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NY C87630

May 27, 1998

CLA-2-39:RR:NC:SP:221 C87630


TARIFF NO.: 3926.90.9880

Mr. Bill Jerome
H.A. & J.L. Wood, Inc.
Pembina, ND 58271

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of the "Quench-Mate Cool Jugs" from Canada; Article 509

Dear Mr. Jerome:

In your letter dated May 8, 1998, on behalf of Reliance Products, Canada, you requested a ruling on the status of the Quench Mate Cool Jugs from Canada under the NAFTA.

Drawings and descriptive literature of the Quench Mate Cool Jugs were submitted with your letter. The Quench Mate Cool Jugs are plastic water containers ranging in capacity from 1/2 gallon to 3 gallons. The jugs will be imported complete with a cover and carrying strap. The cover is said to be composed of 600D polyester material. The strap is said to be composed of a nylon web material. The plastic bottle is produced in Canada by an injection molding process. The cover and strap are both produced in China. The essential character of the product is imparted by the plastic container.

You suggest classification in subheading 3923.30.0090, which you claim specifically names the above product. However, the carboys, bottles and flasks of heading 3923 are limited to those that are used for the conveyance or packing of goods. Customs Headquarters has interpreted this to mean that only those carboys, bottles and flasks that are used to package and convey commercial goods are classified in heading 3923. Those carboys, bottles and flasks used for personal goods are not classified in heading 3923.

The applicable tariff provision for the Quench Mate Cool Jugs will be 3926.90.9880, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other articles of plastics, other. The general rate of duty will be 5.3 percent ad valorem.
You indicate that the nylon strap and the polyester cover were produced in China. You have not indicated the country of origin of the resin used in the injection molding process. However, the finished article may still be eligible for reduced duty under NAFTA since each of the non-originating materials used to make the "cool Jug" has satisfied the changes in tariff classification required under the HTSUSA General Note 12(t)/39.10. In this case, the product 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 articles classifiable in heading 3926, HTS. If 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.

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, we have not been able to determine whether the product is eligible for NAFTA treatment. If you wish to obtain a ruling on the eligibility of NAFTA treatment, please provide the information noted in section 181.93(b) of the Customs Regulations (19 CFR 181.93(b)). The information we need includes a cost breakdown of the goods and labor so that we can determine the Regional Value Content. Indicate the costs of the strap, cover and resin separately, and state the source country of all materials as well as the country in which any processing was done, as well as the cost of such processing. As provided in Section 181.94 of the Customs Regulations (19 CFR 181.94), you may submit this additional information within 30 days of the date of this notice. Please refer to our file number and address any supplemental letter to Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.

This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party. A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Joan Mazzola at 212-466-5580.


Robert B. Swierupski

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