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NY N003184





December 11, 2006

CLA-2-61:RR:NC:3:353

CATEGORY: CLASSIFICATION

TARIFF NO.: 6117.80.9540

Ms. Barbara DeBord
ETB Corporation
7504 Connelly Drive
Suite H-J
Hanover, MD 21076

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

Dear Ms. DeBord:

In your letter dated November 9, 2006, on behalf of 180’s LLC, Baltimore, MD, you requested a ruling on the status of an ear grip from Mexico under the NAFTA.

The submitted sample is a Product Number 70288 Black Basic Ear Grip, a type of earmuff, made of a plastic frame covered with knit 100% polyester fleece fabric. The edges have a 95% nylon, 5% spandex binding. The interior of the ear portion features a heat-retaining nonwoven fabric. The ear grip covers the ears and is attached to a fleece-covered frame that is worn across the back of the head.

In ruling NY M87374, dated October 27, 2006, the ear grip was classified in subheading 6117.80.9540.

You now request a determination on the country of origin and status under the NAFTA.

The manufacturing process is as follows:

Polyester fleece fabric is produced in Taiwan and shipped to Mexico. Nonwoven fabric is produced in China or Hong Kong and shipped to Mexico. Packaging is produced in China and shipped to Mexico. The label, binding and plastic frames are produced in the United States and shipped to Mexico. The aluminum rivets, UPC stickers and thread are produced in Mexico. In Mexico, the frame is riveted together, the fabrics are cut to shape and sewn to the frames together with the binding, labels are added and the ear grip is packaged.

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at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996.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

6101-6117 (1) If the good is not knit to shape and consists of two or more component parts, except for goods of subheading 6117.10 provided for in paragraph (e)(2) of this section, a change to an assembled good of heading 6101 through 6117 from unassembled components, provided that the change is the result of the good being wholly assembled in a single country, territory, or insular possession.

As there are two or more components and the ear grip is assembled in a single country, that is, Mexico, as per the terms of the tariff shift requirement, country of origin is conferred in Mexico.

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. The ear grip does not meet the requirements of General Note 12(t) 61.39 as the foreign-made knit fabric is classified in heading 6001 – 6006.

In addition, as the ear grip is both cut and sewn or otherwise assembled in Mexico it may be subject to a reduced rate of duty based upon the Tariff Preference Levels (TPL) established in Section XI, Additional U.S. Note 3 (b), up to the annual quantities specified in subdivision (g)(i)(A) of Note 3. Upon completion of the required documentation and up to the specified annual quantities, the Product Number 70288 Black Basic Ear Grip may be eligible for the preferential rate of Free.

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 Kenneth Reidlinger at 646-733-3053.

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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