LA-2-84:RR:NC:1 102 E84908
Mr. Karl F. Krueger
AEI Customs Brokerage Services
P.O. Box 5129
Southfield, Michigan 48086-5129
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a circle turn hydraulic cylinder from Canada; Article 509
Dear Mr. Krueger:
In your letter dated July 13, 1999 you requested, on behalf of Champion Road Machinery, a ruling on the tariff classification and status under the North American Free Trade Agreement (NAFTA) of a circle turn hydraulic cylinder from Canada.
The article in question is a described as a circle turn hydraulic cylinder used to control a circle gear which in turn controls the scraping blade of a road grader. Technical drawings and material lists were submitted.
The circle turn cylinder will be assembled in Canada from a linear hydraulic cylinder, two spherical plain bearings and two retainer rings. You indicate that the hydraulic cylinder originates in Canada, while the plain bearings and retainer rings are non-originating materials which are imported into Canada from Germany and Great Britain, respectively. The bearings and retainers will enter Canada as finished articles ready for direct use in the production of the circle turn cylinders.
The applicable tariff provision for the circle turn hydraulic cylinder will be 8412.21.0030, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for hydraulic power engines and motors, linear acting, weld fused type cylinders. The general rate of duty will be free.
In order for the subject articles to be eligible for the tariff treatment and quantitative limitations provided under the NAFTA, the circle turn cylinders must have been transformed in Canada so that each of the non-originating materials used in their production undergoes a change in tariff classification described in HTSUSA General Note 12(t)/84.23(A) or (B).
Under HTSUSA General Note 12(t)/84.23(A), each of the non-originating materials must undergo a change to subheadings 8412.10 through 8412.80 from any other heading. Because under the HTSUSA the bearings and retainers are classified in headings 8483 and 7318, respectively, the non-originating materials used in the circle turn cylinders meet the requirements of HTSUSA General Note 12(t)/84.23 (A).
Part 102, Customs Regulations (19 C.F.R. Part 102) sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Applying the NAFTA rules of origin set forth in Part 102 of the regulations to the information you have provided, we find that, for marking purposes, the imported circle turn hydraulic cylinder is a good of Canadian origin.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 Kenneth T. Brock at 212-637-7026.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division