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

NY J86371 July 7, 2003 CLA-2-91:RR:NC:MM:114 J86371 CATEGORY: Classification TARIFF NO.: 9102. 11.45 Mr. Scott Irvine Brave Leather Ltd. 72 Wingold Avenue Toronto, Canada MM6B 1P3 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of watches from Canada; Article 509 Dear Mr. Irvine: In your letter received on June 23, 2003, you requested a ruling on the status of watches from Canada under the NAFTA. The watches are battery operated quartz analog watches with no jewels. The watchstrap is made of leather. You indicate that the watch head is made in Japan and the dial is made in Hong Kong. Your supplier assembles the dial to the watch head in Canada. The watchstraps are made in Canada from scrap leather. The leather is imported from Italy and is used primarily to make leather belts, with the scrap pieces used to make the watchstraps. The applicable tariff provision for the watch is 9102.11.45, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for wrist watches, electrically operated, with mechanical display only, having no jewels or only one jewel in the movement, other. The general rate of duty will be 40 cents each plus 8.5 percent on the case plus 2.8 percent on the strap, band or bracelet plus 5.3 percent on the battery. 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)/91.1(B), HTSUSA. The watch head, which is imported from Japan, does not undergo the change in tariff classification as required in General Note 12 (t)/91.1(B), HTSUSA. 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 Barbara Kiefer at 646 733-3019. 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