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HQ 956764




AUGUST 9, 1994

CLA-2:CO:R:C:M 956764 JAS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8708.29.50

Mr. C. B. Lay
C. B. Lay Customs Brokers, Inc.
P. O. Drawer JJ
Douglas, AZ 85608

RE: Automotive Cargo Restraint Net; Net Consisting of Pre-Cut Nylon Webbing, Bungee Cord, Fastening Straps and Metal Fasteners; Restraint Nets for Securing Merchandise in Automobile Trunks and in Pick-Up Trucks; Parts and Accessories; General Note 12(b), Originating Good, North American Free Trade Agreement (NAFTA)

Dear Mr. Lay:

Your letter of July 11, 1994, to the Customs office at Nogales has been referred to this office for reply. Your inquiry, on behalf of Mexican Industries of Michigan, Inc., concerns the tariff classification of certain automotive cargo restraint nets assembled in Mexico from components of United States and/or Canadian origin.

Our Special Classification and Marking Branch will issue a separate ruling on any partial duty exemption allowable on the Mexican assembly operation.

FACTS:

Samples were submitted that measure 4 1/2 ft. long x 13 in. wide, and consist of nylon netting, nylon webbing sewn onto the two shorter ends, and a nylon elastic bungee cord around the perimeter of the net sewn at each corner to form fastening loops. These components are said to be of U.S. or Canadian origin. These nets are packaged in Mexico with 2-part metal cleat fasteners of U.S. or Mexican origin and an instruction sheet. These cargo restraint nets are designed to be fitted in the United States into the trunks of passenger automobiles and behind the bench seats of light duty pick up trucks to secure groceries and other articles in place. The top cleat portion of each - 2 -
fastener is screwed into the bottom nut portion which is attached to the vehicle body at four locations. Installation is completed by placing the fastening loops of the net over the cleat portion of the fastener.

The provisions under consideration are as follows:

8708 Parts and accessories of the motor vehicles of headings 8701 to 8705:

Other parts and accessories of bodies
(including cabs):

8708.29 Other:

8708.29.50 Other...3.1 percent but Free under NAFTA as a good of Mexico

ISSUE:

Whether the cargo restraint nets are automotive parts and accessories for tariff purposes; whether they are originating goods for NAFTA purposes.

LAW AND ANALYSIS:

Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6. Under GRI 2(a), any reference in a heading to an article includes that article entered unassembled or disassembled.

Goods of heading 8708 must be identifiable at being suitable for use solely or principally with the motor vehicles of headings 8701 through 8705 and must not be excluded from heading 8708 by the legal notes to Section XVII. The specific length and width of the submitted samples, their looped corners, together with the 2-piece cleat fasteners lead us to conclude that they are principally used with vehicles of headings 8701 to 8705. Moreover, none of the exclusionary legal notes to Section XVII applies to this merchandise.

HOLDING:

Under the authority of GRI 1, the automotive cargo restraint nets, imported unassembled, are provided for in heading 8708. They are classifiable in subheading 8708.29.50, HTSUS. Under - 3 -

General Note 12(b)(i), HTSUS, as they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States, the nets are originating goods for purposes of NAFTA.

Sincerely,

John Durant, Director
Commercial Rulings Division

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