CLA-2-73:OT:RR:NC:N1:117
Mr. Aubrey Ghinn
Cougar Concrete Global, Inc.
2000 Rogers Road
Perth, Ontario K7H 1P9 Canada
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a roof guardrail system from Canada; Article 509
Dear Mr. Ghinn:
In your letter dated May 11, 2015, you requested a ruling on the tariff classification and the eligibility of a roof guardrail system for preferential tariff treatment under the North American Free Trade Agreement (NAFTA).
The product under consideration is a roof guardrail system consisting of galvanized or painted pipe, flat steel base plates and cast pipe clamps for connecting the pieces. The pipe and steel base plates originate in Canada while the clamps originate in Canada and China. You indicate that in Canada, the items are cut and assembled into modular sections and then shipped to the United States where they will be assembled onsite into the guardrail system.
The applicable tariff provision for the roof guardrail system will be 7308.90.9590, Harmonized Tariff Schedule of the United States (HTSUS), which provides for structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge sections, lock gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns) of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures of iron or steel: other, other, other, other, other. The general 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/.
In order to determine the eligibility of the roof guardrail system under the North American Free Trade Agreement (NAFTA), a two-step analysis is required. First, the article must be originating under the terms of General Note 12, HTSUS, and 19 CFR 181 and second, the article must qualify to be marked as a good of a NAFTA country under the NAFTA Marking Rules in 19 CFR 102.
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.
Since the components used in the roof guardrail system are not wholly obtained or produced in Canada (some clamps are made in China) and have not been transformed in the territory of Canada, they do not meet the requirements of General Note 12(b)(i) or 12(b)(ii) for subdivisions (r) or (s). Therefore, the tariff shift rules in General Note 12(t) must be applied. HTSUS General Note 12(t), Chapter 73(7) requires “A change to heading 7308 from any other heading….” Based on the information submitted, the non-originating pipe clamps meet the requisite tariff shift.
Section 102.11, Customs Regulations, sets forth the required hierarchy for determining whether a good is a good of a NAFTA country for marking purposes. The requirements of section 102.11 (a), (1) and (2) are not applicable since the roof guardrail system is neither wholly obtained nor produced exclusively from domestic materials. However, the requirement of section 102.11(a) (3) has been met. The non-originating pipe clamps make the requisite tariff shift.
Based on the information provided, this office finds that the roof guardrail system is eligible for NAFTA preferential treatment because it meets the requirements of an originating good under the terms of HTSUS General Note 12(b)(ii)(A) and 19 CFR 181. In addition, the roof guardrail system qualifies to be marked as a good of Canada under the NAFTA Marking Rules in accordance with 19 CFR 102.11(a)(3). As such, this merchandise will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
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 Mary Ellen Laker at [email protected].
Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs and Border Protection, Regulations & Rulings, 90 K Street, N.E. – 10th floor, Washington, DC 20229-1177.
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division