CLA-2-83:OT:RR:NC:N1:121
Mr. Peter T. Devlin
Logistics Manager
Ryerson Inc.
2621 West 15th Place
Chicago, IL 60608
RE: The tariff classification of base metal shell plates and an arm end cap from China
Dear Mr. Devlin:
In your letter dated January 13, 2011, you requested a ruling on the classification and country of origin marking for parts of mud flap hanger brackets. A sample was not submitted with your letter for review.
The merchandise under consideration is three base metal parts for mud flap hanger brackets. After importation this merchandise will be used by your customer in the production of hanger brackets that are used to mount mud flaps to heavy trucks.
Part number 42144469512P is a “shell plate” stamped from a strip of hot rolled pickled and oiled 1018 steel. It is not further processed prior to importation. Part number 2814469512 is a “shell plate” stamped from a strip of 304 2B stainless steel. It is polished before importation. Both shell plates are designed to be welded to a formed arm that will be assembled into a mud flap bracket for a heavy truck.
Part number N200SS-7EC is an “arm end cap” made from 430 bright annealed stainless steel. It is made by stamping, bending and flattening. The arm end cap is designed to be riveted to a formed arm that will be assembled into a mud flap hanger bracket for heavy trucks.
You propose to classify the shell plates in subheading 7326.19.0080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other forged or stamped articles of iron or steel; and to classify the arm end cap in subheading 7326.90.8588, HTSUS, which provides for other articles of iron or steel. We disagree with your proposals because these articles are more specifically provided for in another heading of the tariff. Heading 8302, HTSUS, provides for base metal mountings, fittings and similar articles suitable for, among other things, motor vehicles; and base metal parts thereof. Since the shell plates and arm end cap are made of base metal and are parts of mounting brackets that attach mud flaps to a truck, we believe that they meet the terms of heading 8302.
The applicable subheading for the steel shell plates and arm end cap will be 8302.30.3060, HTSUS, which provides for base metal mountings, fittings and similar articles, other mountings, fittings and similar articles suitable for motor vehicles; and parts thereof, of iron or steel, of aluminum or of zinc, other. The rate of duty will be 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/.
You have also requested a determination on whether the proposed method of marking the container in which the merchandise is imported with the country of origin in lieu of marking the merchandise itself is an acceptable country of origin marking. You have stated that the imported merchandise will be delivered to your U.S. customer in unopened, marked boxes. The U.S. customer will weld or rivet the imported merchandise to formed arms that will be assembled into mud flap hanger brackets.
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. Section 134.41(b), Customs Regulations (19 CFR 134.41(b)), mandates that the ultimate purchaser in the U.S. must be able to find the marking easily and read it without strain. Section 134.1(d), defines the ultimate purchaser as generally the last person in the U.S. who will receive the article in the form in which it was imported. 19 CFR 134.1(d)(1) states that if an imported article will be used in manufacture, the manufacturer may be the ultimate purchaser if he subjects the imported article to a process which results in a substantial transformation of the article. The case of U.S. v. Gibson-Thomsen Co., Inc., 27 C.C.P.A. 267 (C.A.D. 98) (1940), provides that an article used in manufacture which results in an article having a name, character or use differing from that of the constituent article will be considered substantially transformed and that the manufacturer or processor will be considered the ultimate purchaser of the constituent materials.
In HQ 731432 (June 6, 1988), Customs set forth some factors to be considered in determining whether imported goods combined in the U.S. with domestic products were substantially transformed for country of origin marking purposes. The following six factors were considered: 1) whether the article is completely finished; 2) the extent of the manufacturing process of combining the imported article with the domestic article as compared with the manufacturing of the imported article; 3) whether the article is permanently attached to its counterparts; 4) the overall importance of the article to the finished product; 5) whether the article is functionally necessary to the operation of the finished article, or whether it is an accessory which retains its independent function; and 6) whether the article remains visible after the combining. These factors are not exclusive and there may be other factors relevant to a particular case and no one factor is determinative.
Upon review of the information you have provided, we are unable to determine whether the instant merchandise undergoes a substantial transformation. Please provide the following additional information: 1) pictures of the hanger brackets produced by your U.S. customer with the shell plates and arm end caps clearly identified; 2) a thorough description of all processes involved in producing the hanger brackets; 3) a value breakdown of the hanger brackets including the cost of all parts including the shell plates and the arm end cap; 4) a detailed description of the shell plate and arm end cap’s functions.
If you decide to resubmit your request, please include all of the material that we have returned to you and mail your request to U.S. Customs and Border Protection, Customs Information Exchange, 10th Floor, One Penn Plaza, New York, NY 10119, attn: Binding Rulings Section. If your request was submitted electronically and the information required does not involve sending a sample, you can re-submit your request and the additional information electronically.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 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 Barbara Kaiser at (646) 733-3024.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division