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NY K87252

July 15, 2004

MAR-2 RR:NC:N1:105 K87252


Ms. Jonette Johannsen
FedEx Trade Networks Transport & Brokerage P.O. Box 269
Sweetgrass, MT 59484


Dear Ms. Johannsen:

This is in response to your letter dated June 22, 2004, forwarding Traci Stekl’s letter of March 25, 2004, requesting a ruling on behalf of PowerFloat, D & B Equine Enterprises Inc. of Calgary, Canada, on whether a single country of origin, Canada, is an acceptable country of origin marking for imported corded and cordless PowerFloat Kits. A marked sample was not submitted with your letter for review.

The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.

Section 134.45(a)(2) of the regulations, provides that "a good of a NAFTA country may be marked with the name of the country of origin in English, French or Spanish. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules.

The main item in the kits is a corded or a cordless hand drill with a very long shaft to enable a veterinarian to reach a horse’s back teeth. Each kit also includes a grinding wheel, a mouth gag, instructional video, etc, all in a rigid carrying case with some kind of foam lining.

Since the kit will be exported from Canada, we first must determine its classification to begin to apply the rules in CR 102.

Both kits are sets classified in Harmonized Tariff Schedule heading 9018.41.00, which provides for dental drill engines, whether or not combined on a single base with other dental equipment, and parts and accessories thereof.

You have not provided all the information necessary to apply CR 102.11 and CR 120.20. For example, you have provided no cost information, which is needed to determine if the De Minimis rule in 102.13 applies to some components and which is an important factor in determining essential character.

However, while some components appear to be unaccounted for, the only countries of origin you indicate apply are Canada, Mexico, and USA. We understand that to be your claim for all elements and components of the kits.

On that basis, the kits are clearly entitled to NAFTA preference since they have no non-NAFTA content.

You have provided enough information for it to be clear that, if you provided all the requisite information, the application of CR 102.11 would not result in either Mexico or USA as the single country of origin of the kits, although it is possible that Canada might be.

If Canada is not the single country of origin under CR 102.11, it is clearly “the last NAFTA country in which the good underwent production other than minor processing” since the complex assembly of the hand drills takes place in Canada, noting CR 102.19. Therefore, assuming you will provide a Certificate of Origin per CR 181.11, a single country of origin of Canada would apply to both kits under either theory.

Therefore, your proposed marking of Canada, without reference to other countries, is an acceptable country of origin marking for both imported kits, assuming that the marking is conspicuous, legible and permanent in satisfaction of the marking requirements of 19 U.S.C. 1304 and 19 CFR Part 134 and that the facts are as stated above.

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 J. Sheridan at 646-733-3012.


Robert B. Swierupski

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