CLA-2-40:OT:RR:NC:N4:421
Mr. Eduardo Acosta
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 an encoder seal from Mexico; Article 509
Dear Mr. Acosta:
In your letter dated June 30, 2009, on behalf of Hutchinson Seal/DBA National O Ring, you requested a ruling on the status of a seal from Mexico under the NAFTA.
The merchandise is described as an encoder seal for a vehicle, Part #78784200. A description of the manufacturing steps and samples of various components were included with your request. A metal slinger from the United States is sent to France, where a rubber o-ring is molded onto it to form a seal. This seal is sent to Mexico where it is glued to a second seal. The second seal consists of a metal insert ring from France which is sent to Mexico where a rubber o-ring is molded onto it. The two seal components combined form the encoder seal, Part #78784200.
The samples are being returned as you requested.
The applicable tariff provision for the encoder seal, Part #78784200, will be 4016.93.1050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of vulcanized rubber other than hard rubber: other: gaskets, washers and other seals: of a kind used in the automotive goods of chapter 87…other. The general rate of duty will be 2.5 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/.
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 non-originating 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.
The merchandise does not qualify for preferential treatment under the NAFTA because none of the above requirements are met. Since the seals include components that originate in countries other than Mexico, Canada or the United States, General Note 12(b)(i), HTSUS, does not apply. We must next refer to General Note 12(b)(ii)(A), which specifies, in part, that merchandise will qualify as originating goods for NAFTA eligibility if each of the non-originating materials undergoes a change in tariff classification described in subdivision (t). The finished encoder seals are classified within subheading 4016.93.10, HTSUS. The rule applicable to merchandise classifiable in that subheading is found in General Note 12(t) (40.10), which requires a change to subheading 4016.93.10 from any other heading, except from tariff items 4008.19.20, 4008.19.60 or 4008.29.20. You indicated that a rubber o-ring from France will be molded onto the metal slinger. The slinger combined with the o-ring forms a seal. Rubber o-rings and seals are classifiable in subheading 4016.93. The seal components from France do not undergo the tariff shift required by General Note 12(t) (40.10) when combined with other components in Mexico to form seals that are also classifiable in subheading 4016.93.
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 Joan Mazzola at (646) 733-3023.
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, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division