NY C81569 - Marking of goods under NAFTA - United States International Trade Commision Rulings

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 > 1998 NY Rulings > NY C81554 - NY C81603 > NY C81569

Previous Ruling Next Ruling
NY C81569

December 8, 1997

MAR-2:RR:NC:WA:353 C81569

CATEGORY: MARKING

Ms. Sue Baiz
Customs Leathercraft
811 West 58 Street
Los Angeles, CA 90037

RE: Marking of goods under NAFTA

Dear Ms.Baiz:

In your letter dated October 31, 1997, received in our office on November 5, 1997, you requested a binding ruling on marking of a tool pouch and tool apron manufactured in Mexico from U.S. hides. Samples of a tool pouch and tool apron were submitted for review.

Custom Leathercraft states that U.S. hides are sent to Mexico where they are tanned, cut, sewn and assembled into a tool apron or pouch such as represented by the submitted samples. You ask if there is such a program known as a "free enterprise zone" in Mexico that would allow for the above named operations in Mexico and allow the goods to be marked "Made in USA"?

Leathercraft has stated that they are aware of the Maquiladora and Pitex programs which are temporary importation programs that allow for the temporary entry of goods into Mexico for the purpose of repair, transformation or manufacture.

If the goods were manufactured under the Maquiladora program (Mexican foreign trade zone) and returned to the United States they would be eligible for tariff preferences under the NAFTA as the goods were wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States.

In order to determine the country of origin marking requirements, Section 102.11 of the Regulations sets forth the hierarchy for determining country of origin for marking purposes.

Applying the NAFTA Marking Rules set forth in Part 102 of the Regulations to the facts of this case, we find that, for marking purposes, the imported tool apron and pouch are products of Mexico. This conclusion is reached through an analysis of Regulation 102.11. Section 102.11(a)(1) and section 102.11(a)(2) do not apply to the facts presented because the goods are neither wholly obtained or produced in Mexico nor are they produced exclusively from domestic materials.

Since an analysis of sections 102.11(a)(1) and 102.11(a)(2) have not yielded a country of origin determination, we look to section 102.11(a)(3). Section 102.11(a)(3) provides that the country of origin is the country in which "[e]ach foreign material incorporated in that good undergoes an applicable change in tariff.

Mexico would be considered country of origin for marking purposes as both the tool pouch and tool apron are made from U.S. hides ( a product of heading 4101) and satisfy the tariff shift for 4202.92 (tool pouch) ... "A change to subheading 4202.91 through 4202.99 from any other heading, provided that the change does not result from the assembly of foreign cut components" and the tariff shift for 4205.00 (tool apron)... "A change to heading 4203 through 4206 from any other heading , including another heading within that group."

The use of foreign trade zones in Mexico would not effect a country of determination for marking purposes.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

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,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling