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NY A87768

October 11, 1996

CLA-2-40:RR:NC:TP:350 A87768


TARIFF NO.: 4010.12.5000; 4010.12.5500

Mr. D.M. Beauregard
A.N. Deringer, Inc.
P.O. Box 284, Route 89
Highgate Springs, VT 05460

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of traction belts for plastic extrusion machinery, from Canada.

Dear Mr. Beauregard:

In your letter dated September 12, 1996, on behalf of Metaplast Ltd., Lachine, Quebec, Canada, you requested a ruling on the status of traction (conveyor) belts from Canada under the NAFTA.

You write that the traction belt is an integral part of the belted Haul-Off, mod: PB4-C series machine and that this machine is classified under HTS subheading 8477.59. The Haul-Off is equipped with two (2) belts, one on top and one on the bottom, together, these two belts grasp the profile as it exits the extruder and provides the pulling force that maintains the shaped profile in constant dimensions.

The traction belt, as you state, is made from a poly "V" belt which is then covered with a relatively thick layer of one of four vulcanized rubber compounds: 1)Pure Gum Rubber, 2)Red EPDM, 3)White EPDM, 4)Neoprene sponge, by Raimondo Rubber of Montreal. The poly "V" belt, itself is produced in either France or England and is a multi "V" belt or belting composed of vulcanized rubber with polyester tensile cords and a woven textile top cover of a 60/40 polyester cotton blend (confirmed in a phone conversation with Mr. Barth). You purchase the poly "V" belts from Jason Industrial of Canada then ship them to Raimondo to be covered with the appropriate rubber compound. The overall thickness of the submitted samples range from approximately 13 mm to 20 mm, of which about half or less of the thickness is of the poly "V" component.

The "V" belting imported into Canada by Jason, probably is in the form of a sleeve to be further cut or slit to size per your order. Such belting is classified under subheading 4010.29.

The added rubber is for a pliable gripping surface and the belt now functions as a conveyor belt. However, classification is still under Heading 4010. You list 12 model numbers of belts, ten of which do not exceed 20 mm in width, two of the models do exceed 20 mm in width. The contact lengths and widths range from 241 x 50 mm (9.5" x 2") to 914 x 304 mm (36" x 12").

The finished conveyor belts are composed of a blend of vegetable and man-made fibers of which the man-made fibers predominate by weight. Model numbers PB8-CL and PB12-CL are over 20 cm in width and the remaining ten PB2-9.5 THROUGH PB6-CL do not exceed 20 cm.

You furnish cost data information and write that the Canadian value added contents comprise more than 60% of the actual cost and thus are of the opinion that the belts should qualify for NAFTA.

General Note 12(t)/40. SR5 indicates that NAFTA consideration for these belts is predicated on a tariff shift and not a value added concept. Specifically, this note stipulates that in order to qualify for NAFTA consideration, you must have "a change to headings 4010 through 4011 from any other heading, except from headings 4009 through 4017". Such is not the case here, therefore, NAFTA consideration is precluded. Accordingly, the applicable tariff provision for these belts will be (if over 20cm in width) subheading 4010.12.5000, Harmonized Tariff Schedules of the United States Annotated (HTSUSA), which provides for conveyor or transmission belts or belting, of vulcanized rubber, conveyor belts and belting, reinforced only with textile materials, with textile components in which man-made fibers predominate by weight over any other single textile fiber, of a width exceeding 20 cm. The general rate of duty is 8 percent ad valorem.

If the belts are of a width not over 20cm, classification falls in subheading 4010.12.5500, HTS. The general rate of duty is 7.4 percent ad valorem. 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.

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, C.C. 20229. Sincerely, Roger J. Silvestri Director National Commodity Specialist Division

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