Mr. Steven Hookey
Schenker of Canada Limited
5935 Airport Road, 9th Floor
Mississauga, Ontario, L4V 1W5
RE: The tariff classification of electrically insulated fitting kits from Canada
Dear Mr. Hookey:
In your letter dated February 18, 2015 you requested a tariff classification ruling on behalf of your client, Canduct Industries Ltd.
The items under consideration are referred to as Winding Insulation Kits, which consist of various sizes and shapes of compressed paperboard, (pressboard). The kit components are cut and further worked to customized specifications and are intended to be used exclusively in the manufacture of large electrical transformers and transformer systems. The pressboard material is stated to have an average electrical insulating property of approximately 35 kV per mm, and an average pressboard thickness of 3 mm. The typical electrical transformer produced using the insulation kits range in output from 200 to 700 MVA.
Each kit comprises all the necessary insulating parts for a large capacity transformer to be assembled after importation. An example of the parts typically included in a kit are, but not limited to, winding cylinders, key spacers, duck strip wrapping, coil supports, structural ribs, etc. The pressboard fittings have been cut to shape, machined, drilled, and further worked to allow for the transformer coils, spacers, and other parts to be assembled.
In N244753, Customs and Border Protection determined that the raw pressboard was properly classified in 4805.93.2000, Harmonized Tariff Schedule of the United States (HTSUS). However, the components comprising the kits under consideration here have been cut, rolled or machined, drilled, planed, and sanded and would therefore be beyond consideration of raw pressboard material. Thus, the fabricated pressboard components have been determined to meet the terms of the headings for electrical insulating fittings in heading 8547, HTSUS.
The applicable subheading for the Winding Insulation Kits will be 8547.90.0010, HTSUS, which provides for "Insulating fittings for electrical machines, appliances or equipment…: Other: Other insulating fittings." The general rate of duty will be 4.6%.
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/.
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 firstname.lastname@example.org.
Gwenn Klein Kirschner
National Commodity Specialist Division