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NY F82110




March 23, 2000

CLA-2-40:RR:NC:SP: 222 F82110

CATEGORY: CLASSIFICATION

TARIFF NO.: 4012. 10.40 ; 4012.10.80

Mr. Reginald Williams
A.N. Deringer, Inc.
RR 3 Box 5400
Houlton, ME 04370

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of retreaded truck tires from Canada; Article 509

Dear Mr. Williams:

In your letter dated January 10, 2000, on behalf of Provincial Bandag Tire, you requested a ruling on the status of retreaded truck tires from Canada under the NAFTA.

You state that Provincial Bandag will use casings from tires manufactured in several countries such as the U.S.A. Canada, Japan and Spain. They will be retreaded in Canada and then exported to the United States.

The applicable tariff provision for the retreaded tires, if of radial construction, will be 4012.10.40 Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for retreaded tires, other, radial. The general rate of duty will be 4 percent ad valorem.

The applicable tariff provision for the retreaded tires, if of other than radial construction, will be 4012.10.80 Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for retreaded tires, other, other. The general rate of duty will be 3.4 percent ad valorem.

You have stated that certain of the tire casings used in the retreaded tires are manufactured in the United States or Canada. You have not indicated, however, whether all of the components used in the manufacture of these tires originate in the United States, Canada or Mexico.

If all of the components originate in the United States, Canada or Mexico, then the retreaded tires, being made in the territory of Canada, using materials which themselves were originating, will satisfy the requirements of HTSUSA General Note 12(b) (iii). The merchandise will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

Retreaded tires made from the casings of tires manufactured in other than the U.S., Mexico or Canada, do not qualify for preferential treatment under the NAFTA. This is so because, one or more of the non-originating materials used in the production of the tires will not undergo the change in tariff classification required by General Note 12(t)/40.6, HTSUSA.

You also inquire about the country of origin marking requirements for the imported tires which are retreaded in a NAFTA country prior to being imported into the U.S.

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 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 retreaded tires are 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 retreaded tires are 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 retreaded tires are a good of Canada for marking purposes. Other country of origin information on the retreaded tire should be obliterated.

For marking requirements other than country of origin please request “an official interpretation of marking requirements” from the National Highway Traffic Safety Administration, Office of Chief Council; 400 7th Street SW, NCC01; Washington DC, 20590.

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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