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NY I83955




July 10, 2002

CLA-2-94:RR:NC:SP:233 I83955

CATEGORY: CLASSIFICATION

TARIFF NO.: 9401.90.4000

Ms. A.L. Spencer
Grand Rapids Chair Company
625 Chestnut SW
Grand Rapids, MI 49503

RE: The tariff classification and country of origin marking of unfinished wood chair seats from Canada.

Dear Ms. Spencer:

In your letter dated June 26, 2002, you requested a tariff classification ruling.

The merchandise to be imported consists of unfinished wood chair seats. After importation, each seat is subject to three sanding operations, wood finishing, assembling into chairs and packaging. You have submitted a photograph of the unfinished chair seats in their imported condition as well as literature showing some of the finished chairs.

The applicable subheading for the unfinished wood chair seats will be 9401.90.4000, Harmonized Tariff Schedule of the United States (HTS), which provides for seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: parts: other: of wood. The rate of duty will be free.

You have also requested that the unfinished wood chair seats be excepted from country of origin marking pursuant to 19 CFR 134.35.

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.

In order to determine the country of origin marking requirements we must first apply the NAFTA Marking Rules in order to determine whether the imported unfinished wood chair seat “is a good of a NAFTA country”, prior to being further processed in the U.S.

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 rules of origin set forth in Part 102 of the regulations to the facts of this case, we find that, for marking purposes, the imported unfinished wood chair seat is a good of a NAFTA country prior to being further processed in the U.S.

The only issue which remains is whether the U.S. processor is the ultimate purchaser within the meaning of section 134.35(b). Section 134.35(b) of the regulations, provides that
a good of a NAFTA country which is to be processed in the United States in a manner that would result in the good becoming a good of the United States under the NAFTA marking rules is excepted from marking. Unless the good is processed by the importer or on its behalf, the outermost container of the good shall be marked in accord with this part.

Based on the facts of this case, we find that the imported unfinished wood chair seat as a result of the further processing performed in the U.S. becomes an article of U.S. origin under Part 102 of the regulations.

Accordingly, the imported unfinished wood chair seats, which are goods of a NAFTA country that become U.S. articles as a result of being further processed in the U.S., in the manner described above, are excepted from marking and only the outermost containers are required to be marked with the country of origin “Canada” if the imported unfinished wood chair seats are not processed by the importer or on its behalf.

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 Lawrence Mushinske at 646-733-3036.

Sincerely,

Robert B. Swierupski
Director,

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