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

NY M80218 February 10, 2006 CLA-2-85: RR: NC: 1:108 M80218 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 televisions from Mexico; Article 509 Dear Mr. Zisser: In your letter dated January 23, 2006 you requested a ruling on the status of LCD televisions from Mexico under the NAFTA. The items in question are LCD flat panel television sets of 32 and 37-inch screen diagonal measurement. The various 32-inch screen size are denoted as models A1A3, C1P1, C2P1, C3P1, D1P1, C1M1, C2M1, C3M1 and D1M1. The various 37-inch screen sizes are denoted as models C1P1, C2P1, C3P1 and D1P1. Each of the models for the various screen sizes is the same except for varying interface features and overall dimensions. It is indicated that each model will be manufactured, in Mexico, from non-originating parts. The LCD panel unit will be from Taiwan and the television chassis frame will be from China. The television sets will be fully manufactured in Mexico from all the necessary non-originating parts. The applicable tariff provision for the LCD television sets will be 8528.12.7201, Harmonized Tariff Schedule of the United States (HTSUS), 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. 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 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 not consisting of a flat panel screen assembly of HTSUS provision 8529.90.5300, that are used to manufacture complete LCD television sets, undergo the necessary tariff shift in accordance with General Note 12 (t)/ 85,90. 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