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

NY L82348 February 9, 2005 CLA-2-85: RR: NC: 1:108 L82348 CATEGORY: Classification TARIFF NO.: 8528.12.68, 8528.12.72 Mr. Adolfo Saldivar RM Customhouse Brokers, Inc. 4707 E. Montana Ave., Ste 203 El Paso, TX 79903 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of LCD televisions from Mexico; Article 509 Dear Mr. Saldivar: In your letter dated January 27, 2005, on behalf of TMX Logistics, Inc., you requested a ruling on the status of LCD televisions from Mexico under the NAFTA. The subject merchandise are LCD color television receivers. They range in size from 13-inch screen diagonal to 32-inch screen diagonal. No specific model numbers have been designated except that each applicable model number will start with “V” followed by ## as representative of the size and a 7 digit numerical designation representing the client, color and finish of the television receiver. The LCD televisions will be manufactured in Mexico from both originating and non-originating components. The manufacturing process will produce complete ready to use color LCD television receivers. HQ Ruling 562607 provides guidance in this matter. Its circumstances of manufacture are quite similar especially in regard to the LCD flat panel display. Classification and NAFTA status will be accordingly. The applicable tariff provision for the LCD color televisions with a screen diagonal under 34.29 cm will be 8528.12.6801, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus: video monitors and video projectors; reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus: Color: With a flat panel screen: Other: With a video diagonal not exceeding 34.29cm. The general rate of duty will be free. The applicable subheading for the color LCD television receivers with a screen diagonal greater than 34.29cm will be 8528.12.7201, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus; video monitors and video projectors; Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus: Color: With a flat panel screen: Other: Other. The general rate of duty will be 5 percent ad valorem General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" if-- (ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that-- (A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein. Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUSA General Note 12(b) 90. The non-originating materials used to manufacture the complete LCD televisions undergo the necessary tariff shift and none of the materials used are considered an article of subheading 8529.90.53. The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. 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 Michael Contino at 646-733-3014. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division