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NY N009265




April 18, 2007

CLA-2-73:RR:E:NC:N1:113

CATEGORY: CLASSIFICATION

TARIFF NO.: 7326.90.8587

Mr. Peter David Carter
Nameloc Enterprises Ltd.
Box 4673
Quesnel, V2J 3J9
British Columbia, Canada

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Coleman Inserts from Canada; Article 509

Dear Mr. Carter:

In your letter dated April 4, 2007, you requested a ruling on the status of Coleman Inserts from Canada under the NAFTA.

The merchandise is identified as Coleman Inserts. The inserts are small serrated bars that fit into feed rolls in sawmill and planer mill equipment. The inserts vary in length from 6 inches to 10 inches. The weight of an insert depends on the style and the length. The lightest insert weighs .12 of a pound and the heaviest weighs .24 of a pound. The inserts are hammered into the grooves in the feed roll and then wedged into place. There is another type of feed roll that has removable clamps that hold the inserts in place.

The Coleman Inserts are made of cold rolled steel that is manufactured in Eastern Canada. You state that you shear the steel to the appropriate lengths. You then place 120 pieces at a time into the milling machine to cut the teeth. The inserts are sent to a heat treater in Vancouver, Canada, to be case hardened. You indicate that you clean and pack the inserts in bundles of 50 with 300 pieces in a box. You state that all labor and materials employed in the manufacture of the Coleman Inserts will be Canadian.

The applicable subheading for the Coleman Inserts will be 7326.90.8587, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of iron or steel, other. The general rate of duty will be 2.9 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. ยง 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.

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)(i). 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 Ann Taub at 646-733-3018.

Sincerely,

Robert B. Swierupski
Director,

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