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NY A89699




December 10, 1996

CLA-2-30:RR:NC:2:238 A89699

CATEGORY: CLASSIFICATION

TARIFF NO.: 3005.90.1000

Mr. Steve Pepi
85 River Rock Drive /#202
Buffalo, NY 14207

RE: The tariff classification and country of origin marking, under the North American Free Trade Agreement (NAFTA), of THALAFIX sterile dressings from Canada; Article 509

Dear Mr. Pepi:

In your letter dated November 18, 1996, on behalf of your client, Dumex Medical Surgical Products Ltd., you requested a ruling on the tariff classification and country of origin of THALAFIX sterile dressings, from Canada, under the NAFTA.

The submitted sample, designated as THALAFIX Natural Sea Salt Dressing, consists of a sealed envelope containing a sterile, 8-ply, cotton dressing (gauze pad), measuring 10cm x 10cm, which has been impregnated with natural sea salt.

Your client, in his letter, states that they will import untreated gauze sponges from China into Canada. In Canada, the sponges are saturated in a salt solution. The moisture is then removed, leaving the salt behind. Finally, the sponges are separated, individually pressed, inspected, and packaged. After packaging, the product is sterilized. In our opinion, the sea salt constitutes a "pharmaceutical substance", for purposes of the tariff schedule.

The applicable tariff provision for the subject product will be 3005.90.1000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for: "Wadding, gauze, bandages and similar articles (for example, dressings, adhesive plasters, poultices), impregnated or coated with pharmaceutical substances or put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes: Other: Coated or impregnated with pharmaceutical substances." The general rate of duty will be free. 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 Customs 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.

To reiterate, you state that the gauze sponges are imported from China into Canada, and processed in Canada prior to the importation of the finished product (i.e., THALAFIX dressings) into the U.S. Since "Canada" 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 product is a "good of a NAFTA country", and thus subject to the NAFTA marking requirements. Part 102 of the Customs 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 Customs Regulations to the facts of this case, we find that the imported product is a "good of a NAFTA country", for marking purposes. Accordingly, in our opinion, the country of origin for the subject product will be Canada.

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

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 Cornelius Reilly at 212-466-5770.

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,

Roger J. Silvestri

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