CLA-2-84:OT:RR:NC:N1 102
Ray DeLaRosa
Border 2 Border Services
12160 Rojas Dr. Ste.A El Paso, TX 79936
RE: The tariff classification and USMCA eligibility of a head pump and outlet housing
Dear Mr. DeLaRosa:
In your letter dated February 21, 2024, you requested a tariff classification ruling on behalf of Duro Industries LLC. You also inquire whether the head pump and outlet housing are eligible for duty free treatment under the US-Mexico-Canada Agreement (USMCA).
The items under consideration are referred to as an aluminum head pump and an outlet housing. The head pump and outlet housing are parts that complete a cam axial pump that was classified in New York ruling N337928 (February 27, 2024). The cam axial pump was classified within heading 8413, Harmonized Tariff Schedule of the United States (HTSUS), which provides for pumps for liquids, whether or not fitted with a measuring device; liquid elevators. The outlet housing is a specially shaped component that releases water. The head pump functions as a cover for the pump's hydraulic power supply.
In your letter you suggest that the outlet housing and head pump are classified within subheading 8424.90, HTSUS, which provides for parts of mechanical appliances for projecting, dispersing, or spraying liquids, etc. We disagree.
Note 2 to Section XVI, in relevance, states that subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:
(a) Parts which are goods included in any of the headings of chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;
(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529
In this instance, the outlet housing and the head pump are parts solely or principally used with a cam axial pump. The items are component parts that complete the pump. Therefore, in accordance with Note 2(b) to Section XVI, these items will be classified within subheading 8413.91.9085, HTSUS, which provides for Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof: Parts: Of pumps: Other: Of subheading 8413.50.00: Other. The general rate of duty is Free.
In your letter, you also explain the outlet housing and the head pump are of Chinese origin and exported to Mexico for additional manufacturing processes and inquire whether they are eligible for duty free treatment under the USMCA. The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. 4511(a)). General Note (GN) 11, HTSUS, implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA.
GN 11(b) states, in relevant part:
For the purposes of this note, a good imported into the customs territory of the United States from the
territory of a USMCA countryis eligible for the preferential tariff treatment provided for in the applicable
subheading and quantitative limitations set forth in the tariff schedule as a good originating in the territory
of a USMCA country only if -
(i) the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries;
(ii) the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from
originating materials;
(iii) the good is a good produced entirely in the territory of one or more USMCA countries using
non-originating materials, if the good satisfies all applicable requirements set forth in this note (including the
provisions of subdivision (o)); .
Here, both items consist exclusively of non-originating materials and are not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i). Moreover, under GN 11(b)(ii), neither item is a good produced entirely in Mexico exclusively from originating materials. Therefore, we must determine whether the non-originating materials undergo the tariff shift and other requirements provided for in GN 11(b)(iii) and GN 11(o).
The applicable tariff shift rule for merchandise classifiable under subheading 8413.91.9085, HTSUS, is in GN 11(o), HTSUS, which provides, in relevant part:
Chapter 84 - 41. A change to subheading 8413.91 from any other heading
As the outlet housing and head pump, identifiable parts of a pump prior to being imported into Mexico, are classified within heading 8413, as parts, the requisite tariff shift rule is not met. As a result, the finished outlet housing and head pump are not considered originating goods under the USMCA and thus, are not eligible for preferential treatment upon importation into the United States.
The country of origin of the housing and head pump are China. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8413.91.9085, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8413.91.9085, HTSUS, listed above. The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at
https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and
https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division