CLA-2-76:OT:RR:NC:1:117
Ms. Camille Gelinas
PCP – Canada
905 Rue de L’Innovation
La Baie
Quebec, G7B 3N8
Canada
RE: The tariff classification of aluminum magnesium alloy from Canada
Dear Ms. Gelinas:
In your letter dated February 22, 2012 you requested a tariff classification ruling.
The product you are planning to import is described as an alloy of a minimum of 51 percent aluminum and maximum 49 percent magnesium in two to four inch irregular pieces broken off from cast sows. The broken pieces are in the size requested by the end user foundries. The starting material to produce the aluminum magnesium sows are aluminum and magnesium swarfs, chips and turnings spoiled with cutting oil during previous milling, turning and finishing operations. The origin of the chips, swarfs and turnings are producers in Canada and the United States.
In accordance with Section XV, Note 5(a), an alloy of base metals is to be classified as an alloy of the metal which predominates by weight over each of the other metals.
Since the aluminum predominates by weight the applicable subheading for the aluminum alloy pieces will be 7601.20.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for unwrought aluminum: aluminum alloys, other, other, other, other, other. The rate of duty will be free.
You also inquired about NAFTA eligibility for these products.
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.
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). According to the information presented all of the materials used are originating in Canada or the United States. The goods will therefore be entitled to a “Special” CA rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
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/.
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 Mary Ellen Laker at (646) 733-3020.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division