The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a "RoamAlert Plus ECO" from Canada; Article 509

NY K82029 January 14, 2004 CLA-2-85:RR:NC:1:112 K82029 CATEGORY: Classification TARIFF NO.: 8537.10.90 Mr. Martin J. Sveum FedEx Trade Networks #8 14th Street P.O. Box 1738 Blaine, WA 98231-1738 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a “RoamAlert Plus ECO” from Canada; Article 509 Dear Mr. Sveum: In your letter dated December 13, 2003, on behalf of EXI Wireless Systems, Inc., you requested a ruling on the status of a “RoamAlert Plus ECO” from Canada under the NAFTA. As indicated by the submitted literature and sample, the “RoamAlert Plus ECO” is a system designed for controlling exit points at locations such as nursing homes and other care facilities. The principal components of the system consist of a controller, various antennae with cable, a door contact, and an access keypad and cable. It works in conjunction with transponders that transmit signals to the system. This system is considered a “set” according to the definition in General Rule of Interpretation (GRI) 3(b), Harmonized Tariff Schedule of the United States (HTS). The component that imparts the essential character of the system will be determinative of the classification of the system in accordance with GRI 3(b). In this regard, we believe that the controller imparts the essential character. As such, the applicable tariff provision for the “RoamAlert Plus ECO” will be 8537.10.90, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other boards, panels, …, and other bases, …, for electric control or the distribution of electricity, …: For a voltage not exceeding 1,000 V. The general rate of duty will be 2.7 percent ad valorem. The merchandise does not qualify for preferential treatment under the NAFTA because the door contact and access keypad, having been manufactured in Korea and Singapore, respectively, will not be wholly obtained or produced entirely in the territory of a NAFTA country. The mere packaging of these non-originating materials in Canada does not qualify as a change required by General Note 12(t)/85, HTS. 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 David Curran at 646-733-3017. 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, Bureau of Customs and Border Protection, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division