CLA-2-85:OT:RR:NC:N1:110
Mr. Raymond Heroux
Heroxx Logistix, Inc.
580 Lavérendrye Drive
Ottowa, Ontario K1J7B8
Canada
RE: The tariff classification and country of origin determination of patch panels from Canada
Dear Mr. Heroux:
In your letter dated April 16, 2014, on behalf of your customer Belden Canada Inc., you requested a tariff classification and a country of origin ruling. Samples were submitted and will be returned to you.
The item under consideration is described as the AX103254 patch panel. It is used for electronic signal distribution and connection, such as IT, video/audio and telecom for indoors environments. The item is rated for a voltage not exceeding 1000 volts. The patch panel consists of 24 RJ45 connectors (or “modular jacks”) that are attached to a metal panel, along with brackets and a “cable management bar”.
It is stated that the individual RJ24 connectors (24 in each patch panel) are imported into Canada from various suppliers in China. Each connector will be manually assembled into the sub-assembly, item number PX104654-A32 in Montreal, Canada. The assembly in Canada will encompass the insertion of the 24 connectors into the appropriate opening in the sub-assembly to “snap” them into place. It is also stated that the sub-assembly is usually made in China, and occasionally in Canada. The complete AX103254 patch panel is then packaged along with an instruction sheet, a label, a label holder, hook-and-loop ties, brackets and screws.
You have stated that the AX103254 patch panel is complete and ready to use, and it is correctly classified as “panel… equipped with two or more apparatus of heading …8536…HTSUS” therefore, it is classifiable in subheading 8537.10.90., HTSUS.
You cited ruling H020140, dated May 3, 1010, that classified a “telecommunication cabinet” in subheading 8537.10.90, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of headings 8535 or 8536, for electric control or the distribution of electricity…: For a voltage not exceeding 1,000 V: Other:" You also cited ruling N02482, dated February 6, 2008 that classified cabinets and racks in subheading 9403.20.0030, which provides for “other metal furniture”. Accordingly, you assert that the sub-assembly is appropriately classified in subheading 9403.20.00, HTSUS.
The tariff shift rule for subheading 8537.10 set forth in GN 12(t), HTSUS, is as follows:
121. (A) A change to heading 8537 from any other heading, except from tariff items 8538.90.10, 8538.90.30 or 8538.90.60; or (B) A change to heading 8537 from tariff items 8538.90.10, 8538.90.30 or 8538.90.60, whether or not there is also a change from any other heading, provided there is a regional value content of not less than: 60 percent where the transaction value is used, or 50 percent where the net cost method is used.
The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations (19 CFR Part 102). Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes.
Section 102.11(a) states that the country of origin of a good is the country in which: (1) wholly obtained or produced; (2) the good is produced exclusively from domestic materials; or (3) Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in Section 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.
The applicable change in tariff classification for 8537 set out in section 102.20(o), Section XVI, Chapters 84 through 85 of the Customs Regulations provides: A change to heading 8537 from any other heading.
Based on the samples and the information provided, your proposed classification in subheading 9403.20.00, HTSUS for the sub-assembly, item number PX104654-A32 would not apply. The “telecommunication cabinet” in ruling H020140 that you have cited contained multiple telecommunication cross-connection blocks with testing probes. Therefore, the telecommunication cabinet in this ruling was classified in subheading 8537.10.90, HTSUS. The subject sub-assembly appears to mount to a connector assembly and it is not an article or part of heading 9403, HTSUS. Also, the cabinets and racks in ruling N02482 were floor standing metal cabinets and wall mounted metal racks, which this sub-assembly is not.
The sub-assembly, item number PX104654-A32 is classified in subheading 7326.90.8588, HTSUS, as other articles of iron or steel. Also, the 24 individual RJ45 connectors that are imported from China are classified as “rack and panel connectors” in subheading 8536.69.40, HTSUS. The sub-assembly, item number PX104654-A32 with the 24 RJ45 connectors would undergo the applicable tariff shift rule for subheading 8537.10 set forth in GN 12(t), HTSUS, and would satisfy the NAFTA rule 121 (A).
The applicable subheading for the AX103254 patch panel will be 8537.10.90, HTSUS, which provides for, in pertinent part: "…cabinets… equipped with two or more apparatus of heading 8535 or 8536, for electrical control or the distribution of electricity…, other than switching apparatus of heading 8517: For voltage not exceeding 1,000 V: Other…." The column one, general rate of duty is 2.7 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/.
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 Hope Abada at [email protected].
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division