CLA-2-85:OT:RR:NC:N1:112
Mr. Michael F. Rullis, CHB
General Manager
R.L. Jones Customhouse Brokers
8830 Siempre Viva Road, Suite 100
San Diego, CA 92154
RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a rotor assembly from Mexico; Article 509
Dear Mr. Rullis:
In your letter dated October 11, 2008, on behalf of Pacific Magnetics, Inc., you requested a ruling on the status of a rotor assembly from Mexico under the NAFTA.
The merchandise concerned is a rotor assembly (part # 020-0475). After importation into the United States, this rotor assembly will be incorporated into an electric motor for an air pump, used as a breathing apparatus for treatment of Sleep Apnea. The rotor assembly is assembled in Mexico from three separate components. The first component is a motor shaft from Taiwan (classifiable under HTSUS subheading 8503.00.7500), the second component is a ring magnet from China (classifiable under HTSUS subheading 8505.11.0000), and the third component is a lamination assembly hub from South Korea (classifiable under HTSUS subheading 8503.00.7500). During the assembly process that takes place in Mexico, the lamination assembly hub is fitted over the motor shaft and the ring magnet is fitted over the lamination hub. Adhesive is used during the assembly process. The finished product is a rotor assembly for an electric motor. The maximum output of finished electric motor is 17.4 watts.
You proposed classification under subheading 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.” However, it is the opinion of this office that the rotor assembly (part # 020-0475) is more specifically provided for under subheading 8503.00.35 which provides for “Stators and rotors for the goods of heading 8501.”
The applicable tariff provision for the rotor assembly (part # 020-0475) will be 8503.00.3500, 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: Stators and rotors for the goods of heading 8501: 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/.
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; or
(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or
(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for “parts” and used in the production of such goods does not undergo a change in tariff classification because--
(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or
(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.
Based on the facts provided, the merchandise (rotor assembly part # 020-0475) does not qualify for preferential treatment under the NAFTA because none of the above requirements are met.
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 Steve Pollichino at (646) 733-3008.
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, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division