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NY M82020




May 1, 2006

CLA-2-85:RR:NC: 1:108 M82020

CATEGORY: CLASSIFICATION

TARIFF NO.: 8528.12.3250; 8528.12.3290

Mr. Jack D. Mlawski
Galvin & Mlawski
Attorneys at Law
470 Park Avenue South
Suite 200 – South Tower
New York, NY 10016-6819

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

Dear Mr. Mlwaski:

In your letter dated March 29, 2006, on behalf of JVC Industrial America, Inc., you requested a ruling on the status of color televisions from Mexico under the NAFTA.

The subject merchandise, based on the submitted information, consists of three non-high definition color television sets, a 27-inch Model AV-27F577 and two 32-inch Models AV-32F577 and AV-32WF47, which are produced in Mexico from originating and non-originating components.

These televisions with cathode-ray tubes (CRTs) are stated to incorporate the following: eight PCBs that consist of six combination PCBs, a Digital Tuner Module PCB and a main PCB. The PCBs are manufactured in Mexico from the following three bare printed circuit boards: a board for the combination PCB, a board for the two Digital Tuner Modules, and a board for the Main PCB. It is noted that the bare boards are originating components, excepting the bare board for the DTV-TU module.

It is further stated that a machine inserts and populates the bare circuit boards with electrical components including diodes, registers, capacitors, et cetera, all of which are non-originating. Moreover, other components including a tuner are then manually inserted into the semi-populated board. The tuner, which is manufactured in Thailand and found to be classifiable under subheading 8529.90.06, HTS, consists of a single printed circuit board housed in a steel shell from which a connected coaxial jack protrudes; it has video intermediate (IF) amplifying and detecting tuner, and audio detecting functions.

After the bare boards are populated and then soldered, the populated circuit boards are cut to create the following printed circuit boards: The combination PCB is divided into a CRT socket PCB, AV switch PCB, front control PCB, LED and Power SW PCB, USB PCB and Line Filter PCB. The board for the tuner modules, after the soldering process, is cut to create two digital tuner modules. One digital tuner module is used for each color television, while the other is used to make other color televisions. The AV terminal board, which consists of a plastic board made in Mexico, is inserted in the chassis base originating in Mexico.

The CRTs of the 27-inch television model are of Mexican origin and the front panel assemblies of these CRTs are fabricated in Mexico; the CRTs of the 32-inch models are of Mexican and US origin and the front panel assemblies of these originating CRTs are fabricated in Mexico and USA. The CRT is then assembled with the degaussing coil, originating from a NAFTA country or China, for insertion into the front cabinet, originating in Mexico, of these televisions. The chassis base is then inserted into the front cabinet containing the CRT/degaussing coil assembly. This merchandise, after being adjusted and inspected, is assembled with the rear cover of Mexican origin and then packed for final shipment.

The applicable tariff provision for the 27-inch color television set, Model AV-27F577, will be 8528.12.3250, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors: Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus: Color: Non-high definition, having a single picture tube intended for direct viewing (non-projection type), with a video display diagonal exceeding 35.56 cm: Other Other, with a video display diagonal: Exceeding 52 cm but not exceeding 77 cm. The general rate of duty will be 5 percent ad valorem.

The applicable subheading for the 32-inch color television sets, Models AV-32F577 and AV-32WF47, will be 8528.12.3290, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors: Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus: Color: Non-high definition, having a single picture tube intended for direct viewing (non-projection type), with a video display diagonal exceeding 35.56 cm: Other Other, with a video display diagonal: Exceeding 77 cm. The general rate of duty will be 5 percent ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

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--

(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.

The NAFTA rule of origin for products classified under subheading 8528.12.32 is set forth in General Note 12(t)/85.85. It states: A change to tariff items 8528.12.28 or 8528.12.32 from any other heading, except from tariff items 8529.90.43, 8529.90.46, 8529.90.49 or 8540.11.10 or more than one of the following:

(A) Tariff item 7011.20.10

(B) Tariff item 8540.91.15

Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). Moreover, the non-originating materials used to manufacture the subject color television sets undergo the necessary tariff shift as provided for in General Note 12(t) 85.85. The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

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 Michael Contino at 646-733-3014.

Sincerely,

Robert B. Swierupski
Director,

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