NY G85991 - The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a Blood Cardioplegia System from Mexico; Article 509 - United States International Trade Commision Rulings

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NY G85991

January 9, 2001

CLA-2-90:RR:NC:MM:105 G85991

CATEGORY: CLASSIFICATION MARKING

TARIFF NO.: 9018.90

Ms. Michelle Aragon
COBE Cardiovascular, Inc.
14401 W. 65th Way
Arvada, CO 80004-3599

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a Blood Cardioplegia System from Mexico; Article 509

Dear Ms. Aragon:

In your letter dated December 18, 2000, you requested a ruling on the status of a Blood Cardioplegia System from Mexico under the NAFTA. You specifically asked us to grant your request to mark your item “Made in USA”.

No sample nor illustration was provided of the materials (including components and subassemblies), which you state will all be products of the USA and which will be returned, after “labor activities only” in Mexico, to your facilities in the USA for “extensive quality testing” and sterilization. You provided only a general description of the “Sorin BCD Advanced Blood Cardioplegia System”, which we take to be your prospective import into the USA.

You give no details about the labor activities in Mexico, but we understand them to be more than “minor processing” as defined in Customs Regulation 102.1-m.

On the basis that all the raw materials are of USA origin and all the labor upon those raw materials is either Mexican or American (to put together the subassemblies for example), your import is entitled to NAFTA Preference per CR 181.1-q upon compliance with all applicable laws, regulations, and agreements. The country of origin is either the United States or Mexico.

To determine which applies to your import, we first must determine its 6 digit classification since that will determine the specific NAFTA Marking Rule that will apply. We cannot determine its 8 digit classification from the information provided.

The applicable tariff subheading for the import will be 9018.90, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “other” instruments and appliances, and parts and accessories thereof used in medical, surgical, or veterinary sciences. The applicable specific NAFTA Marking Rule is therefore in CR 102.20-q.

Your item is not described by either a-1 or a-2 to CR 102.11 (General Rules) since the import will use “materials” (including components and subassemblies) which are not “domestic”, i.e., non-Mexican.

Since you have provided virtually no details on each of the USA materials, we cannot determine the classification of each. Therefore, we cannot determine if less than 7% (by value) does not meet the applicable Tariff Shift test in CR 102.20-q, noting CR 102.11-a-3 and 102.13-a. If so, the country of origin of your import will be Mexico. We note Headquarters Ruling Letter 560297 JML, dated March 28, 1997, regarding a medical infusion device.

If CR 102.11-a-3 is not determinative, we note that CR 102.11-b may not apply on the basis that the import is a “set”. We note in particular the extension line that is “packaged separately” and the BCD IV Pole. If so, noting that the import is entitled to NAFTA Preference, as indicated above, its country of origin would be Mexico, per CR 102.19-a, assuming that a Certificate of Origin was completed and signed. We note HRL 559421 BLS, dated September 16, 1996, regarding certain medical kits.

Independent of the final determination by Customs of the country of origin of the import, the use of “Made in USA” is a matter within the primary jurisdiction of the Federal Trade Commission (FTC). Therefore, you should contact the FTC at the following address regarding the appropriate use of this phrase: Federal Trade Commission, Division of Enforcement, 6th and Pennsylvania Avenue, NW, Washington, D.C. 20508.

Regarding the country of origin question, we are returning your request for a ruling, and any related samples, exhibits, etc., because we need additional information in order to issue a ruling. Please submit the additional information indicated below:

Samples, photographs, drawings or other pictorial representations of each item, including the American materials. In each case they must be exactly as they left either the USA or Mexico.

Descriptive literature or a detailed explanation on the use of each of the items.

Detailed description of the labor activities in Mexico. Due to CR 102.18-b-1-ii, we are particularly interested in whether subassembly components were produced from American raw materials.

Breakdown of component materials by weight and value.

In addition, you must correct your procedural errors and bring any new request into compliance with the below. Give an explanation if the information is not “known”.

INFORMATION REQUIRED IN RULING REQUESTS

Ruling requests must be in writing, must be filed in triplicate and must contain a complete statement of all relevant facts relating to the transaction including:

- The names, addresses, and other identifying information of all interested parties (if known); the manufacturer ID code (if known); - The name(s) of the port(s) in which the merchandise will be entered (if known); - A description of the transaction; for example, a prospective importation (merchandise) from (country); - A statement that there are, to the importer’s knowledge, no issues on the commodity pending before the Customs Service or any court; and - A statement as to whether classification (HTS or TSUS) advice had been sought from a Customs officer; and if so, from whom, and what advice was rendered, if any.

When this information is available, you may wish to consider resubmission of your request regarding the country of origin of your import under the Customs statutes. If you decide to resubmit your request, please include all of the material that we have returned to you and mail your request to U.S. Customs, Customs Information Exchange, Room 437, 6 World Trade Center, New York, NY 10048, attn: Binding Rulings Section. This ruling is being issued (regarding the 6 digit classification and the NAFTA Preference) under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.

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 above, contact National Import Specialist James Sheridan at 212-637-7037.

Sincerely,

Robert B. Swierupski, Director
National Commodity Specialist Division

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