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NY 812331





July 20, 1995

CLA-2-56:S:N:N6:351 812331

CATEGORY: CLASSIFICATION

TARIFF NO.: 5609.00.3000, 3926.90.9890

Mr. Kevin Patterson
Peak Products
P.O. Box 345
Banff, Alberta T0L 0C0
Canada

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of sunglass cords and plastic display stands from Canada; Article 509

Dear Mr. Patterson:

In your letter dated June 22, 1995 you requested a ruling on the status of sunglass cords and plastic display stands from Canada under the NAFTA.

You have enclosed four samples of "sunglass cords," which are two-foot lengths of braided cord, which we assume are of man- made fiber. Permanently attached to each end of these cords are two-inch long rubber tips, which are short tubes of rubber intended to secure the cord onto a pair of sunglasses. Each cord is doubled over and threaded through a small plastic locking device consisting of a plastic ball with a spring-operated button which locks the cord into a length set by the user. Two of the cords have a small plastic "stopper" at the point where the cord is doubled over, while the other two cords have a small metal ring instead. You have also enclosed a plastic display stand, which is a 15-inch tall plastic cylinder about one inch in diameter, mounted upright on a revolving base five inches in diameter. Mounted around the vertical part of the display are six plastic hooks from which the sunglass cords can be hung.

In a previous letter dated May 6, 1995 (to which you refer in your current letter), you indicated that the man-made fiber which makes up this cord is extruded in Vermont and braided in Canada. In your current letter you indicate that the various plastic and metal parts of the sunglass cords are manufactured in the United States. You further indicate that the plastic for the display stand is molded in Canada.

The applicable subheading for the sunglass cord will be 5609.00.3000, Harmonized Tariff Schedule of the United States (HTS), which provides for articles of yarn, strip or the like of heading 5404 or 5405, twine, cordage, rope or cables, not elsewhere specified or included; of man-made fibers. The general rate of duty will be 8.6 percent ad valorem.

Each of the non-originating materials used to make the sunglass cords has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/56. The sunglass cords will be entitled to a 2.7 percent ad valorem rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

The applicable subheading for the plastic display stand will be 3926.90.9890, HTS, which provides for other articles of plastics and articles of other materials of headings 3901 to 3914; other; other. The general rate of duty will be 5.3 percent ad valorem.

You have stated that the plastic display stand is molded in Canada. However, you have not indicated whether the resins originate in a NAFTA country. If the resins originate in the United States, Canada, or Mexico, then the display stand, 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 resins 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 display stands has satisfied the changes in tariff classification required under the HTSUSA General Note 12(t)/39.10. In this case, the display stand 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 display stands. 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 resins used to make the display stands 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.

Sincerely,

Jean F. Maguire
Area Director

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