CLA-2-85:OT:RR:NC:N1:112
Ms. Heather Ganley
Paralegal
Taco, Inc.
1160 Cranston Street
Cranston, Rhode Island 02920
RE: The tariff classification and country of origin marking requirements of a spring clip from Canada
Dear Ms. Ganley:
In your letter dated June 16, 2008, you requested a tariff classification and a country of origin marking ruling.
The item concerned is referred to as a spring clip. The spring clip is a formed, stamped part made of high tensile stainless steel. Once imported into the United States the spring clip will be incorporated into the TACO SBV Motorized Zone Valve Actuator. It is part of the actuator’s latch assembly and is used to hold the actuator in the open position when necessary.
The applicable subheading for the spring clip will be 8503.00.7500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts suitable for use solely or principally with the machines of heading 8501 or 8502: Other: For motors of under 18.65 W”. The general rate of duty will be 6.5%.
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 addition, you requested a ruling on country of origin marking.
You state that the spring clip, which is manufactured in Canada, will be imported into the United States and substantially transformed into a product of the United States when it is assembled into the finished valve actuator. In the United States, in order to manufacture the complete valve actuator, the spring clip will be combined with a cover, housing, gears, bracket, lever, motor, spline, clutch, wires, switch, screws and washers. The spring clip is only one small part of the overall actuator assembly. As such, you believe that the spring clip is entitled to a country of origin marking waiver pursuant to 19 C.F.R. 134.35.
The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate to the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 U.S.C. 1304.
The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.
Section 134.1(b) of the regulations, defines "country of origin" as
the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin. (Emphasis added).
Section 134.1(j) of the regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish.
In order to determine the country of origin marking requirements we must first apply the NAFTA Marking Rules in order to determine whether the imported spring clip "is a good of a NAFTA country", prior to being further processed in the U.S.
Part 102 of the regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes.
Applying the NAFTA rules of origin set forth in Part 102 of the regulations to the facts of this case, we find that, for marking purposes, the imported spring clip is a good of a NAFTA country prior to being further processed in the U.S.
The only issue which remains is whether the U.S. processor is the ultimate purchaser within the meaning of section 134.35(b). Section 134.35(b) of the regulations, provides that
a good of a NAFTA country which is to be processed in the United States in a manner that would result in the good becoming a good of the United States under the NAFTA marking rules is excepted from marking. Unless the good is processed by the importer or on its behalf, the outermost container of the good shall be marked in accord with this part.
Based on the facts of this case, we find that the imported spring clip as a result of the further processing performed in the U.S. becomes an article of U.S. origin under Part 102 of the regulations.
Accordingly, the imported spring clips, which are goods of a NAFTA country that become U.S. articles as a result of being further processed in the U.S., in the manner described above, are excepted from marking and only the outermost containers are required to be marked with the country of origin "Canada" if the imported spring clips are not processed by the importer or on its behalf.
This ruling is being issued under the provisions of Part 177 and 181 of the Customs Regulations (19 C.F.R. 177, 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 Steve Pollichino at 646-733-3008.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division