CLA-2-87:OT:RR:NC:N1:101
Colleen Johnston, Bookkeeper
K.G. Industries Ltd.
P.O. Box 1157
Osoyoos, British Columbia V0H1V0
CANADA
RE: The tariff classification of axle repair kits from Canada, Taiwan and the United States
Dear Ms. Johnston,
In your letter dated January 25, 2011, you requested a tariff classification and country of origin ruling.
The items concerned are three (3) King Pin Kits (#’s 579-1044B KGS150, KA349C KGS250 &
KA531 KGS230). You state in your request that the kits are packaged in sealed cardboard boxes containing approximately (depending upon the kit) between 44 and 54 assorted pieces, which include King Pins, King Pin Bushings, Lock Pins, Thrust Washers, Thrust Bearings, Dust Caps, Nuts, Bolts, Screws, Lock Washers, Grease Fittings, Jam Nuts and O-Rings.
The Kingpin is a hardened steel pin that is passed through the steering knuckle and axle end. The steering knuckle pivots about the kingpin. Kingpins were used on early solid-axle front suspensions because they were sturdy and allowed the wheels to pivot in one plane for steering. To be adapted to A-arm suspension systems, Kingpins had to be fitted with additional pivoting members at the top and bottom.
The purpose of the King Pin Kits is to facilitate the repair and overhaul of the Kingpin assembly onto an automotive axle.
579-1044B KGS150 contains -
2 King Pins CANADA
4 King Pin Bushings CANADA
2 Lock Pins CANADA
2 ½” NC Nuts TAIWAN
2 Thrust Washers USA
2 Thrust Bearings USA
4 Dust Caps CANADA
12 ¼” NF Bolt s USA
12 ¼” Lock Washer USA
2 1¾” NC Screw Sets TAIWAN
2 ?” NC Jam Nuts TAIWAN
KA349C KGS250 contains -
2 King Pins CANADA
4 King Pin Bushings CANADA
2 Lock Pins CANADA
2 ½” NC Nuts TAIWAN
2 Thrust Washers USA
2 Thrust Bearings USA
4 Dust Caps CANADA
12 ¼” NF Bolt s USA
12 ¼” Lock Washers USA
2 1¾” NC Screw Sets TAIWAN
2 ?” NC Jam Nuts TAIWAN
4 ?” Grease Fittings USA
4 O-rings TAIWAN
KA531 KGS230 contains -
2 King Pins 2 ¼” CANADA
4 King Pin Bushings CANADA
2 Thrust Washers USA
2 Bearings CANADA
4 Dust Caps CANADA
12 ¾” NF Bolts USA
12 ¼” Lock Washers USA
2 1¾” NC Screw Sets TAIWAN
2 ?” NC Jam Nuts TAIWAN
2 O-rings TAIWAN
The applicable classification subheading for the King Pin Kits (#’s 579-1044B KGS150, KA349C KGS250 & KA531 KGS230) will be 8708.80.6590, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts … of … motor vehicles … : Suspension system and parts thereof … : Parts: Other: Other: 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, you requested a ruling on the Kits’ Country of Origin.
The components of the King Pin Kits can be used together or piecemeal as needed for any individual repair that presents itself for the axle of a particular vehicle, therefore there is no unified country of origin for the Kits as entireties. The original country of origin of each individual component of the Kits remains as it was when initially imported into Canada.
You state that the components of the Kits are imported from various countries into Canada. They are then packaged into cardboard boxes, sealed with tape, labeled with a part number and Kit name, then are sold as such.
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. If an imported article is to be sold at retail in its imported form, the purchaser at retail is the ultimate purchaser. In this case, the ultimate purchaser of the King Pin Kits (#’s 579-1044B KGS150, KA349C KGS250 & KA531 KGS230) is the consumer who purchases the product at retail.
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 can tell the country of origin of the King Pin Kits (#’s 579-1044B KGS150, KA349C KGS250 & KA531 KGS230) by viewing the container in which it is packaged, the individual components within the Kits 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 Kit components 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 King Pin Kits (#’s 579-1044B KGS150, KA349C KGS250 & KA531 KGS230) provided the port director is satisfied that the article will remain in the marked container until it reaches the ultimate purchaser. The cardboard boxes of the King Pin Kits (#’s 579-1044B KGS150, KA349C KGS250 & KA531 KGS230) should be marked “Made in Canada, the United States and Taiwan.”
This ruling is being issued under the provisions of Parts 134 and 177 of the Customs Regulations (19 C.F.R. 134, 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 Richard Laman at 646-733-3017.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division