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NY N017341

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October 2, 2007

MAR-2 RR:NC:N1:105

CATEGORY: MARKING

Mr. Donald Stein
Greenberg, Traurig LLP
800 Connecticut Avenue, NW
Washington, DC 20006

RE: THE COUNTRY OF ORIGIN MARKING OF UNIVERSAL BLOCK TRAYS; ARTICLE 509

Dear Mr. Stein:

This is in response to your letter dated September 17, 2007, for Avent, Inc, a wholly owned subsidiary of Kimberly-Clark, requesting a ruling on whether the proposed marking, Made in Mexico, is an acceptable country of origin marking for imported Universal Block Trays/Pain Management Product Kits, exported from Mexico. A sample was submitted with your letter for review.

You note that the marking of two other Avent kits, also put together in Mexico, are the subject of Ruling Requests H015361 and N015331, replies currently pending at Headquarters, but you believe that there is no need to forward this request to Headquarters.

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.

Per the label on the sample, each Universal Block Tray (UBT) will contain:

1 – 22g X 1.5 NEEDLE
1 – 30g X 1.5 NEEDLE
1 – 3cc PLASTIC SYRINGE L/L
1 – 10cc PLASTIC SYRINGE L/L
1 – 10cc PLASTIC CONTROL SYR L/L
4 – GAUZE PADS 4X4
1 – PREP TRAY
1 – NEEDLE STICK PAD
3 – PREP STICK
1 – DRAPE FENESTRATED 17” X 27”
1 – 20” MINIBORE EXTENSION LINE
1 – 50ml DRUG CUP
1 – SYRINGE LABELS

You explain, “The components are all sent to Mexico, where they are ‘kitted’ (assembled into a UBT). The product imported into the United States is the UBT.”

From the information in your bill of materials, it appears that 10 kits will be shipped from Mexico in a cardboard overbox. Each element will remain in its own compartment until removed by the medical staff for the procedure.

Since the kit will be exported from Mexico, we agree that the first issue is the classification of the imported kits. We note that, unlike the anesthesia trays in Headquarters Ruling Letter 962506, 12-17-99, the anesthesia that will be injected is not included in the import so classification in HTSUS 3004 cannot apply.

While you give no details concerning their functions, we basically agree with your proposed classifications of the elements of the kit if they were imported separately. Since we agree that none of the elements are classifiable in HTSUS 9018.90, the kits cannot be classified in 9018.90 as you propose.

This, of course, changes the starting point of the analysis of the country or origin of the kit in CR 102.20 from 9018.90 as in your letter.

We believe that, under HTSUS General Rule of Interpretation 3, the essential character for classification purposes of the kit is clearly either HTSUS’s 9018.31 or 9018.32 noting the relatively high cost and central role of the syringes and the needles in injecting the anesthesia into the patient, compared to the prep sticks (not classified in HTSUS 3924, as you propose, but in HTSUS 3926, which is equivalent for this country of origin determination), gauze pads (of 3005), minibore extension line (of 3917), plastic trays and poly bag (of 3923), drape and CSR wrap (of 6307), etc. We assume your proposed HTSUS headings, other than for the prep sticks (the only non-NAFTA item), are correct as shown above (from your BOM), and that all your proposed classification outside of HTSUS Chapter 90 are correct at least to the HTSUS Section level, which is sufficient for this country of origin determination. We note that the 30” by 30” CSR wrap is the only other item which is not made in the USA since it is made in Mexico.

Since CR 102.20 – q - 9018.20-9018.32 provides for “A change to subheading 9018.20 through 9018.32 from any other subheading, including another subheading within that group,” the classification issue between the two is moot for NAFTA country of origin purposes.

Per your listing, all the items classifiable, if imported separately, in HTSUS 9018.31 or 9018.32 are products of the USA. They are the only items that do not make the tariff shift so they are the only items that can be considered in determining the essential character of the kit for country of origin purposes per CR 102.18 - b.

Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported kit is a good of the United States for marking purposes, not Mexico, as you propose. Accordingly, it will not be required to have any country of origin marking pursuant to 19 U.S.C. 1304 when imported into the United States, and it cannot be marked “Made in Mexico” as you propose.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 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 J. Sheridan at 646-733-3012.

Sincerely,

Robert B. Swierupski
Director,

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