The tariff classification and status under the North American Free Trade Agreement (NAFTA), of LCD television sets from Mexico; Article 509

NY L85978 July 6, 2005 CLA-2-85: RR: NC: 1:108 L85978 CATEGORY: Classification TARIFF NO.: 8528.12.7201 Mr. Steven B. Zisser Zisser Group 2297 Niels Bohr Court #114 San Diego, California 92154 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of LCD television sets from Mexico; Article 509 Dear Mr. Zisser: In your letter dated June 20, 2005, on behalf of ADI Systems (U.S.A.), you requested a ruling on the status of LCD television sets from Mexico under the NAFTA. It is indicated that the item in question is an LCD television receiver, denoted as model numbers PLTV20, PLTV26, PLTV32 and VV3S. It is indicated that each model will be manufactured, in Mexico, from non-originating parts: - The LCD panel composed of a reflection/deflection sheet, prism sheet, indium tin oxide sheet, diffusion sheets and a diffusion panel. It also contains a backlight unit with fluorescent lamps, lamp holders, reflection mirror and back panel and the LCD display glass subassembly. - A television chassis composed of the back and front cabinet and a stand, speakers, and a speaker cable and keypad cable, a remote control, IR mounted circuit board assembly and the main printed circuit board with the analog unit that amplifies and converts video and audio signals and analog signals to digital converts digital signals to pixels and audio control, channel selection, power, menu screen, light emitting diodes and inverts and a metal frame. Also the packaging of the VGA cable, warranty card, power cord, audio cable, RCA adapter, remote control, batteries and instruction manual. It is indicated that the specified models of the completed LCD television receivers are completed in Mexico for shipment to the United States. The applicable tariff provision for the specified models of LCD television receivers will be 8528.12.7201, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors: Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus: Color: with a flat panel screen: Other: Other. The general rate of duty will be 5 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. 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). Moreover, it is noted that the non-originating materials, not consisting of a flat panel screen assembly of HTSUSA provision 8529.90.5300, that are used to manufacture complete LCD television receivers, undergo the necessary tariff shift in accordance with General Note 12(t)(90). 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. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division