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NY J89197




October 16, 2003

CLA-2-70:RR:NC:1 :126 J89197

CATEGORY: CLASSIFICATION

TARIFF NO.: 7008.00.0000

Mr. Harold Averill
Corrigan Dispatch Company
Box 3610
1350 Cheers Boulevard
Brownsville, Texas 78523-3610

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a multiple-walled insulating unit of glass containing a leaded glass panel from Mexico; country of origin for marking purposes under NAFTA

Dear Mr. Averill:

In your letter dated September 18, 2003, on behalf of Therma-Tru Corporation, you requested a ruling on the tariff classification of a multiple-walled insulating unit of glass containing a leaded glass panel from Mexico. You also requested a ruling on the status of this product under NAFTA as well as the correct country of origin for marking purposes.

The product at issue is described as a multi-panel insulating unit (“door lite”). It consists of a leaded glass panel within an insulating unit composed of sheets of tempered glass.

You stated that the outer glass panels (the tempered sheets) which make up the insulating unit are produced in the United States from raw material of U.S. and Canadian origin. The leaded glass panel within the unit is made in China. These components are combined in Mexico to make the complete product.

In Mexico the outer glass panels of U.S. origin are combined to form the insulating unit, and the leaded glass panel of Chinese origin is placed within the insulating unit. In addition to the outer glass panels of U.S. origin and the inner glass panel of Chinese origin, when the complete insulating unit is formed in Mexico, the laborers use edging or sealing material of U.S. origin, plastic molding of U.S. origin (which forms the frame for the insulating unit) and screws of Chinese origin.

The applicable tariff provision for the multiple-wall insulating unit of glass containing a leaded glass panel will be 7008.00.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for multiple-wall insulating units of glass. The general rate of duty will be 3.9 percent ad valorem.

Regarding the NAFTA status of this article, please note the following.

Under General Note 12(b)(ii) of the HTS, a product imported into the Customs territory of the United States will qualify as “goods originating in the territory of a NAFTA country” when each of the non-originating materials used in the production of the good undergoes a change in classification described in General Note 12 (t).

In this case, you state that the sheets of tempered glass (classifiable in heading 7007 if imported simply as sheets) are made in the United States of U.S. and Canadian materials; these sheets are used to form the insulating unit of glass (classifiable in heading 7008) in Mexico. In addition, the Chinese leaded glass panel (classifiable in heading 7016 if imported alone) is inserted into the insulating unit of glass in Mexico.

Each of the non-originating materials used to make the multiple-walled insulating unit of glass containing a leaded glass panel has satisfied the changes in tariff classification required under General Note 12(t)/70.3 of the HTS. This rule allows “a change to headings 7003 through 7009 from any heading outside that group.” The change in classification from heading 7016 (which would apply to the Chinese leaded glass panel if imported alone) to heading 7008 (which covers the multiple-walled insulating unit of glass) is an allowable tariff shift under the NAFTA rules. Therefore, this multiple-walled insulating unit of glass containing a leaded glass panel will be entitled to a free rate of duty under NAFTA upon compliance with all applicable laws, regulations, and agreements.

Regarding your question on the correct country of origin for marking purposes, please note the following.

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. For goods of non-NAFTA countries, 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." However, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.

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.

You state that the imported multiple-wall insulating unit of glass containing a leaded glass panel is assembled in a NAFTA country, Mexico, prior to being imported into the United States. Since Mexico is defined as a NAFTA country under 19 CFR 134.1(g), we must apply the NAFTA Marking Rules in order to determine the country of origin of the product.

Part 102 of the regulations sets forth the "NAFTA Marking Rules." Section 102.11 of the regulations sets forth the required hierarchy for determining country of origin for marking purposes.

Under Section 102.11(a)(3) of the regulations, the country of origin of a good is the country in which each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Section 102.20 of the regulations.

In this case, U.S. tempered glass sheets (classifiable in heading 7007 when imported simply as glass sheets) are assembled into a multiple-wall insulating unit of glass (classifiable in heading 7008) in Mexico. In addition, a Chinese leaded glass panel (classifiable in heading 7016 if imported alone) is inserted into the multiple-wall insulating unit of glass in Mexico. Section 102.20 of the Customs Regulations permits a change to heading 7008 from any other heading.

Mexico is the country in which each foreign material incorporated in the good undergoes an applicable change in tariff classification set out in section 102.20 of the regulations. Therefore, applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported multiple-wall insulating unit of glass containing a leaded glass panel is a good of Mexico for marking purposes.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 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 ruling, contact National Import Specialist Jacob Bunin at 646-733-3027.

Sincerely,

Robert B. Swierupski
Director,

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