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NY R01595

April 7, 2005

CLA-2-91:RR:NC:MM:114 R01595


TARIFF NO.: 9101.11.40

Mr. Eduardo Rais Habif, Sr.
Eurojoyas, S.A. De C.V.
Pino No. 343 Bodegas 38-A Y 39-A
Col. Santa Maria La Ribera
Mexico City, Mexico 06400

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

Dear Mr. Habif:

In your letter dated March 8, 2005 you requested a ruling on the status of a wrist watch from Mexico under the NAFTA.

The wrist watch is model RW 3001. It has a gold watch case and a gold watch band. The movement is a battery operated quartz movement containing one jewel.

In your letter, you indicate that the watch case and the watch band are made in Mexico and that the case and band comprise 95.5 percent of the total cost of the watch. The quartz movement, obtained from a non-NAFTA country, comprises 4 percent of the total cost of the watch; the watch battery, obtained from a non-NAFTA country, comprises ½ of 1 percent of the total cost of the watch.

The applicable tariff provision for the wrist watch, model RW 3001 will be 9101.11.40, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for wrist watches, pocket watches and other watches, including stop watches, with case of precious metal or of metal clad with precious metal: wrist watches, electrically operated, whether or not incorporating a stop watch facility: with mechanical display only: having no jewels or only one jewel in the movement. The general rate of duty will be 51cents each plus 6.25 percent on the case and strap, band or bracelet plus 5.3 percent on the battery.

Based on the information provided in your letter, the watch case and the watch band are products of Mexico. The watch battery satisfies the tariff classification change required for HTS 9101 under Note 12 (t)/91(A), HTS. The watch movement does not satisfy the tariff classification change required for HTS 9101 under Note 12 (t)/91 (A) or (B), HTS, however, the value of the movement is less than seven percent of the transaction value of the watch adjusted to an FOB basis. In accordance with General Note 12(f)(i), HTS, the de minimis rule will apply to the watch movement. The wrist watch will therefore 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).

For your information, if you require a ruling on the marking of the watch under the NAFTA marking rules and under the Special Marking Requirements for Watches as specified in Additional U.S. Note 4 to Chapter 91, HTS, please submit a written request for a marking ruling and furnish a sample of the marked watch in its condition as it will be imported into the United States.

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 Barbara Kiefer at 646-733-3019.


Robert B. Swierupski

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