CLA-2-83:OT:RR:NC:N4:414
Category: Classification
Tariff No.: 8301.10.8000
Mr. Nick Mauro
Hampton Products International Corporation
50 Icon
Foothill Ranch, CA 92610
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a padlock from China; Article 509
Dear Mr. Mauro:
In your letter dated July 17, 2014 you requested a tariff classification ruling on item 887-00500. You inquire as to whether item 887-00500 is classified as an incomplete or unfinished padlock or as parts of a padlock. Samples were submitted which will be retained by this office.
Item number 887-00500 consists of the following: a steel shackle, 23 stamped steel plates which comprise the body of the padlock, two steel locking bars and two steel locking bar springs which are assembled together, a five-pin locking cylinder made of brass and steel, and a set of two keys made of nickel-plated brass attached to a 16 mm split key ring. All of these components are assembled in China; a rubber band holds the items together at the time of importation.
After importation, item number 887-00500 will be combined with several parts from a domestic supplier to make the final product. The US parts are eight rivets, a spring and a bumper. The rivets and the spring are made of steel and the bumper is made of plastic. The padlock is of cylinder and pin tumbler construction and the width of the padlock is 50 mm.
General Rule of Interpretation 2(a) states that “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.” Since the imported article has the essential character of the complete or finished article, item 887-00500 is considered to be an incomplete or unfinished padlock.
The applicable subheading for item 887-00500 will be 8301.10.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Padlocks and locks (key, combination or electrically operated), of base metal; Padlocks: Of cylinder or pin tumbler construction: Over 3.8 cm but not over 6.4 cm in width. The rate of duty will be 4.8 percent ad valorem.
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/.
You have also requested a determination if the merchandise satisfies the requirements of HTSUS General Note 12(b) under the North America Free Trade Agreement (NAFTA). General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
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--
(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or
(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; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for “parts” and used in the production of such goods does not undergo a change in tariff classification because--
(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to General Rule of Interpretation 2(a), or
(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.
General Note 12(t) for chapter 83, 1(A) requires a change to subheadings 8301.10 through 8301.50 from any chapter. Item 887-00500 is classified under subheading 8301.10.8000, HTSUS, upon its importation into the United States. Consequently, the required change in chapter has not been met. The goods do not qualify for preferential treatment under the NAFTA.
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 Barbara Kiefer at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division