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NY F86509

May 10, 2000

MAR-2 RR:NC:SP:233 F86509


Mr. Karl F. Krueger
AEI Customs Brokerage Services
P.O. Box 5129
Southfield, MI 48086-5129


Dear Mr. Krueger:

This is in response to your letter dated April 17, 2000, requesting a ruling on the country of origin marking requirements for three desk chairs made in Canada from components which originate in Spain.

The chairs are models of the “Alhambra Tilter” and differ only in the arms. They are classified under 9401.30.8030, which provides for swivel seats with variable height adjustment: other: other. The Spanish components are classified under 9401.90.3500, which provides for parts: other, of rubber or plastics.

The Spanish parts involved are the inner back, outer back, plastic cap, inner seat, outer seat, arms, height adjustment and permanent contact control. Except for the arms, all of the other components do not vary from one chair style to the next.

Section 102.20 (Specific rules by tariff classification), Section XX, Chapters 94 through 96, 9401.10 - 9401.80 provides for “A change to subheading 9401.10 through 9401.80 from any other subheading outside that group, except from subheading 9403.10 through 9403.80, and except from subheading 9401.90 or 9403.90 when that change is pursuant to General Rule of Interpretation (GRI) 2(a).” GRI 2(a) provides: “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.”

Noting the addition in Canada of the chair base, gas lift, casters, fabric, labor and assembly, a tariff shift from 9401.90 to 9401.30 has occurred and is not pursuant to GRI 2(a). Thus the chair may be marked “Made in Canada.”

Regarding whether the chairs would qualify for preferential treatment under the NAFTA, we note GN 12(t)/94.1(B) which states:

A change to subheadings 9401.10 through 9401.80 from subheading 9401.90, whether or not there is also a change from any other chapter, provided there is a regional value content of not less than:

60 percent where the transaction value method is used, or 50 percent where the net cost method is used.

Thus, if the regional value content is reached, the chairs would qualify for preferential treatment under the NAFTA .

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 181).

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 Lawrence Mushinske at 212-637-7061.

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, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229.


Robert B. Swierupski

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