The tariff classification, status under the North American Free Trade Agreement (NAFTA), and country of origin marking of laminating pouch kits from Mexico; Article 509

NY G89385 April 25, 2001 MAR-2 RR:NC:SP:221 G89385 CATEGORY: MARKING Mr. Michael A. Capuzzi 25 South Washington Suite 104 Naperville, IL 60540 RE: The tariff classification, status under the North American Free Trade Agreement (NAFTA), and country of origin marking of laminating pouch kits from Mexico; Article 509 Dear Mr. Capuzzi: This is in response to your letter dated March 27, 2001, on behalf of General Binding Corporation, requesting a ruling on the classification and country of origin marking of a laminating pouch kit. The laminating pouch kit contains 25 pouches, 25 loops and one paperboard carrier sheet. The pouches measure 2 ½ inches by 4 ¼ inches, and are designed to seal small flat articles such as business cards, ID cards and address cards. The plastic loops are used to attach the laminated card to a backpack, luggage or the like. The carrier sheet is used to hold the laminate pouch while it is inserted through the laminating machine. The pouches, loops and carrier sheet comprise a set, with the essential character imparted by the pouches. The applicable tariff provision for the laminating pouch set will be 3926.90.9880, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other articles of plastics, other. The general rate of duty will be 5.3 percent ad valorem. The plastic luggage loops are manufactured in China. The paperboard carrier sheet is manufactured in Korea. The laminating pouches and the packaging material are manufactured in the United States. The components are shipped to Mexico to be packaged together for retail sale. Neither the pouches nor the loops undergo a tariff shift. The carrier sheet undergoes a tariff shift merely by reason of simple packaging. The merchandise does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/39.10, HTSUSA. You suggest marking the retail package with the phrase, "Components made in China and Korea.” The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations. Section 134.1(b) of the regulations defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. Part 102 of the regulations sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations sets forth the required hierarchy for determining country of origin for marking purposes. Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the imported laminating pouch set is a good of Korea, China and the United States for marking purposes. Since articles of U.S. origin need not be marked with the country of origin, your proposed marking to indicate the origin of the Korean and Chinese components is acceptable country of origin marking. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 CFR Part 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 Joan Mazzola at (212) 637-7034. Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division