47660 Halyard Dr.
Plymouth, MI 48170
RE: The tariff classification and country of origin of electric motors from Mexico
Dear Mr. Turner:
In your letter dated July 17, 2018 you requested a tariff classification and country of origin determination ruling.
The merchandise under considertation is referred to as a Direct Current Electric Motor 1999-1020656EP, which is described as a brushed electric motor with a peak output power of 5.793 Watts. You state that the electric motor is intended to be used with electric door locks and suggest the classification is 8501.10.4060, Harmonized Tariff Schedule of the United States (HTSUS). We agree.
The applicable subheading for the Direct Current Electric Motor 1999-1020656EP will be 8501.10.4060, HTSUS, which provides for “Electric motors…: Motors of an output not exceeding 37.5 W: Of under 18.65 W: DC: Other.” The rate of duty will be 4.4%.
With regard to the country of origin of the finished motor, you state that your factory in Mexico imports three components from China which are assembled in your facility into a finished good. The parts that are assembled into the motor are as follows: the stator or rear housing, PN 1300-M020005; the rotor or armature assembly, 1100-M020010; and the end cap assembly, 1200-M020007. Each of these components are classified in subheading 8503.00, HTSUS and you suggest that while the country of origin of all three parts is China, they are substantially transformed into a finished motor in your factory in Mexico where the final country of origin would therefore be Mexico. We disagree.
Initially, we would note that for the purposes of determining country of origin of goods of a North American Free Trade Agreement participating country, we are compelled to follow the Rules of Origin in 19 CFR 102.
The manufacturing operation described in your request involves assembling three foreign subassemblies into a finished electric motor. However, 19 CFR 102.11(d)(2) states: “If the good was produced by simple assembly and the assembled parts that merit equal consideration for determining the essential character of the good are from the same country, the country of origin of the good is the country of origin of those parts”.
Simple assembly is defined in 19 CFR 102.14(o), in pertinent part, as “the fitting together of five or fewer parts all of which are foreign (excluding fasteners such as screws, bolts, etc.) by bolting, gluing, soldering, sewing or by other means without more than minor processing”. Based upon the information provided, there are three foreign subassemblies that are combined to form an electric motor and this office is of the opinion that the manufacturing process taking place in Mexico is merely simple assembly.
As a result of the foregoing, the country of origin of the Direct Current Electric Motor 1999-1020656EP will be China.
Effective July 6, 2018, the Office of the United States Trade Representative imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. For additional information see “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01 and classified in one of the subheadings enumerated in U.S. note 20(b) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by subheading 9903.88.01.
Products of China classified under subheading 8501.10.40, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8501.10.4060, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
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 Karl Moosbrugger at [email protected].
Steven A. Mack
National Commodity Specialist Division