United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1995 NY Rulings > NY 806215 - NY 806349 > NY 806312

Previous Ruling Next Ruling
NY 806312

February 15, 1995

CLA-2-39:S:N:N6:221 806312


TARIFF NO.: 3926.90.9890; 3005.90.5090

Mr. Dale Martel
Trekware Developments Ltd.
1613 Passageview Drive
Campbell River, BC
Canada V9W 6L2

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of "Cool Ties," "Cool Bands" and "Cool Paks" from Canada; Article 509

Dear Mr. Martel:

In your letter dated January 9, 1995, you requested a ruling on the classification and status under the NAFTA of cooling articles from Canada.

The "Cool Tie" is a scarf-like item measuring approximately 38 inches in length and 2 inches in width, designed to be tied around the neck. The "Cool Band" is a headband measuring approximately 22 inches in circumference by 2 3/4 inches in width. It incorporates an elastic panel and is designed to be worn across the forehead. Both of these items are made of woven fabric and contain crystals of polyacrylamide. When the articles are soaked in water, the crystals absorb the liquid, expanding many times their original size. When the tie and band are placed on the skin, the coolness of the absorbed water and the action of evaporation of moisture from the skin cause a cooling effect.

The "Cool Paks" are rectangular pads containing the polyacrylamide crystals between two layers of woven fabric. The larger pad measures approximately 10 3/4 inches by 8 1/2 inches. The smaller measures approximately 9 1/2 inches by 4 1/4 inches. They are designed to be used as compresses to relieve aches and pains by cooling the affected area. The compresses may also be warmed in a microwave oven and used to provide a heat treatment to the area.

The applicable tariff provision for the "Cool Paks" will be 3005.90.5090, Harmonized Tariff Schedule of the United States (HTSUSA), which provides for wadding, gauze, bandages and similar articles...put up in forms or packings for retail sale for medical, surgical, dental or veterinary purposes, other. This provision is free of duty.

The applicable tariff provision for the "Cool Ties" and "Cool Bands" will be 3926.90.9890, HTSUSA, which provides for other articles of plastics, other. The general rate of duty will be 5.3 percent ad valorem.

You have stated that the polymer crystals are purchased from a supplier in the United States and the cloth material is purchased from suppliers in both Canada and the United States. However, you have not indicated whether these components originate in the United States and Canada. If the materials originate in the United States and Canada, then the "Cool Ties" and "Cool Bands," being made entirely in the territory of Canada using materials which themselves were originating, will satisfy the requirements of HTSUSA General Note 12(b)(iii). The merchandise will therefore be entitled to a 1.5 percent ad valorem rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

If the goods which you purchase from suppliers in the United States and Canada originate in countries other than the United States, Canada and Mexico, then the finished articles may still be eligible for reduced duty under NAFTA since each of the non- originating materials used to make the "Cool Ties" and "Cool Bands" has satisfied the changes in tariff classification required under the HTSUSA General Note 12(t)/39.10. In this case, the "Cool Ties" and "Cool Bands" will also be subject to a Regional Value Content (RVC) requirement of 60 percent under the Transaction Value Method or 50 percent under the Net Cost Method as required under the rule applicable to the ties and bands. Assuming the goods are eligible for preferential treatment under the NAFTA, the merchandise will be entitled to a 1.5 percent ad valorem rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

If the materials used to make the ties and bands are from a non-originating country and you desire a ruling regarding the Regional Value Content of your goods and their eligibility for NAFTA preferential treatment, please send the information noted in Section 181.93(b) of the Customs Regulations (19 CFR 181.93(b)) to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1301 Constitution Ave. N.W., Franklin Court, Washington, D.C. 20229, along with a copy of this letter. This information should include a breakdown showing the country of origin and cost for each material and showing the country of processing and cost for each of the manufacturing steps.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.


Jean F. Maguire
Area Director

Previous Ruling Next Ruling

See also: