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NY F82030




March 15, 2000

CLA-2-67:RR:NC:SP:222 F82030

CATEGORY: CLASSIFICATION

TARIFF NO.: 6702.90.3500

Ms. Barbara Lasher
A.N. Deringer, Inc.
P.O. Box 510
Sweetgrass, MT 59484

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a corner swag kit from Canada; Article 509

Dear Ms. Lasher:

In your letter dated January 10, 2000, you requested a ruling on the status of a corner swag kit, style #8388, from Canada under the NAFTA. The kit upon completion would produce an arrangement of artificial flowers mixed with natural dried foliage on a wicker base.

The kit consists of a wicker component made in the Philippines, “silk” flowers made in China, (the flowers are actually of man-made fiber), ribbon made in Taiwan and natural dried foliage grown in the U.S. These items are packaged together in Canada to form the kit. They will be imported, unassembled in a plastic bag with an instruction sheet showing a picture of the completed artificial flower arrangement.

The applicable tariff provision for the kit will be 6702.90.3500, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for artificial flowers, foliage and fruit and parts thereof; articles made of artificial flowers, foliage or fruit, of other materials: of man-made fibers. The general rate of duty will be 9 percent ad valorem.

The merchandise does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials ( the man-made fiber flowers) used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/67, HTSUSA.

You also ask for information regarding the marking of the kit. 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 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 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.

You state that the imported kit is processed in a NAFTA country "Canada" prior to being imported 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 kit is a "good of a NAFTA country", and thus subject to the NAFTA marking requirements.

Part 102 of the 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 regulations to the facts of this case, we find that the imported kit is a good of China for marking purposes.

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 Alice R. Masterson at 212-637-7090.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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