Customs and Traffic Manager, RCP, Inc.
2891 Langstaff Road
Concord, ON L4K 4Z2
RE: The tariff classification of Starter Repair Kit for from Canada
Dear Ms. Vasconcelos,
In your letter dated December 21, 2006, you requested a tariff classification ruling.
The item concerned is 37MT Repair Kit 12V (#23864). It is a clear, heat-sealed, polyethylene bag containing approximately 40 assorted pieces, which include O-Rings, Brushes, Washers, Screws and Seals.
The purpose of the Kit is to facilitate the repair and overhaul of an automotive starter, specifically a Starter Motor 37 MT Series.
The applicable classification subheading for 37MT Repair Kit 12V (#23864) will be 8511.90.6040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical … starting equipment of a kind used for spark-ignition or compression-ignition internal combustion engines … starter motors … used in conjunction with such engines; parts thereof: Parts: Other Parts: 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 and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/tata/hts/.
In addition, you requested a ruling on whether the 37MT Repair Kit 12V (#23864) would be eligible for preferential treatment under NAFTA.
The merchandise does not qualify for preferential treatment under the NAFTA because (a) it will not be wholly obtained or produced entirely in the territory of a NAFTA country; (b) it will not be made exclusively from originating materials; (c) one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/Chapter Rule 7: Subheading Rule: 22., HTSUS; and (d) it will not meet the exceptions to the above tariff classification change rules detailed in HTSUS General Note 12(b)(iv).
Finally, you requested a ruling on Country of Origin Marking.
You state that the components of the kit are imported from various countries into Canada. They are then assembled and packaged into kits in Canada and are sold as such. As the components are from various countries, you requested our advice with respect to the Country of Origin marking on the kits. You have also submitted breakout lists of the components of the kit. 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 37MT Repair Kit 12V (#23864) is the consumer who purchases the product at retail. Further, there are a large number of small pieces in the 37MT Repair Kit 12V (#23864), which are too small to have legible markings. Therefore the bag should be marked, "Packaged in Canada with goods from Taiwan, China, Argentina, etc."
This ruling is being issued under the provisions of Parts 134, 177, 181 of the Customs Regulations (19 C.F.R. 134, 177, 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