The tariff classification and status under the North American Free Trade Agreement (NAFTA), of guardrail brackets from Canada; Article 509

N266463 August 4, 2015 CLA-2-73:OT:RR:NC:N1:113 CATEGORY: Classification TARIFF NO.: 7326.90.8588 Mr. Aubrey Ghinn Cougar Concrete Global Inc. OA Skyline Group 2000 Rogers Road Perth, Ontario K7H 1P9 Canada RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of guardrail brackets from Canada; Article 509 Dear Mr. Ghinn: In your letter dated June 3, 2015, you requested a ruling on the classification and the status of guardrail brackets from Canada under the NAFTA. In response to our request for additional information, our office received answers to our questions in your email dated June 29, 2015 and your letter dated July 6, 2015. Descriptive literature and photographs of the guardrail brackets were submitted for our review. The products under consideration are identified as the Skyline Standard Upright Bracket (Product Number 3001) and the Skyline Easy Railing Bracket (Product Number 3002). You stated in your letter that the “Brackets are for use in creating a temporary guardrail on roofs to protect workers from falling when working on rooftops.” The literature indicated that the Standard Upright Bracket and the Easy Railing Bracket are made of steel and are combined with lumber to form a guardrail system. The 3001 Bracket is designed to serve as a support for the horizontal lumber and the 3002 Bracket is designed to hold the upright lumber. The Skyline Standard Upright Bracket (skid of 100) measures approximately 60 inches in length, 48 inches in width, 69 inches in height and weighs approximately 1397 pounds. The Skyline Easy Railing Bracket (box of 6) measures approximately 20 inches in length, 6 inches in width, 6.75 inches in height and weighs approximately 27 pounds. In your letter, you also stated that “The brackets are produced in the territory of Canada exclusively from originating materials bar the black plastic caps used to cap off the end of the upright tube…All cutting, bending, and welding is done in Canada.” The applicable tariff provision for the Skyline Standard Upright Bracket (Product Number 3001) and the Skyline Easy Railing Bracket (Product Number 3002) will be 7326.90.8588, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of iron or steel, other…other. The general rate of duty will be 2.9 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 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. Based on the facts provided, the guardrail brackets described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). The subject brackets 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 Ann Taub at Ann.Taub@cbp.dhs.gov. Sincerely, Gwenn Klein Kirschner Director National Commodity Specialist Division