artwork.
The merchandise under consideration is artwork created in Canada on sheets of aluminum alloy imported from China. The aluminum sheets are manufactured in China with a high-quality casting process with an alloy grade of 5052 H32 under the ASTM B209 standard. They are used as the medium to create artwork, drawings, and paintings. The end user is buying a piece of art that can be hung on walls or can be used as decoration on bathrooms, walls, and any interior section of a house, building or office. The artwork is created by Canadian airbrush artist Kevin Wilson, whose art has been displayed at art galleries in Edmonton, Alberta and Lahaina, Hawaii. The artist hand grinds, hand paints, modifies, cuts, and/or paints on the aluminum sheet to create the final artwork.
There are two different types of artworks under consideration. The first is identified as Artwork on Aluminum Sheets for Bathrooms. These works measure 38 x 82 inches or 36 x 82 inches, with a thickness of .064 inches or .125 inches. These works are sold without mounting hardware, as each project is different depending on client specifications. These works will be mounted in the full length of the shower or bath wall. The artist hand grinds or hand paints with automotive paint and clear coat on the aluminum sheet to create the final artwork.
The second type of artwork is identified as Wall Artwork Decorations Made of Aluminum Sheets. The artist modifies, cuts, and/or paints the aluminum sheet to create wall art. The sheet metal may be cut into shapes or letters and painted with various designs or words. There are no style numbers as all pieces are different and not intended for mass production.
The applicable subheading for the Artwork on Aluminum Sheets for Bathrooms and Wall Artwork Decorations Made of Aluminum Sheets will be 8306.29.0000, HTSUS, which provides for Bells, gongs and the like, nonelectric, of base metal…Statuettes and other ornaments, and parts thereof: Other, Other. The rate of duty will be free.
You inquire whether the Artwork on Aluminum Sheets for Bathrooms and Wall Artwork Decorations Made of Aluminum Sheets are eligible for preferential treatment under the USMCA. The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note (GN) 11, HTSUS, implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states, in relevant part: For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country … is eligible for the preferential tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule as a “good originating in the territory of a USMCA country” only if—
the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries;
the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials;
the good is a good produced entirely in the territory of one or more USMCA countries using non-originating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o)); ….
Since the aluminum artwork contains non-originating material, it is not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i) and (ii). We must next determine whether the aluminum artwork qualifies under GN 11(b)(iii). As the imported aluminum artwork is classified in heading 8306, HTSUS, the applicable rule of origin is in GN 11(o), HTSUS, which provides, in relevant part: Chapter 83(6): A change to headings 8306 through 8307 from any other chapter. In this case, the product contains the following non-originating ingredients that need to undergo the tariff shift: aluminum alloy sheet from China. Since the non-originating ingredient, the aluminum sheet, is classified in a chapter other than from chapter 8306 or 8307 the tariff shift rule is met. Accordingly, the products, Artwork on Aluminum Sheets for Bathrooms and Wall Artwork Decorations Made of Aluminum Sheets, classified under subheading 8306.29.0000 HTSUS, are originating goods pursuant to GN 11(o). Thus, the Artwork on Aluminum Sheets for Bathrooms and Wall Artwork Decorations Made of Aluminum Sheets are eligible for preferential tariff treatment under the USMCA.
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 at https://hts.usitc.gov/current.
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 Jennifer Jameson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division