NY 896490 - The tariff classification and status under the North American Free Trade Agreement (NAFTA), of doll houses from Canada. - United States International Trade Commision Rulings

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NY 896490

April 26, 1994

CLA-2-95:S:N:N8:896490 225

CATEGORY: CLASSIFICATION

TARIFF NO.: 9503.90.6000

Ms. Elizabeth Bowker
The Moonbeam Dollhouse Company
5 Provincial Park Road
Moonbean, Ontario, Canada P0L 1V0

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of doll houses from Canada.

Dear Ms. Bowker:

In your letter dated March 25, 1994 you requested a ruling on the status of doll houses from Canada under the NAFTA.

Your product is completely assembled and finished doll houses on a scale of 1":1'. The doll houses are marketed to miniature collectors, but because of the sturdy construction, are suitable for children over the age of three. With the exception of certain plywood, Balsa sheets, wooden pieces used to make the staircase (imported unfinished) and the door knobs, the material used to construct these doll houses is wholly obtained or produced in Canada. The doll houses wholesale for approximately $350.00 Canadian dollars minimum.

The applicable tariff provision for the doll houses will be 9503.90.6000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Other toys;...;parts and accessories thereof:Other: Other toys (except models), not having a spring mechanism. The general rate of duty will be 6.8 percent ad valorem.

The doll houses, having been produced in the territory of Canada from one or more non-originating materials which did not undergo the changes in tariff classification under HTSUSA General Note 12(t) Chapter 95, because those materials are provided for under the HTSUSA as parts of the goods and the subheading for the goods provides for both the goods and its parts, will be considered as goods which originate in the territory of a NAFTA country, provided that all other non-originating materials undergo a change in tariff classification and the goods and non-originating materials are not both parts classifiable in the aforementioned heading or subheading.

The Regional Value Content (RVC) of such goods must be not less than 60 percent where the Transaction Value Method is used, or not less than 50 percent where the Net Cost Method is used. The goods must satisfy all other applicable requirements. Such goods will be entitled to a 2.7 percent ad valorem 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). If you desire a ruling regarding the RVC of your goods and their eligibility for NAFTA preferential treatment, send the information noted in Section 181.93(b) of the Customs Regulations (19 CFR 181.93(b)), to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1301 Constitution Ave. N.W., Franklin Court, Washington, D.C. 20229, along with a copy of this letter.

In your letter you also asked whether the proposed marking "Manufactured in Canada" is an acceptable country of origin marking for imported doll houses. A marked sample was submitted with your letter for review.

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 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 interim amendments to the Customs Regulations published as T.D. 94-4 (59 Fed. Reg. 109, January 3, 1994) with corrections (59 Fed. Reg. 5082, February 3, 1994) and T.D. 94-1 (59 Fed. Reg. 69460, December 30, 1993). These interim amendments took effect on January 1, 1994 to coincide with the effective date of the NAFTA. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in T.D. 94-4 (adding a new Part 102, Customs Regulations). The marking requirements of these goods are set forth in T.D. 94-1 (interim amendments to various provisions of Part 134, Customs Regulations).

Section 134.45(a)(2) of the interim 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. Section 134.1(g) of the interim 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.

As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.

With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.

The proposed marking of imported doll houses, as described above, is conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and is an acceptable country of origin marking for the imported doll houses.

This ruling is being issued under the provision of Part 181 of the Customs Regulations (19 CFR Part 181).

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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