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NY 809784

May 31, 1995

CLA-2-67:S:N:N6:343 809784


TARIFF NO.: 6702.90.3500

Mr. Todd Fredette
A.N. Deringer Inc.
173 West Service Road
Champlain, NY 12919

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of an artificial tree from Canada; Article 509

Dear Mr. Fredette:

In your letter dated April 27, 1995, on behalf of Fine Arts Flowers, you requested a ruling on the status of a three foot Ficus Benjamina tree from Canada under the NAFTA.

You have submitted a sample of the three foot Ficus Benjamina Tree. You state that the nine branches which make up the tree (and presumably their man-made fiber leaves) originate in China. All the rest of the material making up the tree, the wood trunk, the pot, foam, rocks and moss as well as the packing are of Canadian origin.

The applicable tariff provision for the tree will be 6702.90.3500, Harmonized Tariff Schedule of the United States (HTS), which provides for artificial flowers, foliage, fruit and parts thereof; articles made of artificial flowers, foliage or fruit, of other materials, other, of man-made fibers. The general rate of duty will be 9 percent ad valorem.

The three foot Ficus Benjamina tree, having been produced in the territory of Canada from one or more non-originating materials which did not undergo the changes in tariff classification under HTSUSA General Note 12(t), because those materials are provided for under the HTSUSA as parts of the goods and the subheading for the goods provides for both the goods and its parts, will be considered as goods which originate in the territory of a NAFTA country, provided that all other non-originating materials undergo a change in tariff classification and the goods and non-originating materials are not both parts classifiable in the aforementioned heading or subheading.

The Regional Value Content (RVC) of such goods must be not less than 60 percent where the Transaction Value Method is used, or not less than 50 percent where the Net Cost Method is used. If a higher RVC requirement is applicable, the goods must satisfy such higher requirement. The goods must satisfy all other applicable requirements. Such goods 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.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). Because of insufficient information in your ruling request, Customs has not addressed the Regional Value Content (RVC) of the subject goods. If you desire a ruling regarding the RVC of your goods and their eligibility for NAFTA preferential treatment, 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.

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.


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