The tariff classification, country of origin and status under the North American Free Trade Agreement (NAFTA), of a spunbond cartridge filter from Canada; Article 509

N250971 April 3, 2014 CLA-2-59:OT:RR:NC:N3:350 CATEGORY: Classification TARIFF NO.: 5911.90.0080 Kimberly Whitworth Maddocks Industrial Filter Division 663 Woodward Ave. Hamilton, Ontario Canada L8H 6P3 RE: The tariff classification, country of origin and status under the North American Free Trade Agreement (NAFTA), of a spunbond cartridge filter from Canada; Article 509 Dear Ms. Whitworth: In your letter dated February 24, 2014, you requested a ruling on the status of a spunbond cartridge filter from Canada under the NAFTA. A sample was provided of the 26” filter but it was not identified with a name or style number. FACTS: The spunbond cartridge filter sample consists of pleated filter media held in a cylindrical shape by two metal end caps and a metal screen for support on the interior side of the media. Your letter indicates there are seven components used in the manufacture of this filter cartridge – end caps, spunbond filter media, steel inner screen, outer band (polyester strapping), gasket, adhesive (potting compound), and hot melt glue. The filter media is manufactured in Japan and the hot melt glue is made in Malaysia. The other five components are stated to be manufactured in either Canada or the US. The seven components are processed and assembled in Canada to form the completed filter cartridge. This particular filter is stated to be used exclusively in industrial dust collector systems. ISSUES: What are the classification, status under the NAFTA, and country of origin of the subject merchandise? CLASSIFICATION: The applicable tariff provision for this 100% polyester spunbond cartridge filter will be 5911.90.0080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Textile products and articles, for technical uses , specified in note 7 to this chapter: Other: Other. The general rate of duty will be 3.8 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/. NAFTA ELIGIBILITY – LAW AND ANALYSIS: 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” 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, or (B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or (iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or (iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for “parts” and used in the production of such goods does not undergo a change in tariff classification because-- (A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or (B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts, provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note. For goods classified in heading 5911, General Note 12/59.6 requires: “A change to heading 5911 from any other chapter, except from headings 5111 through 5113, 5208 through 5212, 5310 through 5311, 5407 through 5408 or 5512 through 5516”. The only non-originating components, the nonwoven filter media of Japanese origin classified in heading 5603 and the glue of Malaysian origin classified in either chapter 39 or 35, are not classified in any of the headings listed above. Therefore, they both meet the tariff shift requirement outlined above according to General Note 12(b)(ii). The goods will therefore be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. COUNTRY OF ORIGIN - LAW AND ANALYSIS: Section 334 of the Uruguay Round Agreements Act (codified at 19 U.S.C. 3592), enacted on December 8, 1994, provided rules of origin for textiles and apparel entered, or withdrawn from warehouse for consumption, on and after July 1, 1996. Section 102.21, Customs Regulations (19 C.F.R. 102.21), published September 5, 1995 in the Federal Register, implements Section 334 (60 FR 46188). Section 334 of the URAA was amended by section 405 of the Trade and Development Act of 2000, enacted on May 18, 2000, and accordingly, section 102.21 was amended (68 Fed. Reg. 8711). Thus, the country of origin of a textile or apparel product shall be determined by the sequential application of the general rules set forth in paragraphs (c)(1) through (5) of Section 102.21. Paragraph (c)(1) states, “The country of origin of a textile or apparel product is the single country, territory, or insular possession in which the good was wholly obtained or produced.” As the subject merchandise is not wholly obtained or produced in a single country, territory or insular possession, paragraph (c)(1) of Section 102.21 is inapplicable. Paragraph (c)(2) states, “Where the country of origin of a textile or apparel product cannot be determined under paragraph (c)(1) of this section, the country of origin of the good is the single country, territory, or insular possession in which each of the foreign materials incorporated in that good underwent an applicable change in tariff classification, and/or met any other requirement, specified for the good in paragraph (e) of this section:” Paragraph (e) in pertinent part states, The following rules shall apply for purposes of determining the country of origin of a textile or apparel product under paragraph (c)(2) of this section: HTSUS 5911.90 Tariff shift and/or other requirements This rule states in pertinent part that “if the good is a made up article other than a good of yarn, rope, cord or braid, a change to subheading 5911.90 from any heading, including a change from another good of heading 5911, provided that the change is the result of the good being wholly assembled in a single territory or insular possession”. As the spunbond filter cartridge is wholly assembled in Canada, country of origin is conferred in Canada. The country of origin of the air filter is Canada. The marking “Made in Canada”, as shown on the sample, would be acceptable. HOLDING: The applicable tariff provision for this 100% polyester spunbond cartridge filter will be 5911.90.0080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Textile products and articles, for technical uses , specified in note 7 to this chapter: Other: Other. The general rate of duty will be 3.8 percent ad valorem. Based on the facts provided, we find that the 100% polyester spunbond cartridge filter is eligible for duty free treatment as provided for in NAFTA, because it meets the requirements of HTSUD General Note 12(b)(ii). The goods will qualify for a Free rate of duty under NAFTA upon compliance with all applicable laws, regulations, and agreements. The holding set forth above applies only to the specific factual situation and merchandise identified in the ruling request. This position is clearly set forth in section 19 CFR 181.100(a)(2). This section states that “a ruling letter is issued on the assumption that all the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect.” This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). Should it be subsequently determined that the information furnished is not complete and does not comply with 19 CFR 181.100(a)(2), the ruling will be subject to modification or revocation. In the event there is a change in the facts previously furnished, this may affect the determination of country of origin. Accordingly, if there is any change in the facts submitted to Customs, it is recommended that a new ruling request be submitted. 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 Deborah Walsh at (646) 733-3044. Sincerely, Gwenn Klein Kirschner Acting Director National Commodity Specialist Division