Judy L. Cook
TG MISSOURI CORPORATION
2200 Plattin Road
Perryville, MO 63775-3300
RE: The tariff classification and NAFTA Country of Origin of insulated wire harnesses and insulated wire with connectors from South Korea and Mexico
Dear Ms. Cook:
In your letter dated January 3, 2005, you requested a tariff classification ruling.
The items concerned (Parts # 12450153, 16825987, 16825988 and 16826102) are four wire harnesses consisting of wires covered with plastic insulation of various colors and grouped together by black plastic tape. On one end, all the wires are attached to a single plastic connector; at the other end, each grouping of wires is attached to smaller plastic connectors. The items are shown below and following:
The functions of the Wire Harnesses are as follows –
Part 12450153 plugs into a steering column and connects to the Heated Steering Wheel switch and the Right and Left Bezel Switches.
Part 16825987 plugs into the steering column and connects to the Cruise/Resume Set Switch and the Cruise On/Off Switch.
Part 16825988 plugs into the steering column and connects to the Cruise/Resume Set Switch, Cruise On/Off Switch, Radio Switch and the Seek/Band Switch.
Part 16826102 plugs into the steering column and connects to the Radio Switch and the Seek/Band Switch.
The Harmonized Tariff Schedule of the United States (HTSUS) , General Notes (GN) 12 (b) (ii) (A) require that to be “... eligible for the tariff treatment ... as “goods originating in the territory of a NAFTA party” ... they [must] have been transformed in ... Mexico ... so that ... such goods ... undergo (sic) a change in tariff classification as described in subdivision ... (t) of this note ... “. Subdivision (t), Chapter 85, 147. (A) of GN 12 requires “A change to subheading 8544.11 through 8544.60 from any subheading outside that group ... “ to qualify as a “good originating in the territory of [Mexico]”. Since the applicable tariff subheadings for the Wire Harnesses (Parts # 12450153, 16825987, 16825988 and 16826102) and the insulated wires with attached connectors fall entirely within subheadings 8544.11 through 8544.60, they are not considered goods originating in Mexico.
The Code of Federal Regulations, Title 19, Part 181.64 (b) [CFR 19, 181.64(b)] states that “ ... duty-free ... treatment ... shall not apply to goods which, in their condition as exported from the United States to ... Mexico, are incomplete for their intended use and for which the processing operation performed in ... Mexico constitutes an operation that is performed as a matter of course in the preparation or manufacture of finished goods”. Since the insulated wires need to be “harnessed” and/or fitted with connectors in the normal course of their preparation or manufacture to be able to be used as a component of the steering columns, neither the Wire Harnesses (Parts # 12450153, 16825987, 16825988, 16826102) nor the insulated wires fitted with connectors are eligible for duty-free treatment under NAFTA upon their return from Mexico.
The applicable subheading for the Wire Harnesses (Parts # 12450153, 16825987, 16825988 and 16826102) will be 8544.30.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for Insulated ... wire ... whether or not fitted with connectors ... : ... other wiring sets of a kind used in vehicles ... . The rate of duty, whether imported from South Korea or returned from Mexico, will be 5%.
The applicable subheading for the Wires with connectors will be 8544.41.8000, Harmonized Tariff Schedule of the United States (HTS), which provides for Insulated ... wire ... whether or not fitted with connectors ... : Other electric conductors, for a voltage not exceeding 80 V: Fitted with connectors: Other. The rate of duty, whether imported from South Korea or returned from Mexico will be 2.6%.
This ruling is being issued under the provisions of Parts 177 amd 181 of the Customs Regulations (19 C.F.R. 177, 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 Richard Laman at 646-733-3017.
Robert B. Swierupski