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NY L83194





April 4, 2005

CLA-2-39:RR:NC:SP:221 L83194

CATEGORY: CLASSIFICATION

TARIFF NO.: 3925.90.0000

Mr. Matthew Wilmore
Evenflo Logistics
707 Crossroads Court
Vandalia, Ohio 45377

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of safety gates from Mexico; Article 509

Dear Mr. Wilmore:

In your letter dated February 24, 2005, you requested a ruling on the status of safety gates from Mexico under the NAFTA.

The sample provided with your letter is identified as a “Position and Lock” memory fit pressure gate, style 202. The product is a pressure gate that mounts into openings from 26 to 42 inches wide without hardware. It consists of two sliding panels composed of plastic mesh in a wood frame. A divided wood bar with notches and a locking clamp runs across the center of the panels and holds the gate in its desired position. The essential character of this model is imparted by the plastic mesh grate because of the primary role it plays in the functioning of the article as a gate.

You state that the plastic mesh is imported from the United States into Mexico. However, you do not indicate the country of origin of the resin or the precursor materials, nor do you specify where the resin was processed to form the mesh grate. You state that the wood is either imported from a foreign country or the United States. However, the cost figures included with your request show the wood as produced in foreign countries and not in the United States. The raw, un-sawn wood is transported to a milling facility where it is machined according to specifications. The cost figures show the United States and China as the countries of origin of the remaining components. The components are assembled to form the finished mesh gate and are packed into a carton and exported to the United States.

The applicable tariff provision for the wood framed plastic mesh gate will be 3925.90.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUS), which provides for builders’ ware of plastics, not elsewhere specified or included: other. The general rate of duty will be 5.3 percent ad valorem.

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 non-originating 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.

Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUSA General Note 12(b)(ii)(A). Each of the non-originating materials used in the production of such goods undergoes a change in tariff classification. The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements, including Regional Value Content requirements specified in General Note 12(t)(39)(10). The mesh gate is also subject to a Regional Value Content (RVC) requirement of 60 percent under the Transaction Value Method or 50 percent under the Net Cost Method as required under the rule applicable to the gate. Assuming the goods are eligible for preferential treatment under the NAFTA, the merchandise will be free of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

This ruling letter has not addressed the Regional Value Content (RVC) of the subject goods. If you desire a ruling regarding the RVC of your goods and their eligibility for NAFTA preferential treatment, provide the information noted in Section 181.93(b) of the Customs Regulations (19 CFR 181.93(b)), to the Director, International Trade Compliance Division, Headquarters, U.S. Customs and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229, along with a copy of this letter. You should verify the countries of origin of the raw wood, the plastic resin and the precursor materials of the resin and you should specify what processing was performed in the United States to form the plastic mesh.

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 Joan Mazzola at 646-733-3023.

Sincerely,

Robert B. Swierupski
Director,

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