The tariff classification and status under the North American Free Trade Agreement (NAFTA), of helicopter covers from Canada; Article 509

NY H82236 July 3, 2001 CLA-2-63:RR:NC:TA:351 H82236 CATEGORY: Classification TARIFF NO.: 6307.90.9989 Mr. Robert Gaydo Senior Trade Advisor Deringer Logistics Consulting Group 6930 Metroplex Drive Romulus, MI 48174 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of helicopter covers from Canada; Article 509 Dear Mr. Gaydo: In your letter dated May 22, 2001, on behalf of your client, H.D. Brown Enterprises, Ltd., (hereinafter Brown) of St. George, Ontario, you requested a ruling on the status of helicopter covers from Canada under the NAFTA. Your letter was a follow-up to your letter of April 13, which we had to return for more information. You have submitted the necessary information in a supplemental letter dated June 28. The helicopter covers are manufactured of polyethylene in Canada by Brown to specifications supplied by the purchasers, a company in Florida. Brown imports polyethylene fabric from Loretex Corp. of Guilderland Center, New York. According to the letter from Loretex, the polyethylene fibers are extruded and the polyethylene yarns are spun and the fabric is woven in New York. The applicable tariff provision for the helicopter covers will be 6307.90.9989, 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. You have not told us where the polyethylene, which is extruded to form the fibers which are spun into the yarns, is produced. If the polyethylene is manufactured in the U.S., the helicopter covers will be considered to be wholly obtained or produced entirely in the territory of the U.S. and will meet the requirements of HTSUSA General Note 12(b)(i). However, even assuming the polyethylene to be from outside the NAFTA territories, the helicopter covers have satisfied the changes in tariff classification required under HTSUSA General Note 12(t)/63. Thus, under either set of circumstances, the helicopter covers will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. We must now determine the country of origin of the helicopter covers for purposes of country of origin marking. On December 8, 1994, the President signed into law the Uruguay Round Agreements Act. Section 334 of that Act (codified at 19 U.S.C. 3592) provides new rules of origin for textiles and apparel entered, or withdrawn from warehouse, for consumption, on and after July 1, 1996. On September 5, 1995, Customs published Section 102.21, Customs Regulations, in the Federal Register, implementing Section 334 (60 FR 46188). Thus, effective July 1, 1996, the country of origin of a textile or apparel product shall be determined by sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21. Paragraph (c)(1) states that "The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced." As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable. Paragraph (c)(2) states that "Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:" Paragraph (e) in pertinent part states that "The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section": HTSUS Tariff shift and/or other requirements 6307.90 The country of origin of a good classifiable under 6307.90 is the country, territory or insular possession in which the fabric comprising the good was formed by a fabric-making process. As the fabric that comprises the helicopter covers was formed in a single country, that is, the United States, as per the terms of the tariff shift or other requirement, the country of origin for purposes of marking is the U.S. The covers are articles of U.S. origin. They are not subject to the country of origin marking requirements of 19 U.S.C. §1304. Whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin, or the phrase you suggest (“Cut and sewn in Canada from U.S. textiles”) is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 6th and Pennsylvania Avenue, N.W., Washington, D.C. 20508 on the propriety of proposed markings indicating that an article is made in the U.S. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party. 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 212-637-7086. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division