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

N276309 July 1, 2016 CLA-2-63:OT:RR:NC:N3:351 CATEGORY: Classification TARIFF NO.: 6307.90.9889 Mrs. Constanza Marquez Privada La Haba 1 Colonia Agricola Lazaro Cardenas Metepec, Mexico 52148 Mexico RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of hair ribbons from Mexico; Article 509 Dear Mrs. Constanza: In your letter dated June 1, 2016, you requested a ruling on the status of a hair ribbon from Mexico under the NAFTA. You submitted a photograph of a knotted fringe hair ribbon. The hair ribbon is made from a woven fabric composed of 80% rayon and 20% polyester handmade on a loom with hand tied knotted fringe ends. The rayon yarn is produced in Mexico, the polyester yarn is produced in China and both foreign produced man-made yarns are used to manufacture the fringe hair ribbon in Mexico. Because the ends of the ribbon are frayed and then knotted by hand, this product is considered to be “made up” as that term is defined in Note 7(d) to Section XI, Harmonized Tariff Schedule of the United States (HTSUS). This office previously determined classification for hair ribbons to be 6307.90.9889, HTSUS and country of origin for marking purposes is Mexico. See NY Ruling N274968. NAFTA - LAW AND ANALYSIS: 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; or (iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or (iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for “parts” and used in the production of such goods does not undergo a change in tariff classification because-- (A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or (B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts, provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note. For goods classified in heading 6307, General Note 12/63.4 requires: A change to headings 6304 through 6310 from any other chapter, except from headings 5106 through 5113, 5204 through 5212, 5307 through 5308 or 5310 through 5311, chapters 54 through 55, or headings 5801 through 5802 or 6001 through 6006, provided that the good is both cut (or knit to shape) and sewn or otherwise assembled in the territory of one or more of the NAFTA parties. HOLDING: Yarn is in classified in chapters 54 or 55, therefore based on the facts provided, the hair ribbons described above do not qualify for NAFTA preferential treatment, because they will not meet the requirements of HTSUS General Note 12(t)63.4. 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 Adleasia Lonesome at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division