CLA-2-83:OT:RR:NC:N1:121

Ms. Mary Kennette
Magna Closures Inc.
521 Newpark Blvd.
P.O. Box 357
Newmarket, Ontario L3Y 4X7
Canada

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of vehicle door locks from Canada; Article 509

Dear Ms. Kennette:

In your letter dated August 4, 2010, you requested a ruling on the status of automotive door power latches with locks from Canada under the NAFTA.

The merchandise under consideration is described as automotive door latches with power locking capabilities. These locking latches differ depending on whether they are used for left or right, front or rear, passenger or driver doors. The locking latches for the driver door may come with an option for a second or double-lock. The double-lock capability secures/locks the door from both inside and outside, thereby preventing the exiting or entering of the vehicle unless this lock is disengaged. The driver door locking latch and front passenger door locking latch are operated by remote fob, key and interior door button. The locking latches for the rear doors are operated by remote fob and interior door button.

The applicable tariff provision for the locking latches will be 8301.20.0060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for padlocks and locks (key, combination or electrically operated) of base metal... locks of a kind used on motor vehicles, other. The rate of duty will be 5.7 percent ad valorem. 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/.

The documentation you provided indicates that the motor assemblies for the locking latches are made in China and that all other components are made in Germany. These components include the inside release lever, cartridge assembly, lock lever, lock lever spring, inside lock lever, thrust plate retainer, inside release rivet, lock gear pin, front driver cover w/seal, lock gear, inside lock clip, gear double lock, inside release spring, outside lock lever, lock toggle spring, fast unlock link, double lock lever, outside lock knob w/magnet, and gasket paste. Once imported into Canada, all components are assembled into the completed products.

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; or

(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--

(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or

(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or

(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for “parts” and used in the production of such goods does not undergo a change in tariff classification because--

(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or

(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts, provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.

You have indicated that you believe the merchandise satisfies the requirements of HTSUS General Note 12(b)(ii)(A). General Note 12(t) for Chapter 83, 1(A) requires a change to subheadings 8301.10 through 8301.50 from any other chapter. The Bill of Materials you provided indicates that the Inside Release Lever has not undergone the required tariff shift. This component was classified in HTS 8302.30 upon its importation into Canada. HTS 8302 falls within the same chapter as HTS 8301.20, the classification of the finished product. Consequently, the required change in chapter has not been met.

Based on the facts provided, this merchandise does not qualify for preferential treatment under the NAFTA because none of the above requirements are met.

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 Barbara Kaiser at (646) 733-3024.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177.

Sincerely,

Robert B. Swierupski
Director
National Commodity Specialist Division