CLA-2-84:OT:RR:NC:N1:106
Mr. Mark Noonan
Structured Solutions LLC
54 St John Place
New Canaan, CT 06840
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Wheeled Snow Shovel from United States
Dear Mr. Noonan:
In your letter dated May 3rd, 2011, you requested a ruling on the status of wheeled snow shovel called Sno Wovel / Snow Wolf from United States under the NAFTA.
The device, commercially known as a Snowovel, is a mechanical snow shovel. It is comprised of a snow shovel with an elongated handle that is mounted, at the middle portion of the handle, onto the axle of a large wheel. The user is said to be able to lift and transport snow a long distance then by effecting downward force on the handle, effect the ejection of the shovel’s contents. The applicable subheading for the mechanical snow shovel will be 8428.90.0190, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other lifting, handling…machinery: other machinery, other. The rate of duty will be free.
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/.
According to your submission and the associated documents, the tire, hardware bag, shovel blade and 2pc wheel were produced in the United States. All the rest components, such as hinge link, handle bar, lower frame, and upper frame were produced in China. The complete unit was assembled in the USA.
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b) and 12(c), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
(b)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--
(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;
The components when assembled in the U.S. form a new item of commerce. The value of the non-originating materials is only 26.7% of the total value.
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, and the Regional Value Requirements are met. The snow shovel meets the requirements of HTSUS General Note 12(b)(ii)(A) and 12(c) (i). The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements including Regional Value Content requirements specified in General Note 12(t).
This ruling is being issued under the provisions of Part 181 of the Customs Regulations (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 Mark Palasek at (646) 733-3013.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division