The tariff classification and status under the North American Free Trade Agreement (NAFTA), of skis for a baby stroller from Canada; Article 509

NY 805622 Janaury 25, 1995 CLA-2-39:S:N:N6:221 805622 CATEGORY: Classification TARIFF NO.: 3926.90.9890 Ms. Linda Setlakwe BB-Ski Inc. 6830, Avenue du Parc, bureau 584 Montreal, Quebec H3N 1W7 Canada RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of skis for a baby stroller from Canada; Article 509 Dear Ms. Setlakwe: In your letter dated December 23, 1994, you requested a ruling on the status of skis for a baby stroller from Canada under the NAFTA. The skis, known as "BB-Skis," are composed of high density polyethylene. The skis are designed so that they can be attached to a baby stroller and easily attached to, and detached from, the wheels. The skis are to assist in pushing a stroller over snow. The applicable tariff provision for the skis will be 3926.90.9890, Harmonized Tariff Schedule of the United States (HTSUSA), which provides for other articles of plastics, other. The general rate of duty will be 5.3 percent ad valorem. You state that the skis are manufactured entirely in Canada. It is not clear, however, if all the materials are of Canadian, American and/or Mexican origin. If all the materials are of Canadian, American and/or Mexican origin, the skis are considered to be made from originating materials and qualify for NAFTA treatment. The rate of duty would then be 1.5 percent ad valorem. However, if any of the materials are of other than Canadian, American or Mexican origin, then two conditions must be met for the skis to be eligible for NAFTA treatment. First, each of the non- originating materials used to make the skis must satisfy the changes in tariff classification required under the HTSUSA General Note 12(t)/39. Second, the skis must meet the Regional Value Content (RVC) requirement of 60 percent under the Transaction Value Method or 50 percent under the Net Cost Method. In order to issue a ruling on the status under NAFTA, we need to know the origin and costs of all materials, the processing performed on each material in Canada, and the cost of such processing. This ruling is being issued under the provision of Part 181 of the Customs Regulations (19 C.F.R. 181). Because of insufficient information in your ruling request, Customs has not ruled on the eligibility of NAFTA treatment. If you desire a ruling regarding the eligibility of your goods for NAFTA preferential treatment, the information noted above and in Section 181.93(b) of the Customs Regulations (19 CFR 181.93(b)), must be provided to Customs. As provided for in Section 181.94 of the Customs Regulations (19 CFR 181.94), you may submit this additional information within 30 days of the date of this notice. Please refer to our file number and address any supplemental letter to Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1301 Constitution Ave. N.W., Washington D.C. 20229. A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction. This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party. Sincerely, Jean F. Maguire Area Director New York Seaport