United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1997 NY Rulings > NY 818673 - NY 840391 > NY 818764

Previous Ruling Next Ruling
NY 818764




March 4, 1996

CLA-2-67:RR:NC:WA:353 818764

CATEGORY: CLASSIFICATION

TARIFF NO.: 6701.00.3000

Mr. Robert P. Gruters
Karen Gruters, Kara Leigh Company
P.O. Box 434
Simsbury, CT. 06070

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a feather tiara from Mexico; Article 509

Dear Mr. Gruters:

In your letter dated January 23, 1996, received in our office on January 31, 1996, you requested a ruling on the status of a feather tiara from Mexico under the NAFTA. Samples were submitted with your ruling request; a "Marabou Feathered Tiara" and a sample component of a "Marabou feather Boa".

According to your information, the tiara components will be sent to Mexico where they will be assembled to the finished product and re-shipped as a feather tiara back to the United States. The components of the tiara include feathers, a plastic band, a textile bow with a rosette at the center, plastic string pearls, and curled textile ribbons. The country of origin of the feathers will be China, while the other components may be of foreign or U.S. origin. You also indicate that the feathers will be by far the major cost component.

The North American Free Trade Agreement (NAFTA) eliminates tariffs on most good originating in Canada, Mexico, and the United States over a minimum transition period of fifteen years. Generally, tariffs only will be eliminated on goods that "originate", as defined in Article 401 of the NAFTA and General Note 12, HTSUSA. Article 401 defines "originating" in four ways: (a) goods wholly obtained or produced in the NAFTA region; (b) goods produced in the NAFTA region wholly from originating materials; (c) goods meeting the Annex 401 origin rule; and (d) unassembled goods and goods classified with their parts which do not meet the Annex 401 rule of origin but contain 60 percent regional value content using transaction value method (50 percent using the net cost method).

The components which comprise the feather tiara, i.e. the feathers as well as some of the other components are imported into Mexico as non-originating materials, therefore the feather tiara is not an originating good through methods (a) and (b) above. Article 401(b) of the NAFTA indicates that goods may "originate" in Canada, Mexico, or the United States, even if they contain non-originating materials, if the materials satisfy the rules of origin specified in Annex 401 of the NAFTA. The Annex 401 rules of origin by General Note 12 of the HTSUSA, are based on a change in tariff classification under the Harmonized Tariff Schedule, a regional value content, or both.

The applicable tariff provision for the feather tiara will be 6701.00.3000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for "Skins and other parts of birds with their feathers or down, feathers, parts of feathers, down and articles thereof (other than goods of heading 0505 and worked quills and scapes): Articles of feathers or down....". The general rate of duty will be 4.7 percent ad valorem. To secure preferential duty treatment under the NAFTA, General Note 12(t)/67 requires a change to subheading 6701.00.30 from any other tariff item.

Each of the non-originating materials used to make the feather tiara has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/67. The feather tiara will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

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 Martin Weiss at 212-466-5881.

Sincerely,

Roger J. Silvestri
Director

Previous Ruling Next Ruling

See also: