CLA-2-85:RR:NC:1:108 M84900
Mr. Ralph Philp
HOC Global Solutions
3245 American Drive
Mississauga, Ontario L4V 1B8
Canada
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) of a printed circuit assembly of a remote control device from Canada; Article 509
Dear Mr. Philp:
In your letter dated June 28, 2006, on behalf of Solectron Invotronics, you requested a tariff classification ruling.
The subject merchandise, based on the submitted samples, is a printed circuit assembly, which will be contained within the plastic head of a car key. It will first be imported as an unpopulated printed circuit board from Taiwan into Canada. After importation into Canada, this printed circuit board is populated (further manufactured) to produce an active circuit (printed circuit assembly), which after importation into the United States will be “married” with a button and a battery pad for creating a radio remote control device, which forms the plastic head of a car key.
It is stated that the final product (the car key with its plastic head serving as a radio remote control device) will operate as a transmitter in sending a radio signal to a vehicle, thereby identifying itself in sending commands to unlock and lock the vehicle doors. Further, it is stated that when the key is inserted into the vehicle’s ignition system, it communicates with the vehicle, thereby identifying itself, and once the vehicle recognizes that this is a valid key, the engine will start when the key is rotated.
You request that this merchandise should be classified under subheading 8708.99.8080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories: Other: Other: Other: Other. This is supported in noting that that the printed circuit assembly is part of the above device, which plays an important role with respect to its communication with the vehicle.
The subject merchandise, however, is a part that is suitable for use solely with the above-described radio remote control device – considered to be a “machine” for tariff classification purposes - which is classifiable under subheading 8526.92.00, which provides for radar apparatus, radio navigational aid apparatus and radio remote control apparatus: Other: Radio remote control apparatus. Moreover, this subject part would fall under the heading of 8529, HTSUS, which provides for Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528.
This decision is supported by legal note 2 (b) to section XV?, which reads in relevant part: “Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate.” Further, since legal note 2(f) to section XV?? excludes electrical machinery or equipment of chapter 85, consideration of classification under subheading 8708.99.8080, HTS, is precluded from consideration.
The applicable subheading for this printed circuit assembly will be 8529.90.1960, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528: Other: Of radar, radio navigational aid or radio remote control apparatus: Other…. Other. The rate of duty will be 3.2 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/. Further, in regard to general information on importing, please access the “Import” page of our website at www.cbp.gov.
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.
Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). Moreover, the non-originating material, the printed circuit board, undergoes the necessary tariff shift in accordance with General Note 12 (t)/85.94, which reads: A change to tariff items 8529.90.01, 8529.90.03, 8529.90.06, 8529.90.09, 8529.90.13, 8529.90.16, 8529.90.19 or 8529.90.23 from any other tariff item.” The subject merchandise (the printed circuit assembly) 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).
If you have any questions regarding the ruling, contact National Import Specialist Michael Contino at 646-733-3014.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division