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NY M86511




September 28, 2006

CLA-2-85:RR:NC:1:108 M86511

CATEGORY: CLASSIFICATION

TARIFF NO.: 8528.12.7201

Ms. Ana Hernandez
Customs Broker
P.O Box 3026
Calexico, CA 92232

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

Dear Ms. Hernandez:

In your letter dated August 14, 2006, on behalf of Daewoo Electronics, Inc. you requested a ruling on the status of LCD and Plasma televisions from Mexico under the NAFTA.

The subject merchandise, based on the submitted information, consists of the following:

LCD flat panel television sets with 17-inch (43.18 cm), 20-inch (50.8 cm) and 32-inch (81.28 cm) screen diagonal measurements in regard to models DLN-17D3SHS, DLN-20D3AHS, and DLX-32D1SMSB, respectively. It is indicated that each model will be manufactured in Mexico from such non-originating components as the printed wire boards, the LCD panels, cables, cords, connectors, stands and speakers. It is stated that the boards, which are already populated, are assembled in Mexico to the LCD panels.

Plasma televisions (model number DPX-42D1NMSB) that have a 42-inch (106.68 cm) screen diagonal and are stated to have a flat display glass panel subassembly with no components or printed circuit boards.

You state that this merchandise should then be classified under subheading 8528.12.6801, 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 recoding or reproducing apparatus: Color: With a flat panel screen: Other: With a video display diagonal not exceeding 34.29 cm. However, since the video display diagonal for each model exceeds 34.29 cm, consideration of classification under this subheading is precluded.

The applicable tariff provision for the LCD television sets will be 8528.12.7201, 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: With a flat panel screen: Other: Other. 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—

(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; or
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.

Based on the facts provided, the LCD televisions qualify for NAFTA preferential treatment because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). Moreover, it is noted that the non-originating materials (not consisting of a flat panel screen assembly of HTSUS provision 8529.90.5300) which are used to manufacture complete LCD television sets, undergo the necessary tariff shift in accordance with General Note 12 (t)/ 85.90. The LCD televisions will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

Your inquiry does not provide enough information for us to give a classification ruling on the plasma television, model number DPX-42D1NMSB. Your request for a classification ruling should include a submission in regard to the following:

Please explain in detail the exact condition of the plasma screen assembly as entered into Mexico; Please provide schematics and/or pictorial representations of this condition; Please provide a complete listing of all the non-originating components in Mexico; Please provide a detailed explanation of the assembly procedures conducted in Mexico; Please explain in detail whether the plasma screen assembly contains both drive and control electronics and explain your understanding of both; Please explain which PCBs comprise both the drive and control electronics as they pertain to the panel assembly only, not the entire television; Please explain in detail how the specified PCBs perform the functions of drive and control electronics.

When this information is available, you may wish to consider resubmission of your request. We are returning any related samples, exhibits, etc. If you decide to resubmit your request, please include all of the material that we have returned to you.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

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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