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NY N004033

December 13, 2006



TARIFF NO.: 8529.90.4300

Ms. Gail T. Cummins
Sharretts, Paley, Carter & Blauvelt, P.C. 75 Broad Street
New York, NY 10004

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

Dear Ms. Cummins:

In your letter dated November 17, 2006, on behalf of Sanyo Manufacturing Corporation, you requested a ruling on the status of two TV chassis from Mexico under the NAFTA.

The subject merchandise is two electronic chassis, identified as model numbers NA7E and VB9H, for two SDTV television receivers in noting that model number VB9H is designed for larger televisions, while model number NA7E is for smaller televisions. It is stated that the chassis are produced from the following three major assemblies and subassemblies:
identical digital/analog tuners, which are used by both models.
an “Integrated System on Board” (ISB), being the same small printed circuit board assembly used by both models, that contains video intermediate amplifying and detecting systems for digital signals, tuner control systems for digital signals, and a channel selector assembly for digital signals.
a block of components and apparatus, incorporated in each chassis, that are assembled to a main printed circuit board, which constitutes the balance of the chassis; these blocks, being physically dissimilar but functionally equivalent with respect to each model, contain video intermediate amplifying and detecting systems, video processing and amplification systems, tuner control systems, a channel selector assembly, some of the audio detection and amplification systems, and some of the synchronizing and deflection circuitry.

It is noted that the above blocks do not contain such components as the deflection yoke (an integral part of the deflection circuitry), the degaussing coil, the picture tube (CRT), and the speakers. The tuners, ISBs, and blocks will be assembled into the finished chassis in Mexico.

It is stated that neither the tuners nor the ISBs will be NAFTA-originating articles and many of the parts mounted on the chassis are obtained from non-NAFTA countries. Furthermore, in regard to NAFTA eligibility, neither the tuners, the ISBs, nor the blocks will be wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States, or produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials.

In determining the classification of this merchandise, this office will be guided by the decisions in HQ 955743 as well as NY Rulings K83041 and K82594.

The applicable tariff provision for these two SDTV chassis will be 8529.90.4300, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528: Other: Combinations of parts specified in additional U.S. note 10 to this chapter: Subassemblies, for color television receivers, containing two or more printed circuit boards or ceramic substrates with components assembled thereon, except tuners or convergence assemblies: Entered with components enumerated in additional U.S. note 4 to this chapter. The general rate of duty will be 4 percent ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

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.

Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). Moreover, it is noted that the non-originating materials that are used to complete the SDTV chassis undergo the necessary tariff shift in accordance with General Note 12 (t) 85.97. 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 Michael Contino at 646-733-3014.


Robert B. Swierupski

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