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NY N017827

October 18, 2007



TARIFF NO.: 8306.29.0000

Mr. Charles Newton
MSR Customs Corporation
Peace Bridge Plaza
P.O. Box 230
Buffalo, New York 14213-0230

RE: The country of origin and tariff classification and status under the North American Free Trade Agreement (NAFTA), of coco-lined, wire plant baskets from Canada; Article 509

Dear Mr. Newton:

In your letter dated September 21, 2007, on behalf of Braun Nursery Ltd., you requested a ruling on the status of coco-lined baskets from Canada under the NAFTA. A sample was submitted.

The merchandise under consideration is a steel wire basket with a coconut fiber liner (item number 7HPF3OCOO0012OO). The basket measures approximately 12 inches in diameter by 8 inches in height. It is used to hold and display garden plants and flowers. The wire basket is made in Canada with wire of Canadian origin that is cut, shaped, and tack welded in Canada. The coco liner is made from fiber imported into Canada in rolls from Sri Lanka. It is cut to size and shape and inserted into the baskets in Canada.

The wire basket and coco liner make up a composite good. Your letter indicates that you believe it to be a functional article and, therefore, classification under subheading 7326.20.00, Harmonized Tariff Schedule of the United States (HTSUS), is requested. Explanatory Note 83.06(B) states that heading 8306 covers “articles which have no utility value but are wholly ornamental, and articles whose only usefulness is to contain or support other decorative articles or to add to their decorative effect.” It is the opinion of this office that the purpose of the coco-lined basket is to hold and support a garden plant and to enhance its decorative appearance. As such, the basket falls within the provisions of heading 8306, HTSUS.

The applicable tariff provision for the coco-filled wire basket will be 8306.29.0000, HTSUS, which provides for statuettes and other ornaments, of base metal, and parts thereof. The general rate of duty will be free.

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/.

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.

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 102.1 of the Customs Regulations sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of NAFTA country for marking purposes. Section 102.11 sets forth the required hierarchy for determining country of origin for marking purposes. Section 102.11(a) states that the country of origin of a good is the country in which:

(1) The good is wholly obtained or produced; The good is produced exclusively from domestic materials; or Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

Sections 102.11(a)(1) and 102.11(a)(2) do not apply. According to Section 102.20 for 8306-8307, a change must occur to heading 8306 through 8307 from any other heading. The foreign made coco lining undergoes the appropriate tariff shift, and therefore, section 102.11(a)(3) applies.

Based upon the above factors, we find that the country of origin of the coco- filled plant basket, pursuant to section 102.11(a)(3) of the Customs Regulations, is Canada.

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

(i) Goods that originate in the territory of a NAFTA party under the terms of subdivision (b) of this note and that qualify to be marked as goods of Canada under the terms of the marking rules set forth in regulations issued by the Secretary of the Treasury (without regard to whether the goods are marked), and goods enumerated in subdivision (u) of this note, when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn followed by the symbol “CA” in parentheses, are eligible for such duty rate, in accordance with section 201 of the North American Free Trade Agreement Implementation Act.”

The coco-lined plant basket does not qualify for preferential treatment under the NAFTA because its applicable tariff provision (8306.29.0000, HTSUS) does not include a corresponding rate of duty in the “Special” subcolumn followed by the symbol “CA.”

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 Barbara Kaiser at 646-733-3024.


Robert B. Swierupski

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