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NY 818198

February 2, 1996

CLA-2-39:RR:NC:TP:221 818198


TARIFF NO.: 3926.90.9890

Mr. P.G. Walker
P.O. Box 2656
Ponte Vedra Beach, FL 32004

RE: The tariff status under the North American Free Trade Agreement (NAFTA), of bottle caps from Mexico; Article 509

Dear Mr. Walker:

In your letter dated December 17, 1995, which was received in this office on January 5, 1996, you requested a ruling on the status under the NAFTA of bottle caps from Mexico. You have previously received a ruling classifying the caps in subheading 3923.50.0000, Harmonized Tariff Schedule of the United States (HTSUSA).

You indicate that the resin used to produce the bottle caps is manufactured in Mexico and the molding and fabrication is done in Mexico. If all the materials used to produce the resin originate in Mexico, then the bottle caps, being made entirely in the territory of Mexico using materials which themselves were originating, will satisfy the requirements of HTSUSA General Note 12(b)(iii). The merchandise will therefore be free of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

If the materials used to produce the resin 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 bottle caps has satisfied the changes in tariff classification required under the HTSUSA General Note 12(t)/39.9. In this case, the bottle caps 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 caps. Assuming the goods are eligible for preferential treatment under the NAFTA, the merchandise will be free of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

If the materials used to make the resin 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.


Roger J. Silvestri

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