CLA-2-84:R:N1:103 815555
Mr. Larry Robinette
Quality Products
3600 W. Dickinson Blvd.
Fort Stockton, TX 79735
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of an unfinished crane from Mexico; Article 509
Dear Mr. Robinette:
In your letter dated October 18, 1995 you requested a ruling on the status of an unfinished crane from Mexico under the NAFTA.
The heavy duty mobile shop crane is a small steel crane which basically consists of a vertical column, an extendable boom arm with a grip hook at the end, a hydraulic cylinder for lifting, and a U-shaped rectangular frame resting on four casters. It will be imported without its hydraulic cylinder or winch, which your firm will include prior to shipping the unit to your customer. The crane has a lifting capacity of two tons.
According to your letter, the Mexican manufacturer buys the steel used in the crane from North American suppliers, and your firm supplies him with nuts and bolts of North American origin. You state that the casters may not be of North American origin, but that they are worth less than 5 percent of the value of the crane. For purposes of this ruling, we assume the steel is produced in North America.
The applicable tariff provision for the unfinished heavy duty mobile shop crane will be 8426.99.0000, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for other cranes. The general rate of duty will be 1.6 percent ad valorem.
The casters are considered to be de minimis per HTSUSA General Note 12(f). Accordingly, the unfinished heavy duty mobile shop crane, being made entirely in the territory of Canada, Mexico, and/or the United States using materials which themselves were originating, will satisfy the requirements of HTSUSA General Note 12(b)(iii). The 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).
This ruling letter is binding only as to the party to whom it is issued and may be relied on only by that party.
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 Alan Horowitz at 212-466-5494.
Sincerely,
Roger J. Silvestri
Director
National Commodity
Specialist Division