AFR of Protest No. 3004-96-100611; APTA; Canadian article; NAFTA; originating good

HQ 546515 July 7, 1999 VAL RR:IT:VA 546515 CRS CATEGORY: Valuation Port Director U.S. Customs Service 990 Pacific Highway Blaine, WA 98230 RE: AFR of Protest No. 3004-96-100611; APTA; Canadian article; NAFTA; originating good Dear Sir: This is reply to your memorandum of October 22, 1996 (your file PRO-NG:B) under cover of which you forwarded the above referenced application for further review, submitted by Norman G. Jensen, Inc. on behalf of protestant Garry Wood, dba Classic Car Corner Ltd., concerning the eligibility of certain imported motor vehicles for duty free treatment under the Automotive Products Trade Act (APTA). We regret the delay in responding. FACTS: The protested entries consist of two motor vehicles imported from Canada which protestant contends are eligible for duty free entry under APTA. No documentation has been submitted by the protestant to support his claims for duty free treatment. In particular, no documentation has been provided to support protestant’s position that the imported motor vehicles qualify as Canadian articles. The vehicles that are the subject of the instant protest consist of two Jeep Wranglers, and were entered under subheading 8703.24.0090, HTSUS, and subheading 8703.23.0090, HTSUS. ISSUE: The issue presented is whether the imported motor vehicles described above qualify for duty free entry under the APTA. LAW AND ANALYSIS General Note (GN) 5, Harmonized Tariff Schedule of the United States (HTSUS) provides in relevant part that motor vehicles and original motorvehicle equipment which are Canadian articles and fall in provisions for which the rate of duty "Free (B)" appears in the "Special" subcolumn of the HTSUS may be entered free of duty. The term "Canadian article" means an article which originates in Canada, as defined in general note 12 of the HTSUS. GN 5(a)(I). Accordingly, in order to be entered free of duty under the APTA an imported motor vehicle must qualify as an originating good under GN 12. Under GN 12, HTSUS, goods imported into the customs territory of the United States are eligible for the tariff treatment set forth in the HTSUS as "goods originating in the territory of a NAFTA party" if, inter alia, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in GNs 12(r)-(t) or where the goods satisfy the applicable requirements of GNs 12(r)-(t) where no change in classification is required. GN 12(b)(ii). Under the applicable rule of origin specified in GN 12(t)/87.7, the non-originating materials used in the production of the subject motor vehicles must undergo a change in classification and the vehicles must have a regional value content of not less than fifty percent under the net cost method. The protestant has not submitted any information in respect of either of these requirements. Based on the information presented, the vehicles do not qualify as originating goods under GN 12(t) and thus are not entitled to duty free entry under the APTA. HOLDING: The information presented is insufficient to determine whether the imported vehicles are Canadian articles as defined in GN 5(a)(I) of the HTSUS. In conformity with the foregoing, the protest should be denied in full. In accordance with section 3A(11)(b), Customs Directive 099 3550065, dated August 4, 1993, this decision should be mailed by your office to the protestant no later than sixty days from the date of this letter. Any reliquidation of the entry in accordance with this decision must be accomplished prior to the mailing of the decision. Sixty days from the date of this decision the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and to the public via the Diskette Subscription Service, the Freedom of Information Act and other public access channels. Sincerely, Thomas L. Lobred Chief, Value Branch