The tariff classification, country of origin marking and status under the North American Free Trade Agreement (NAFTA) of a set of glass bowls from Mexico on a stoneware tray from China

N061179 June 12, 2009 CLA-2-70:OT:RR:NC:1:126 CATEGORY: Classification TARIFF NO.: 7013.49.2000 Ms. Connie Pollauf Libbey Glass 300 Madison Avenue P.O. Box 10060 Toledo, Ohio 43699-0060 RE: The tariff classification, country of origin marking and status under the North American Free Trade Agreement (NAFTA) of a set of glass bowls from Mexico on a stoneware tray from China Dear Ms. Pollauf: In your letter dated May 6, 2009, you requested a tariff classification ruling regarding the tariff classification, country of origin marking and NAFTA status of Tempo, a set of glass bowls made in Mexico on a stoneware tray made in China. A sample was submitted with your ruling request. The merchandise consists of three glass bowls on a stoneware tray. The bowls are designed to hold food. In their imported condition, the bowls and the tray will be packed together ready for retail sale as a set. The essential character of this merchandise is imparted by the glass bowls. In your letter you indicated that the unit value of each glass bowl is under three dollars. The applicable subheading for the glass bowls on the stoneware tray will be 7013.49.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for glassware of a kind used for table (other than drinking glasses) or kitchen purposes other than that of glass-ceramics: other: other: valued not over three dollars each. The rate of duty will be 22.5 percent ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the North American Free Trade Agreement (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” only if--(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or(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 “Tempo” set of Mexican glass bowls on a Chinese stoneware tray will qualify for NAFTA preferential treatment, because it will meet the requirements of HTSUS General Note 12(b)(ii)(A) and 12(t). It will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.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. 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. Section 102.11 (a) of the regulations indicates that the country of origin of a good is the country in which: The good is wholly obtained or produced; The good is produced exclusively from domestic materials; or Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Section 102.20… Applying the NAFTA Marking Rules set forth in Part 102 of the regulations - Section 102.11(a) and Section 102.20 - to the facts of this case, we find that the Tempo set is a good of Mexico for marking purposes. This merchandise may be subject to certain requirements under the regulations administered by the Food and Drug Administration (FDA). If you have any questions regarding these requirements, you may contact the FDA at Food and Drug Administration Division of Import Operations and Policy 5600 Fishers Lane Rockville, Maryland 20857 Telephone: 1-888-463-6332. This merchandise may be subject to The Public Health Security and Bioterrorism Preparedness and Response Act of 2002 (The Bioterrorism Act), which is regulated by the FDA. Information on the Bioterrorism Act can be obtained by calling the FDA at telephone number (301) 575-0156, or at the Web site www.fda.gov/oc/bioterrorism/bioact.html.       This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). 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 Jacob Bunin at 646-733-3027. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division