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NY 813862

September 8, 1995

CLA-2-54:S:N:N6:351 813862


TARIFF NO.: 5404.90.0000

Mr. Scott D. Johnson
572 South Fifth St. #2
Pembina, North Dakota 58271

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of US-made polyester film cut to -inch width in Canada; Article 509

Dear Mr. Johnson:

In your letter dated August 18, 1995 on behalf of K.T. Industries Inc., you requested a ruling on the status of polyester strip from Canada under the NAFTA.

You have indicated that K.T. Industries purchases 36-inch wide polyester film made in the United States, and sends it to Canada where it is slit into -inch wide strips. Successive lengths are spliced together and packaged on rolls for shipment to the United States. This material is used for cigarette packaging.

The applicable tariff provision for the polyester strip will be 5404.90.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for strip and the like of synthetic textile materials of an apparent width not exceeding 5mm. The general rate of duty will be 4.6 percent ad valorem.

Each of the non-originating materials used to make the polyester strip has satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/54. The polyester strip 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.

You have also stated that "it is of our opinion, that perhaps the service may be considered as an 'operation incidental to the assembly process' and therefore qualify for the provisions of partial duty exemption as provided in tariff 9802.00.80." The cutting of material to width or pattern to achieve a narrower or differently shaped product is not an assembly operation, nor is it considered an "alteration" under tariff item 9802.0050.

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.

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, Office of Regulations and Rulings, U.S. Customs Service, 1301 Constitution Ave. N.W., Franklin Court, Washington, D.C. 20229.


Jean F. Maguire
Area Director

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