HQ 087869: Commercial Trolling Line on Reels; Stranded Wire Fitted With Fittings; Fishing Line Processed in Canada from Stainless Steel Stranded Wire of Korean Origin; Substantial Transformation

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                          HQ 087869

                                          DEC 7 1990

            CLA-2:CO:R:C:G   087869 JAS

            CATEGORY:   Classification

            TARIFF NO.: 7312.10.0500

            L. H. Skoropat
            Canadian Wire Products
            989 Price Road
            Parksville, B.C. V9P 2C9

            RE:  Commercial Trolling Line on Reels; Stranded
                 Wire Fitted With Fittings; Fishing Line Processed
                 in Canada from Stainless Steel Stranded Wire of
                 Korean Origin; Substantial Transformation

            Dear Mr. Skoropat:

                 In your letter of May 23, 1990, supplemented on June 27,
            1990, you inquire as to the tariff status of commercial
            trolling line processed in Canada from stranded wire from the
            Republic of Korea (ROK).  Samples were submitted.  Our ruling
            follows.

            FACTS:

                 The product entering Canada from the ROK is 1/16 in.
            diameter 1 x 7 stainless steel type 304 strand in 10,800 ft.
            reels.  In Canada, you respool the strand onto 3,600 ft. reels
            then crimp on brass marks in twos, at regular intervals.  Their
            purpose is to keep leadered fishing hooks properly spaced and
            to prevent sliding and bunching.  These are marks made in
            Canada on a screw machine lathe which you furnace anneal at
            1000 degrees F to soften them and increase their formability.
            They are then dipped in nitric acid to remove black scale and
            rinsed.  This imparts their bright finish.  After crimping on
            the marks, the line is wound onto 10 in. diameter wooden spools
            in 300, 450, 600 and 900 ft. lengths as the customer desires.
            This is the condition of the fishing line as imported.  The
            spools themselves are made in your shop from 1/4 in. hardboard
            and 1 1/2 in. cedar planks both of Canadian origin.  After
            importation, the leadered hooks are attached and the line payed
            out on power winches aboard commercial salmon fishing boats
            either in entire lengths or cut-to-length.












                                        - 2 -

            ISSUE:

                 Whether the merchandise is a product of Canada for tariff
            purposes.

            LAW AND ANALYSIS:

                 Merchandise is classifiable under the Harmonized Tariff
            Schedule of the United States Annotated (HTSUSA) in accordance
            with the General Rules of Interpretation (GRIs).  GRI 1 states
            in part that for legal purposes, classification shall be
            determined according to the terms of the headings and any
            relative section or chapter notes and, provided the headings or
            notes do not require otherwise, according to GRIs 2 through 6.

                 Heading 7312 covers stranded wire, ropes, cables, plaited
            bands, slings and the like, of iron or steel, not electrically
            insulated.  The Explanatory Notes provide a commentary on the
            scope of each heading to the HTS and are useful in ascertaining
            the classification of goods under the HTS.  Relevant notes
            indicate heading 7312 includes wire and ropes fitted with
            hooks, spring hooks, swivels, rings, thimbles, clips, sockets,
            etc., or made up into single or multiple slings, strops, etc.
            Goods of heading 7312 are used, among other things, for
            hoisting, hauling or towing, as rigging or guying for masts,
            pylons, etc.  The brass marks facilitate the lifting function
            which the fishing line performs and are therefore "fittings" of
            a like kind to the examples enumerated in the notes.  Under the
            authority of GRI 1, the fishing line in issue here is provided
            for in heading 7312.  Actual classification is is subheading
            7312.10.0500, HTSUSA, stranded wire of stainless steel, fitted
            with fittings or made up into articles.

                 The fishing line entering the Customs territory is not
            eligible for a reduced rate of duty under the United States-
            Canada Free-Trade Agreement Implementation Act of 1988
            (USCFTA).  This is because "goods originating in the territory
            of Canada" means those that have been transformed in the
            territory of Canada so as to be subject to a change in tariff
            classification from one HTS heading to another such heading.
            Both the stranded wire from Korea and the wire with brass marks
            would be classified in appropriate subheadings of heading 7312.

                 In order for the stranded wire of Korean origin to be
            considered a product of Canada for purposes of the steel
            arrangements, a substantial transformation must occur in
            Canada.  The processing in Canada must result in a product















                                        - 3 -

            other than or materially different from the product entering
            Canada.  That is, a new and different article of commerce must
            emerge from Canada, one having a new name, character or use.
            In our opinion, no significant or material change in character
            or use results from the processing of the Korean wire in
            Canada.  The physical properties of the stranded wire remain
            unchanged by the addition of the brass marks.  The processing
            in Canada merely narrows the use of the stranded wire but does
            not give it a new use for which the wire was previously
            unsuited.  We conclude that the identity of the stranded wire
            that enters Canada remains fundamentally unchanged and is the
            very essence of the fishing line that enters the Customs
            territory.  The fishing line entering the Customs territory is
            therefore a product of the Republic of Korea for steel
            arrangement purposes.

                 Goods from the Republic of Korea classifiable in heading
            7312 do not appear covered by applicable steel arrangements.
            However, you may confirm this by writing to the Office of
            Agreements Compliance, International Trade Administration,
            Department of Commerce, Washington, D.C. 20230.

            HOLDING:

                 The commercial trolling line is classified in subheading
            7312.10.05000, HTSUSA, for the reasons stated.  The rate of
            duty is 5.7 percent ad valorem.  It is not an originating good
            for USCFTA purposes.  For purposes of the steel arrangements,
            the trolling line is considered a product of the Republic of
            Korea.



                                        Sincerely,



                                        John Durant, Director
                                        Commercial Rulings Division