CLA-2-87:OT:RR:NC:N1:101
Janet Buzzell, Office Manager
Master Machine, Inc.
10840 Mankato Street NE
Blaine, MN 55449-5240
RE: The tariff classification, marking, country of origin and NAFTA applicability of an unfinished brake part from Italy
Dear Ms. Buzzell,
In your letter dated April 9, 2009, you requested a tariff classification ruling.
The item under consideration has been identified as an Unfinished Brake Caliper (Part # 5631978). It is a gray, coin changer-shaped, aluminum forging that measures approximately 3 inches in height by 4 ½ inches in width. You state that once the unfinished Caliper arrives in the United States, it is subjected to the following additional processing:
Machining two (2) large bores for brake pistons
Machining back side surface and side ears for mounting brackets and brake pads
Machining threaded holes for hydraulic lines
Machining threaded hole for bleeder screw
Date stamping
Tumbling
Washing
Deburring
Once it has been processed, the Caliper is inspected and packaged for shipment to your customer.
The applicable classification subheading for the Unfinished Brake Caliper (Part # 5631978) will be 8708.30.5090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts … of … motor vehicles … : Brakes … parts thereof: For other vehicles: Other.” The rate of duty will be 2.5%.
Duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the World Wide Web at http://ww.usitc.gov /tata/hts/.
In addition to classification you have requested a ruling on the Country of Origin, marking and NAFTA applicability of the Caliper.
Title 19 [Customs Duties] of the Code of Federal Regulations (C.F.R.), Part 134 [COUNTRY OF ORIGIN MARKING], Subpart A [General Provisions], Section 134.1(b) [Definitions. Country of origin.] states “’Country of origin’ means the country of manufacture, production or growth of any article of foreign origin entering the United States.” Since you state in your request that the Unfinished Brake Caliper (Part # 5631978) is manufactured and produced in Italy, Italy is its country of origin.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article.
Part 134, Customs Regulations (19 CFR Part 134), implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. In this case, the ultimate purchaser of the Unfinished Brake Caliper (Part # 5631978) is your company, Master Machine, Inc.
An article is excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and section 134.32(d), Customs Regulations (19 CFR 134.32(d)), if the marking of a container of such article will reasonably indicate the origin of such article. Accordingly, if Customs is satisfied that the article will remain in its container until it reaches the ultimate purchaser and if the ultimate purchaser (Master Machine, Inc.) can tell the country of origin of the Unfinished Brake Caliper (Part # 5631978) by viewing the container in which it is packaged, the individual Unfinished Brake Caliper (Part # 5631978) would be excepted from marking under 19 U.S.C. 1304 (a)(3)(D) and 19 CFR 134.32(d). Accordingly, marking the container in which the Unfinished Brake Calipers (Part # 5631978) are imported and sold to the ultimate purchaser, in lieu of marking the article itself, is an acceptable country of origin marking for the imported Unfinished Brake Calipers (Part # 5631978) provided the port director is satisfied that the article will remain in the marked container until it reaches the ultimate purchaser.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if--
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States …
The Unfinished Brake Caliper (Part # 5631978) does not qualify for preferential treatment under the NAFTA because it is manufactured and produced in Italy.
This ruling is being issued under the provisions of Parts 177 and 181 of the Customs Regulations (19 C.F.R. 177, 181).
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 Richard Laman at 646-733-3017.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division