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NY 812139




July 26, 1996

CLA-2-62:S:N:NV:354 812139

CATEGORY: CLASSIFICATION

TARIFF NO.: 6212.10

Mr. Yannick Chambon
Santoul USA
229 West 36th Street
New York, NY 10018

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Brassieres from Mexico; Article 509. Foreign Assembly, HTS 9802.00.80

Dear Chambon:

In your letters dated June 23 and July 17, 1995 you requested a ruling on the status of brassieres from Mexico under the NAFTA. You also inquire about foreign components used in assembly operations.

You have asked about the duty of brassieres from Mexico when incorporating a foreign (French) underwire. The Harmonized Tariff Schedule of the United States General Note 12(t)/62 tariff shift rule is satisfied by:

A change to subheading 6212.10 from any other chapter, provided that the good is both cut and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

Chapter 62 rule 3 states that "the rule applicable to the good (in this case the brassiere) shall only apply to the component that determines the classification of the good." The foreign underwire does not disqualify the brassiere from preferential treatment under NAFTA.

The applicable tariff provision for the brassiere will be 6212.10, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for brassieres. The general rate of duty will be 17.9 percent ad valorem.

Each of the non-originating materials used to make the brassiere has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/62. The brassiere will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. Foreign components, such as underwire, imported into the United States by you and then sent by the ultimate importer (not your firm)or shipped directly to an off shore assembler from a foreign country are dutiable at the rate of the completed article upon importation into the U.S. In the case of HTS 6212.10 the rate is 17.9 percent ad valorem.

You have also inquired whether or not placing a tip on the foreign underwire in the U.S. will change the country of origin. Section 10.14 (b) of the Customs Regulations [19 CFR 10.14 (b)] provides that:

. . . mere finishing or modification of a partially or nearly complete foreign product in the U.S. will not result in the substantial transformation of such product and it remains the product of the foreign country.

The underwire in this instance would still be considered a foreign product.

You also inquire about the application of HTS 9802 (formerly 807). American-made fabricated components which are returned to the U.S. as parts of articles assembled abroad are eligible for the exemption of duty provided by HTS 9802.00.80. This claim for exemption is not limited to certain countries.

Finally, you inquire about duties applicable for imports into Mexico and Canada. We suggest that you contact the respective Customs offices in each of those countries.

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

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

Sincerely,

Jean F. Maguire
Area Director

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