CLA-2-82:S:N:N1:106-862781
Mr. Brian Johnson
Border Brokerage Company
P.O. Box B
Blain, Washington 98230
RE: The tariff classification of axes from Canada
Dear Mr. Johnson:
In your letter dated April 20, 1991, on behalf of Keystone
Supplies, Richmond, BC, Canada, you requested a tariff
classification ruling. You also asked if the axes imported into
the United States are eligible for the special rate of duty under
the United States-Canada Free Trade Agreement.
The articles to be imported are axes that are assembled in
Canada from components manufactured in the U.S.A., China and
Taiwan. Following is a breakdown of individual components by
country of manufacture and cost (which includes the cost of
freight and brokerage into Canada). There are five different
sizes of axe heads which can be incorporated onto two different
sizes of handles.
Component Country of manufacture Cost
Handle "Tempest" U.S.A. $2.42
Handle "Red Stained" U.S.A. $2.02
Pulaski Head Axe China $2.13
3 1/2 # double bit axe China $2.32
3 1/2 # single bit axe China $1.95
5 # rafting axe China $2.43
3 # rafting axe China $1.46
Wooden wedge U.S.A. $0.09
Steel wedge U.S.A. $0.01
Labels Taiwan $0.07
Packaging Canada $0.18
Labor Canada $0.65
The applicable subheading for the axes will be 8201.40.6000,
Harmonized Tariff Schedule of the United States (HTS), which
provides for handtools of the following kinds: axes, and parts
thereof (including the axe head). The rate of duty will be 6.2
percent ad valorem.
General Note 3(c)(vii), HTS, covers goods originating in the
territory of Canada that may be entitled to a special rate of
duty. We call your attention to General Note 3(c)(vii)(H)(1)
which states that, notwithstanding subdivision (c)(vii)(G), goods
described in that paragraph shall be considered to have been
transformed in the territory of Canada and be treated as goods
originating in the territory of Canada and/or the United States
if (1) the value of materials originating in the territory of
Canada and/or the United States that are used or consumed in the
production of the goods plus the direct cost of assembling the
goods in the territory of Canada and/or the United States
constitute not less than 50 percent of the value of the goods
when exported to the territory of the United States, and (2) the
goods have not subsequent to assembly undergone processing or
further assembly in a third country and they meet the
requirements of subdivision (c)(vii)(E) of this note.
If your merchandise meets these requirements and the
applicable regulations, then goods classifiable under subheading
8201.40.6000, HTS, which originated in the territory of Canada,
will be entitled to a 4.3 percent rate of duty under the United
States-Canada Free Trade Agreement.
This ruling is being issued under the provisions of Section 177
of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport