The tariff classification of a CD-R Labeling System from Mexico.

NY H80170 May 15, 2001 CLA-2-39:RR:NC:N2:221 H80170 CATEGORY: Classification TARIFF NO.: 3926.90.9880; 8524.39.4000 Ms. Lisa Thatcher Avery Dennison 50 Pointe Drive Brea, CA 92821 RE: The tariff classification of a CD-R Labeling System from Mexico. Dear Ms. Thatcher: In your letter dated February 23, 2001, followed up with additional information on March 9, 2001, you requested a tariff classification ruling. The sample provided with your letter is identified as the CD Stomper Pro CD-R Labeling System. The product consists of CD ROM software for making labels for CDs, plain paper and pressure sensitive paper for printing out the labels and jewel box insert cards, and a plastic CD stomper for attaching the pressure sensitive labels onto a CD. The items are packaged together for retail sale. The labeling system is considered to be a set for tariff classification purposes, and the articles within it are classified together. The essential character is imparted by the plastic stomper, which, according to the cost breakdown you provided, is of greater value than the other items in the set. However, noting Legal Note 6 to Chapter 85 of the Harmonized Tariff Schedule, the software disk is separately classifiable as recorded media. The applicable subheading for the CD Stomper Pro CD-R Labeling System, less the CD-ROM software, will be 3926.90.9880, Harmonized Tariff Schedule of the United States (HTS), which provides for other articles of plastics…other. The general rate of duty will be 5.3 percent ad valorem.  The applicable subheading for the CD-ROM disk that is part of the set will be 8524.39.4000, HTS, which provides for other recorded media for reproducing representations of instructions, data, sound, and image. The rate of duty will be free. You also requested a ruling as to the proper country of origin marking. The CD stomper is made in Taiwan. The paper products and the software are made in the United States. The components are shipped to Mexico where they are packaged into a retail box. There is no country of origin marking on the box. 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. Section 134.1(j) of the regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish.  The CD stomper set is packaged in Mexico prior to being imported into the United States. Since Mexico is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported CD stomper set is a "good of a NAFTA country", and thus subject to the NAFTA marking requirements. 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 CD stomper set is a good of Taiwan and the United States for marking purposes. It is not necessary to indicate the United States origin of the paper and the software. However, the product must be marked to permanently, legibly and conspicuously indicate Taiwan as the country of origin of the CD stomper. 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. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division