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NY L83461

April 21, 2005

CLA-2-63:RR:NC:N3:351 L83461


TARIFF NO.: 6307.90.9889

Karl F. Krueger
Danzas AEI Int’l
2660 20th St.
Port Huron, MI 48060

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of the Aquamat, Aquatray, and Aquapan from Canada; Article 509

Dear Mr. Krueger:

In your letter dated March 25, 2005, you requested, on behalf of your client Soleno Textiles, of Laval, Quebec, a ruling on the status of the Aquamat, Aquatray, and Aquapan from Canada under the NAFTA.

Each of the three products is constructed essentially the same except for size, and for the same purpose. They are designed for the irrigation of plants in a greenhouse or nursery. They consist of three or four layers. The top layer is a perforated polypropylene sheet. It is designed to be water permeable. The second layer is a polyester non-woven fabric that is designed to be water permeable but also to minimize evaporation. The third layer is a polyester needle-punched felt designed to absorb and hold water. The second and third layers are laminated together. The bottom layer of the Aquamat is a waterproof polyethylene sheet.

The Aquamat comes in 100-foot rolls of various widths and features “drip tapes” (water supply hoses) built in every two feet. The Aquatray and Aquapan lack these features because they are designed to be fitted into trays or pans for use on waterproof tables in greenhouses with overhead watering systems. These products are cut to length. The Aquatray you sent us is approximately 14” square; the Aquapan sample is 9” x 24”. They are finished on all four sides by heat-sealing the edges.

You state that all of the components originate in North America except the second layer, the polyester non-woven, which is from Korea or Indonesia. It is imported into Canada where it is laminated to polyester needle-punched felt.

The applicable tariff provision for the Aquamat, Aquatray, and Aquapan from Canada will be 6307.90.9889, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other made up textile articles, other. The general rate of duty will be seven percent ad valorem.

General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if--

(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or

(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--

(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or

(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or

(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the non-originating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--

(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or

(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.

These products all contain non-originating components, the polyester non-woven fabric. Thus, we must address whether the products qualify for NAFTA eligibility under General Note 12(b)(ii). To qualify under this provision, the non-originating material, the non-woven fabric, must undergo the requisite change in tariff classification required in General Note 12(t)/63. We refer to that tariff shift rule which states, at (4):

A change to headings 6304 through 6310 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6002, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties.

As the polyester non-woven fabric is classifiable in heading 5603, HTS, and is cut and assembled in Canada, this tariff shift is satisfied.

Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUSA General Note 12(b)(ii)(A). The goods will therefore be entitled to a free rate 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).

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 Mitchel Bayer at 646-733-3102.


Robert B. Swierupski

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