The tariff classification and status under the North American Free Trade Agreement (NAFTA), of populated circuit boards for radiosondes from Mexico; Article 509

N280400 November 17, 2016 CLA-2-90:OT:RR:NC:N1:405 CATEGORY: Classification TARIFF NO.: 9015.90.0090 Gustavo Cordova Cordova Brokerage International, Inc. 9300 Billy the Kid Street, Suite 100 El Paso, TX 79907 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of populated circuit boards for radiosondes from Mexico; Article 509 Dear Mr. Cordova: In your letter dated October 7, 2016, on behalf of NPD Technology, you requested a ruling on the status of populated circuit boards from Mexico under the NAFTA. The merchandise at issue consists of two populated circuit boards intended for use in radiosondes, a meteorological device often used in weather balloons. The two populated circuit boards covered by your submission are identified by the part numbers 1848-839-99 and 1848-852-99, and you indicate both are designed to be incorporated into a MicroSonde Mark IIA Radiosonde. You state that the circuit boards are populated with all components necessary to enable the radiosonde to perform its functions; functions that include measuring temperature, relative humidity, wind speed, and the like, along with the ability to transmit said measurements to receiving equipment on the ground. The radiosondes into which the circuit boards will be incorporated function in a manner akin to that of the aerological sounding apparatus described in Harmonized System Explanatory Note (V) (10) to Heading 9015 (which references radiosondes specifically). Consequently, it appears that the complete MicroSonde Mark IIA Radiosonde would be considered a meteorological apparatus of heading 9015. You suggest classification of the populated circuit boards in subheading 9015.90.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts and accessories of meteorological instruments and appliances. Separately imported parts and accessories for articles of Chapter 90 are classifiable in the heading of the device with which they are intended to be used, provided they are identifiable as suitable for use solely or principally as parts or accessories of the device in question and are not excluded by Notes 1 or 2(a) to Chapter 90, or by HTSUS Additional Rule of Interpretation 1(c). Based on the information provided, the circuit boards in question are designed specifically for use in the MicroSonde Mark IIA Radiosonde, and this office does not find any of the abovementioned exclusions to apply in this instance. The applicable tariff provision for the populated circuit boards for use in radiosondes will be 9015.90.0090, HTSUS, which provides for Surveying (including photogrammetrical surveying), hydrographic, oceanographic, hydrological, meteorological or geophysical instruments and appliances, excluding compasses; rangefinders; parts and accessories thereof: Parts and accessories: Other. The general 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 World Wide Web at https://hts.usitc.gov/current. In your submission you inquire as to the populated circuit boards’ eligibility to qualify for preferential duty treatment under NAFTA. The boards are comprised of myriad components, such as capacitors, resistors, integrated circuits, and the like that hail from a host of countries, including Japan, Israel, China, Mexico, the United States, and others. The populated circuit boards are assembled in Mexico, and subsequently shipped to the United States, where they will ultimately be incorporated into a radiosonde. 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. While the populated circuit boards are assembled in Mexico, they contain non-originating components (i.e. those that were produced in countries other than Canada, the United States, or Mexico). As a result, to qualify for NAFTA treatment under the terms of General Note 12(b)(ii)(a), each non-originating material must undergo the change in tariff classification set forth in General Note 12(t). The relevant change in tariff classification rule for subheading 9015.90, where the populated circuit boards at issue are classified, states the following: A change to subheading 9015.90 from any other heading; or No required change in tariff classification to subheading 9015.90, provided there is a regional value content of not less than: 60 percent where the transaction value is used, or 50 percent where the net cost method is used. Based on the facts provided, the non-originating components of the circuit boards meet the requisite change in tariff classification outlined above. As a result, the populated circuit boards at issue qualify for NAFTA preferential treatment. 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 Evan Conceicao at evan.m.conceicao@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division