CLA-2-84:R:N1:103 816131

Mr. Larry Robinette
Quality Products
3600 W. Dickinson Blvd.
Fort Stockton, TX 79735

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of an unfinished mobile crane from Mexico; Article 509

Dear Mr. Robinette:

In your letter dated October 12, 1995 you requested a ruling on the status of an unfinished mobile crane from Mexico under the NAFTA.

The mobile crane is a small crane capable of being mounted on a vehicle trailer hitch drawbar or on a rollabout frame. The crane basically consists of a vertical column, boom arm, hydraulic cylinder or winch lifting device, and optional outriggers. It will be imported without its hydraulic cylinder or winch, which your firm will include prior to shipping it to your customer. The crane is similar in size to the type of crane used in workshops and garages.

According to your letter, the Mexican manufacturer buys the steel used in the crane from North American suppliers, and your firm supplies him with nuts and bolts of North American origin. You state that the four casters used on the rollabout frame may not be of North American origin, but that they are worth less than 7 percent of the value of the crane. For purposes of this ruling, we assume the steel is produced in North America.

The applicable tariff provision for the unfinished mobile crane will be 8426.91.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for cranes designed for mounting on road vehicles. The general rate of duty will be 1.6 percent ad valorem.

The casters are considered to be de minimis per HTSUSA General Note 12(f). Accordingly, the unfinished mobile crane, being made entirely in the territory of Canada, Mexico, and/or the United States using materials which themselves were originating, will satisfy the requirements of HTSUSA General Note 12(b)(iii). The merchandise will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181).

This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.

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 Alan Horowitz at 212-466-5494.

Sincerely,

Roger J. Silvestri
Director
National Commodity
Specialist Division