CLA-2-84:OT:RR:NC:N1:102
Ms. Monika Munro
Profreight Brokers, Inc.
35A Brunswick Ave.
Edison, NJ 08117
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of part of a water wheel, or hydraulic turbine, from Canada; Article 509
Dear Ms. Munro:
In your letter dated July 22, 2009 you requested a ruling on the status of a part of a water wheel from Canada under the NAFTA. Photographs were submitted.
The article in question is described as an assembly for a water wheel assembled in Canada from two non-originating parts from Korea and Slovenia. The parts undergo various manufacturing processes in Canada, including machining, assembly and testing, prior to exportation to the United States.
In your request you offer that non-originating parts upon entrance into Canada are parts of water wheels classified in subheading 8410.90.0000, Harmonized Tariff Schedule of the United States (HTSUS). You also offer that the assembly does not undergo a change in classification in Canada and remains classified as a part of a water wheel in HTSUS subheading 8410.90.0000 upon exportation to the United States. Based on the information made available, we agree.
The applicable tariff provision for the subject assembly for the water wheel will be 8410.90.0000, HTSUS, which provides for parts of hydraulic turbines. The general rate of duty will be 3.8 percent ad valorem.
The operations performed in Canada on the non-originating parts for the water wheel assembly do not meet the applicable NAFTA rule of origin, which requires a tariff change to subheading 8410.90 from any other heading. Therefore, the subject assembly will not benefit from preferential tariff treatment under the NAFTA.
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 http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 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 Kenneth T. Brock at (646) 733-3009.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division