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NY L88689




November 29, 2005

MAR-2 RR:NC:N1:121 L88689

CATEGORY: MARKING

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

RE: Country of origin marking and tariff classification for a split flange under the North American Free Trade Agreement (NAFTA)

Dear Mr. Averill:

This is in response to your letter, dated November 1, 2005, on behalf of Rol Manufacturing Company, requesting the country of origin marking and tariff classification of a split flange-mounting bracket under the NAFTA.

The split flange is designed to serve as a mounting bracket for an automobile muffler or exhaust pipe. It consists of the following components:

One unfinished, steel flange made in Canada Two steel tubes, approximately 1 ½ inches long by ½-inch in diameter, made in Canada Two steel bolts made in China
Two steel washers made in China
Two steel nuts made in Canada

The above items are imported into Mexico. In Mexico the steel tubes are welded to the flange, one on the top and the other on the bottom. The flange is then cut into two pieces. Each split flange is individually packaged in a plastic bag with two bolts, nuts and washers. They are subsequently bulk packed in boxes of fifty.

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 134.45(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. 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 102.1 of the Customs 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 sets forth the required hierarchy for determining country of origin for marking purposes. Section 102.11(a) states that the country of origin of a good is the country in which:

(1) The good is wholly obtained or produced; The good is produced exclusively from domestic materials; or Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

Sections 102.11(a)(1) and 102.11(a)(2) do not apply. Both the unfinished flange and the finished, split flange are classified at 8302.30.3060, HTS. According to Section 102.20 for 8302.10-8302.60, a change must occur to subheading 8302.10 through 8302.60 from any other subheading, including another subheading within that group. Since the flange does not undergo the appropriate tariff shift, section 102.11(a)(3) does not apply.

Section 102.11(b) states that except for a good that is specifically described in the Harmonized System as a set, or is classified as a set pursuant to General Rule of Interpretation 3, where the country of origin cannot be determined under paragraph (a) of this section:

The country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good

When determining the essential character of a good under section 102.11, section 102.18(b) provides that only domestic and foreign materials that are classified in a tariff provision from which a change is not allowed shall be taken into consideration, and that in deciding among these materials, consideration is given to various factors, including the nature of the material or component, bulk, quantity, weight, value, and the role of a constituent material in relation to the use of the goods.

Based upon the above factors, we find that the unfinished flange is the single material that imparts the essential character to the split flange. Accordingly, the country of origin of the split flange, pursuant to section 102.11(b)(1) of the Customs Regulations, is Canada.

As provided in section 134.41(b), Customs Regulations (19 CFR 134.41(b)), the country of origin marking is considered conspicuous if the ultimate purchaser in the U.S. is able to find the marking easily and read it without strain.

With regard to the permanency of a marking, section 134.41(a), Customs Regulations (19 CFR 134.41(a)), provides that as a general rule marking requirements are best met by marking worked into the article at the time of manufacture. For example, it is suggested that the country of origin on metal articles be die sunk, molded in, or etched. However, section 134.44, Customs Regulations (19 CFR 134.44), generally provides that any marking that is sufficiently permanent so that it will remain on the article until it reaches the ultimate purchaser unless deliberately removed is acceptable.

An article is excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and section 134.32(d), Customs Regulations (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article. Accordingly, if Customs is satisfied that the article will remain in its container until it reaches the ultimate purchaser and if the ultimate purchaser can tell the country of origin of the split flange by viewing the container in which it is packaged, the individual split flange would be excepted from marking under this provision.

Split flanges, which are imported in containers that are marked in the manner described above, are excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and 19 CFR 134.32(d). Accordingly, marking the container in which the split flanges are imported and sold to the ultimate purchaser, in lieu of marking the article itself, is an acceptable country of origin marking for the imported split flanges provided the port director is satisfied that the article will remain in the marked container until it reaches the ultimate purchaser.

The proposed marking of imported split flanges by labeling the individual bags with the words, “Canada,” or “Product of Canada,” or “Made in Canada,” is conspicuously, legibly and permanently marked in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and is an acceptable country of origin marking for the imported split flanges.

The applicable subheading for the split flange will be 8302.30.3060, Harmonized Tariff Schedule of the United States (HTS), which provides for base metal mountings, fittings and similar articlesother mountings, fittings and similar articles suitable for motor vehicles; and parts thereof, of iron or steel, of aluminum or of zinc, other. The rate of duty is 2 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--
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

Since the bolts and washers were made in China, General Note 12(b)(i) does not apply. GN 102(t) Chapter 83, part 3 states that a change to headings 8302 through 8304 must take place from any other heading, including another heading within that group. Since the non-originating bolts and washers undergo the required tariff shift, GN 12(b)(ii) (A) applies and the split flange qualifies for NAFTA preferential treatment.

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 Barbara Kaiser at 646-733-3024.

Sincerely,

Robert B. Swierupski
Director,

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