HQ 956446: Plastic Binding Elements for Reports

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 956446

                         February 1, 1995

CLA-2 CO:R:C:F  956446  ALS

CATEGORY:  Classification

TARIFF NO.:  3926.90.9700

Ms. Erin Yeary
Manager, Import/Export Compliance
Daniel B. Hastings, Inc.
P. O. Box 673
Laredo, TX 78042

RE:  Plastic Binding Elements for Reports

Dear Ms. Yeary:

     This is in reference to your request as to the NAFTA
eligibility of the subject elements.  Samples were furnished.

FACTS:

     The binding elements are produced in Mexico by a wholly
owned subsidiary of your client which is located in the United
States.  The binding elements are produced from polyvinyl
chloride (PVC) sheets manufactured in the United States by a
third party from materials which are 98 percent or more of U.S.
origin.  These PVC sheets are exported from the United States in
39 inches wide master rolls in four separate gauges, 15, 20, 25
or 30 gauge, depending on the ultimate diameter of the finished
book binder.  In Mexico each PVC roll is mounted on a slitter/
rewinding machine.  A series of slitting blades are spaced to
specific widths across the web of the master roll, and the roll
is slit into smaller widths, depending of the specific diameter
of the binder.  These smaller width rolls are referred to as
reels.

     Each reel is next mounted onto a blanking machine where it
is stamped into a configuration called a blank which generally
consists on 76 unrolled rings or tabs.  Other common sizes are 80
and 84 rings.  Occasionally, the blank, while still in a flat,
unrolled condition, may have a decorative imprint applied to the
spine before it proceeds through the remainder of the production
process.  The blank is then rolled on a rolling table using a
combination of heat and pressure.  This rolled/oval configuration
is known as rolled stock. 
                              - 2 -

     The next process is cutting of the rolled stock into a
length corresponding to the customer's needs.  The most popular
length is the 11 inch binding edge.  The binder strips are then
packaged in boxes and shipping cartons and shipped to the end
user.

ISSUE:

     What is the classification of the product and is it eligible
for NAFTA treatment?

LAW AND ANALYSIS:

     Classification of merchandise under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) is governed by
the General Rules of Interpretation (GRI's) taken in order.  
GRI 1 provides that the classification is determined first in
accordance with the terms of the headings and any relative
section and chapter notes.  If GRI 1 fails to classify the goods
and if the headings and legal notes do not otherwise require, the
remaining GRI's are applied, taken in order.

     In order to ascertain whether the binding elements are
eligible for NAFTA treatment it is first necessary to ascertain
their classification.  We note that the product is made of PVC, a
material of heading 3904, Harmonized Tariff Schedule of the
United States Annotated(HTSUSA).  We further note that the
product is specifically described in the provisions for other
articles of plastic and articles of other material of headings
3901 to 3914.  Specifically, subheading 3926.90.8700, HTSUSA,
provides for flexible plastic document bindings with tabs, rolled
or flat.

     Such products, when made of PVC sheet material which is made
entirely in the territory of one or more NAFTA countries, using
materials which themselves were originating, are eligible for
NAFTA treatment pursuant to General Note 12(b)(iii), HTSUSA, upon
compliance with all applicable laws and regulations.  Since the
manufacturer/supplier of the PVC sheet material has indicated
that 98.6 percent of the materials used in the manufacture of
that sheet materials is of U.S. origin and that the PVC sheeting
is manufactured in the United States, we have concluded that the
PVC sheeting is U.S. originating material.

                              - 3 -

HOLDING:

     Plastic binding elements made of PVC are classifiable in
subheading 3926.90.8700, HTSUSA, and is subject to a general rate
of duty of 5.3 percent ad valorem.  

     Binding elements fabricated in Mexico from PVC sheets which
are manufactured in the United States of U.S. originating
materials, are eligible for preferential treatment under NAFTA
pursuant to General Note 12(b)(iii), HTSUSA.  Such merchandise,
produced in Mexico, is eligible for a free special rate of duty.

                                   Sincerely,



                              John Durant, Director
                              Commercial Rulings Division