The tariff classification of fabric scraps from Mexico

N129149 November 1, 2010 CLA-2-63:RR:OT:NC:N3:351 CATEGORY: Classification TARIFF NO.: 6310.90.2000 Ms. Clare D. Updike LZB Manufacturing, Inc. 1284 North Telegraph Road Monroe, MI 48162 RE: The tariff classification of fabric scraps from Mexico Dear Ms. Updike: In your letter dated October 25, 2010, you requested a tariff classification ruling. You submitted pictures of various fabric scraps from woven and knit fabrics. You state that LZB imports rolls of fabric from China and also from the United States into Mexico. The fabrics include both knit and woven fabrics of man-made fibers and cotton. In Mexico, the fabric is cut and sewn into upholstered furniture covers that are used in the production of furniture in the U.S. During the manufacturing process in Mexico, the fabric is cut by a cutting machine to a specific pattern. The scraps left over are collected and later baled. LZB intends to import the bales of fabric cuttings into the U.S. where they will be sold to companies that will grind the scraps to make padding, wadding, packaging, or other materials that are manufactured from ground fibers. The applicable subheading for the fabric scraps will be 6310.90.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for used or new rags, scrap twine, cordage, rope and cables, and worn out articles of twine, cordage, rope or cables, of textile materials: Other: Other. The rate of duty will be Free. 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 the World Wide Web at http://www.usitc.gov/tata/hts/. You also ask for a country of origin determination 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 -- they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; Further on, section (n)(ix)(B) of General Note 12 provides originating status for waste and scrap derived from -- used goods collected in the territory of one or more of the NAFTA parties, provided such goods are fit only for the recovery of raw materials . . . . Because the fabric scraps meet the above requirements, the country of origin of the scraps is Mexico and the scraps are eligible for duty-free treatment under NAFTA. 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 Mitchel Bayer at (646) 733-3102. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division