CLA-2-85:OT:RR:NC:N1:112
Karl F. Krueger
Radix Group International dba
DHL Global Forwarding
2660 20th Street
Port Huron, MI 48060
RE: The tariff classification of electric actuators from Mexico
Dear Mr. Krueger:
In your letter dated March 5, 2014, you requested a tariff classification and status under the North American Free Trade Agreement (NAFTA), on behalf of your client, Mirror Controls International.
The items in question are motor actuators (the 260 series and the 270 series). These devices contain an electric motor, motor cover, fixing washer, clutch spring, pressure plate, clutch gear, bearings, o-rings, washer, frame, worm gear, housing, detent ring, seal ring, etc. The motor actuator assembly is assembled in Mexico from parts which originate in Mexico, the United States and various other countries as listed in your request.
The actuators control the positioning of automotive exterior side mirrors. They, in turn, are controlled by a switch in the driver’s cockpit which is not included in this request. The motor for the actuators is less than 5 watts, DC, and brushless.
The applicable subheading for the motor actuators (the 260 series and the 270 series) will be 8501.10.4040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Electric motors and generators…: Motors of an output not exceeding 37.5 W: Of under 18.65 W: Other: DC: Brushless." The general rate of duty will be 4.4%.
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/.
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.
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). The goods 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 177 of the Customs Regulations (19 C.F.R. 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 Karl Moosbrugger at Karl.Moosbrugger @ CBP.DHS.GOV.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division