MAR-2 RR:NC:1:109 R00721

Mr. William Brent Weaver
Director of Operations
Kyocera Solar, Inc.
7812 E Acoma Drive
Scottsdale, AZ 85260

RE: The country of origin marking under the North American Free Trade Agreement (NAFTA), of solar panels from Mexico; Article 509

Dear Mr. Weaver:

In your letter dated August 19, 2004 you requested a ruling on the country of origin marking for imported solar panels from Mexico under NAFTA.

You state in your letter that Kyocera Solar, Inc. of Scottsdale Arizona is in the process of setting up an assembly line at Kyocera’s Maquiladora facility in Tijuana, Mexico. The Maquiladora facility will assemble various solar panels ranging in size from 35 watts to 187 watts from solar cells manufactured at Kyocera’s factory in Japan. All the components utilized to produce the solar panels will be imported into Mexico from Japan, with the exception of the glass, which is manufactured in the USA. Descriptive information and technical drawings of the finished solar panels were submitted with your request.

In response to your inquiry as to the country of origin marking for the imported solar panels from Mexico under NAFTA, the marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.

Section 134.1(b) of the regulations, defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. 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 this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added).

Section 134.1(j) of the regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish.

The articles in question are all processed in Mexico and advanced in value and/or improved in condition prior to being imported into the U.S. Since Mexico is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported articles are a "good of a NAFTA country", and thus subject to the NAFTA marking requirements.

Part 102 of the regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes.

Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we note that the applicable tariff provision for the solar panels will be 8541.40.6020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Solar cells: Assembled into modules or made up into panels.” We also note, that the individual solar cells used in the assembly of the solar panels are classified in subheading 8541.40.6030, while the other components used in the assembly process fall in subheadings other than 8541.40.6020. We find that the imported solar panels are goods of Mexico for marking purposes because they meet the tariff shift requirement set out in Part 102 of the regulations. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.

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 Linda M. Hackett at 646-733-3015.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division