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NY K89739




October 21, 2004

CLA-2-56:RR:NC:3:350 K89739

CATEGORY: CLASSIFICATION

TARIFF NO.: 5603.94.3000

George Keller
Customs Advisory Services, Inc.
1003 Virginia Ave. Suite 200
Atlanta, GA 30354

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a nonwoven polyester material laminated with plastic foam and a nonwoven polyester material laminated with PVC sheeting from Canada; Article 509. 19 CFR 102.21c(4)

Dear Mr. Keller:

In your letter dated September 17, 2004, you requested a ruling on the status of two materials, one a nonwoven polyester material laminated with plastic foam and the other a nonwoven polyester material laminated with PVC sheeting from Canada under the NAFTA. Two samples of nonwoven laminated fabric accompanied your request for a ruling.

Sample 1 is described as a nonwoven polyester material laminated on one side with plastic foam. The synthetic polyester staple fibers are imported into the U.S from an unspecified source and, subsequently, exported to Canada to be processed into the nonwoven material. The polyurethane foam is a product of the U.S. The finished product is then imported into the U.S., and, ultimately, will be exported to Mexico for use in the production of automobile sun-visors.

Sample 2 is described as a nonwoven polyester material laminated on one side with a compact polyvinyl chloride (PVC) sheeting. The synthetic polyester staple fibers are imported into the U.S. from an unspecified source, and, subsequently, and exported to Canada to be processed into the nonwoven material. The PVC sheeting is of U.S. origin. In Canada the nonwoven material will be laminated to the PVC sheeting. The finished product is then imported into the U.S. This material is also used in the production of automobile sun-visors.

The applicable tariff provision for the nonwoven polyester material laminated with plastic foam (sample 1) will be 5603.94.3000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for nonwovens, whether or not impregnated, coated, covered or laminated, weighing more than 150 g/m, laminated fabrics, of other than filaments. The general rate of duty will be Free.

The applicable tariff provision for the nonwoven polyester material laminated with PVC sheeting (sample 2) will be 5603.94.3000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for nonwovens, whether or not impregnated, coated, covered or laminated, weighing more than 150 g/m, laminated fabrics, of other than filaments. The general rate of duty will be Free.

NAFTA

General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if--

(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or

(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--

(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or

(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or

(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--

(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or

(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.

The merchandise does not qualify for preferential treatment under the NAFTA because none of the above requirements are met. Note that one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/56, HTSUSA. That is, the nonoriginating synthetic polyester staple fibers do not undergo the requisite change in classification in Canada.

Your letter also requests the classification and NAFTA status of these laminated materials under different circumstances. In that circumstance, the nonoriginating fibers will be imported into the U.S. and exported to Mexico where the lamination will be done. You indicate that the “finished material” will be used in the production of an automobile’s sun visor or an automobile’s interior, both of which will be ultimately exported to the U.S. We are unable to answer these questions without additional information.

Describe in detail all the processing done in Mexico. Specifically, what processing is done to the laminated materials (sample 1 and 2) in order to produce the automobile sun visors and interiors? What exactly is being exported to the U.S. – entire cars or car parts and accessories?

In addition, your letter requests the country of origin, with regards to samples 1 and 2, if the nonwoven material that is produced in Canada is imported into the U.S. prior to lamination and then is laminated in the U.S.

COUNTRY OF ORIGIN – LAW AND ANALYSIS

Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995, in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21.

Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable.

Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:"

Paragraph (e) in pertinent part states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section":

HTSUS Tariff shift and/or other requirements

5602 – 5603
Except for fabric of wool or of fine animal hair, a change from greige fabric of heading 5602 through 5603 to finished fabric of heading 5602 through 5603 by both dyeing and printing when accompanied by two or more of the following finishing operations: bleaching shrinking, fulling, napping, decating, permanent stiffening, weighting, permanent embossing, or moireing; or If the country of origin cannot be determined under (1) above, a change to heading 5602 through 5603 from any heading outside that group, provided that the change is the result of a fabric-making process.

Accordingly, as the laminated nonwoven material produced in the U.S. does not meet the tariff shift, Section 102.21(c)(2) is inapplicable.

Section 102.21(c)(3) states that, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) or (2) of this section":

(i) If the good was knit to shape, the country of origin of the good is the single country, territory, or insular possession in which the good was knit; or

(ii) Except for goods of heading 5609, 5807, 5811, 6213, 6214, 6301 through 6306, and 6308, and subheadings 6209.20.5040, 6307.10, 6307.90, and 9404.90, if the good was not knit to shape and the good was wholly assembled in a single country, territory, or insular possession, the country of origin of the good is the country, territory, or insular possession in which the good was wholly assembled.

As the subject merchandise is neither knit, nor wholly assembled in a single country, Section 102.21 (c)(3) is inapplicable.

Section 102.21 (c)(4) states, "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1), (2) or (3) of this section, the country of origin of the good is the single country, territory or insular possession in which the most important assembly or manufacturing process occurred".

In the case of the subject merchandise, the conversion of fibers into the finished nonwoven fabric constitute(s) the most important manufacturing process. Accordingly, the country of origin of the laminated material is Canada.

The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request.

      This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 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 Deborah Walsh at 646-733-3044.

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 and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229.

Sincerely,

Robert B. Swierupski
Director,

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