N308753

N308753 February 5, 2020 CLA2-OT:RR:NC:N3:351 CATEGORY: Classification TARIFF NO.: 6307.20.0000 Ms. Allison Gray Mustang Survival ULC 7525 Lowland Drive Burnaby, B.C. Canada V5J 5L1 RE: Classification, country of origin determination and status under the North American Free Trade Agreement (NAFTA) for an inflatable life preserver unit from Canada; 19 CFR 102.21(c)(5); Article 509 Dear Ms. Gray: This is in reply to your letter dated November 5, 2019, received on January 6, 2020, requesting country of origin and status under the North American Free Trade Agreement (NAFTA) determinations for an inflatable life preserver unit which will be imported into the United States. A sample was provided with your letter and will be returned per your request. FACTS: The RATIS™ SOF Life Preserver Unit (LPU) with manual inflator, item number MD1502, is an integrated lightweight tactical LPU designed for military and law enforcement to attach to a modular lightweight load-carrying equipment (MOLLE) vest but, alternatively, may be used with the included chest harness. The U-shaped LPU has an outer surface of woven nylon fabric and knit nylon mesh. It is worn around the back of the neck and features zippered compartments to house the integrated bladder assembly, CO2 cylinder and manual inflator. Webbed straps and buckles are attached to the top and bottom of the LPU to facilitate attachment through the MOLLE slots on the carrier. The sternum strap buckles the two ends of the apparatus together to secure the bladder lobes in the inflated condition. To inflate, the wearer pulls a beaded handle attached to the apparatus with hook and loop fasteners on the left lobe causing the bladder to fill with CO2. As the bladder fills, a breakaway zipper that goes around the outside edge of the cover opens to allow for full inflation. The manufacturing operations for the Ratis™ LPU are as follows: Taiwan Thermoplastic polyurethane bladder material is manufactured. Bladder material is exported to Canada and warehoused until needed for production at which time it is exported to the United States. Sweden Inflator sealing ring, inflator body and inflator cap are manufactured. Inflator sealing ring is exported to the United States. Inflator body and cap are exported to Canada. Austria CO2 cylinder is manufactured. CO2 cylinder is exported to the United States and subsequently exported to Canada. United States Remaining components are manufactured including: coated woven nylon fabric of Chapter 59, Harmonized Tariff Schedule of the United States (HTSUS); knit nylon mesh fabric of Chapter 60, HTSUS; nylon webbing; plastic buckles; thread; cordage; hook and loop fastener; beads; zippers; brass ring; oral tube and valve; reflective tape; elastic and epoxy adhesive. Bladder (SA1500) sub-assembly involving: Cutting the bladder material Die punch holes in the bladder material for oral tube and valve and for welding alignment. Spot weld the oral tube and valve to bladder material. Perimeter weld the bladder material. Die cut the bladder shape. Weld the attachment panels onto the bladder. Install the oral inflation tube and valve. Bladder sub-assembly exported to Canada. Canada CO2 cylinder with body (SA7905) sub-assembly. Screw cylinder into inflator body. Print and attach appropriate warning labels to cylinder body. Manual inflator (SA7907) with handle sub-assembly. String beads onto cord and sew onto nylon mesh body with hook and loop. Attach end of lace cord onto manual inflator cap. Cover (SA1501) sub-assembly. Cut cover panels to shape and size. Sew panels together. Attach hardware, i.e. buckles, zippers, etc…) Chest harness (SA1505) sub-assembly. Cut textile components to shape and size. Sew textile components together. Attach hardware, i.e. plastic buckles, D-rings, etc… Final assembly of Ratis™ LPU. ISSUE: What are the classification, country of origin and status under the NAFTA for the subject merchandise? CLASSIFICATION: The applicable subheading for the Ratis™ LPU will be 6307.20.0000, (HTSUS), which provides for “Other made up articles, including dress patterns: Lifejackets and lifebelts.” The general rate of duty will be 4.5 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 https://hts.usitc.gov/current. NAFTA – LAW AND ANALYSIS: General Note 12, HTSUS, incorporates Article 401 of NAFTA into the HTSUS. General Note 12(a)(i) provides, in pertinent part: (i) Goods that originate in the territory of a NAFTA party under the terms of subdivision (b) of this note and that qualify to be marked as goods of Canada under the terms of the marking rules set forth in regulations issued by the Secretary of the Treasury (without regard to whether the goods are marked), when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn followed by the symbol “CA” in parentheses, are eligible for such duty rate, in accordance with section 201 of the NAFTA Implementation Act. Accordingly, the assembled Ratis™ LPU will be eligible for the “Special” “CA” rate of duty provided they are NAFTA “originating” goods under General Note 12(b), HTSUS, and qualify to be marked as a product of Canada under the marking rules. 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 non-originating 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. The rule for subheading 6307, HTSUS, in GN 12(t)/63(4) states: A change to headings 6304 t

General Note 12, HTSUS, incorporates Article 401 of NAFTA into the HTSUS. General Note 12(a)(i) provides, in pertinent part:(i) Goods that originate in the territory of a NAFTA party under the terms of subdivision (b) of this note and that qualify to be marked as goods of Canada under the terms of the marking rules set forth in regulations issued by the Secretary of the Treasury (without regard to whether the goods are marked), when such goods are imported into the customs territory of the United States and are entered under a subheading for which a rate of duty appears in the “Special” subcolumn followed by the symbol “CA” in parentheses, are eligible for such duty rate, in accordance with section 201 of the NAFTA Implementation Act.Accordingly, the assembled Ratis™ LPU will be eligible for the “Special” “CA” rate of duty provided they are NAFTA “originating” goods under General Note 12(b), HTSUS, and qualify to be marked as a product of Canada under the marking rules. 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, thatFor 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)