CLA-2-95:RR:NC:2:224 C87374
Adam Trina
Missoula Bombproof Fly Co.
908 1/2 "N" Street
LaGrande OR 97850
RE: The tariff classification and status under the North
American Free Trade Agreement (NAFTA), of fishing flies from
Mexico; Article 509.
Dear Mr. Trina:
In your letter dated April 23, 1998, you requested a ruling on
the status of fishing flies from Mexico under the NAFTA.
Fishing flies are produced in Mexico. All the materials for
the flies originate and are made ready for assembly in the United
States with the exception of the hooks which originate in Japan
and the thread which comes from Canada. In Mexico, the U.S.
materials, including hackle, tanned hides, metal beads, synthetic
dubbing fur, and assorted bird feathers are attached to the
Japanese hook with either thread or super glue or both to produce
the fly.
The applicable tariff provision for fishing flies will be
subheading 9507.90.7000, Harmonized Tariff Schedule of the United
States Annotated (HTSUSA), which provides for "Fishing rods, fish
hooks and other line fishing tackle; ...Other: Other, including
parts and accessories." The general rate of duty will be 9
percent ad valorem.
To be eligible for tariff preferences under the NAFTA, goods
must be an "originating good" within the rules of origin in
general note 12(b), HTSUSA. General Notes 12(b)(i) and (ii)(A),
HTSUSA, state:
[f]or 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 an/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.
You state that the finished fishing fly will contain a non-originating fishing hook component. Therefore, because the fly
contains material from a country other than a NAFTA participating
member, general note 12(b)(i), HTSUSA, does not apply.
Consequently, we must resort to general note 12 (b)(ii)(A),
HTSUSA.
Because the completed fishing fly is specifically provided for
under subheading 9507.90.7000, HTSUSA, a transformation is
evident when a change in tariff classification occurs which is
authorized by general note 12(t)/95.10, HTSUSA, which states:
A change to headings 9507 through 9508 from any other
chapter.
Therefore, the non-originating fishing hook must come from a
chapter other than 95, HTSUSA. But fishing hooks would be
classified in all instances in HTSUSA chapter 95. Consequently,
a transformation of the good brought on by a change in tariff
classification does not occur, and the completed fishing fly,
containing the hook, is not eligible for preferential treatment
under the NAFTA.
This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 C.F.R. 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 Tom
McKenna at 212-466-5475.
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, U.S. Customs
Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division