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NY F82939

February 22, 2000

CLA-2-39:RR:NC:SP:221 F82939


TARIFF NO.: 3926.90.9880

Mr. William Polkinhorn
Bill Polkinhorn, Inc.
2401 Portico Blvd.
P.O. Box 712
Calexico, CA 92231

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of insulating blankets from Mexico; Article 509

Dear Mr. Polkinhorn:

In your undated letter, received in this office on February 8, 2000, on behalf of the Boeing Company, you requested a ruling on the status of insulation blankets from Mexico under the NAFTA.

The insulation blankets are used for thermal insulation in aircraft. You have submitted two of the smaller sizes of blankets, measuring from approximately 8 ¼ inches to 8 ½ inches in length, 5 to 5 ½ inches in width, and ¼ to ¾ inch in thickness. The blankets are available in numerous sizes and shapes in accordance with the model of aircraft in which they will be used and the location within the aircraft where they will be used. These blankets are placed between the inner and outer walls of the aircraft. Each blanket consists of a sheet of insulating polyurethane foam enveloped in a thin layer of plastic sheeting which is folded over the insulating material and machine stitched in place. The sheeting material is reinforced with a crosshatched embedded nylon thread which adds strength and resiliency to the covering material. You have indicated that the value of the insulating material exceeds the cost of the other constituent materials combined. The essential character of the blanket is imparted by the foamed plastic insulating material. The polyurethane foam and the plastic sheeting are made in the United States, exported to Mexico on rolls, and cut to length and width in Mexico. The sheeting is stitched to the insulation material in Mexico. The polyester thread used to secure the plastic sheeting material around the insulating material is made in the United States.

The applicable tariff provision for the polyurethane foam insulating blankets will be 3926.90.9880, 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 polyurethane foam insulation material, the nylon reinforced thin sheeting material, and the polyester thread are manufactured in the United States. However, you have not indicated whether all of the materials used in the manufacture of these components are produced in the United States. If the nylon and polyester threads, the resins, and all the materials used to produce the threads and resins are manufactured in the United States, then the insulation blankets, 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 would then be free of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

If the threads, the resins, or the materials used to produce the threads and resins originate in countries other than the United States, Canada and Mexico, then the polyurethane insulation blankets may still be eligible for preferential duty treatment under NAFTA since each of the non-originating materials used to make the blankets has satisfied the changes in tariff classification required under the HTSUSA General Note 12(t)/39.10. In that case, the polyurethane insulation blankets 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 blankets. 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.

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 RVC of the subject goods. If the resin or the materials used to make the resin are from a non-originating country and you desire a ruling regarding the RVC of the polyurethane insulation blankets 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, 1300 Pennsylvania Ave. N.W., 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 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 212-637-7034.


Robert B. Swierupski

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