CLA-2-84:OT:RR:NC:1:102
Jeffrey Allan Bauer
4J-1G Engineering
3727-117 Street N.W.
Edmonton, Alberta, Canada, T6J 1S5
RE: The tariff classification and country of origin marking status of a Thermostat Housing Assembly from Canada.
Dear Mr. Bauer:
In your letter dated December 12, 2014, you requested a tariff classification and marking ruling.
The item under consideration is described as a Thermostat Housing Assembly, Model Number 001, which is manufactured and assembled in Canada. It is stated that the Thermostat Housing Assembly with its components, is designed to regulate the engine temperature by controlling the flow of engine coolant to the radiator. This is accomplished through a self-regulating valve (thermostat) that is installed inside the assembly. The thermostat uses a temperature sensitive pellet to open and close the valve depending upon the temperature of the engine coolant. As the temperature of the engine coolant heats up, the thermostat opens, allowing for more coolant to flow to the radiator.
From all the information submitted, the Thermostat Housing Assembly is comprised of an anodized black CNC machined 6061 aluminum housing with a removable cap. The housing and removable cap are fabricated in Canada. The Thermostat Housing, comes equipped with two anodized black CNC machined 6061 aluminum hose barbs and one 90 degree carbon steel hose barb elbow that is electroless nickel plated. The hose barbs are manufactured in Canada and the barb elbow is manufactured in the U.S. Further, the assembly incorporates a 203 degree Stant thermostat valve, Part Number 48792 or a 190 degree Stant thermostat valve, Part Number 48799. Both valves are produced in the United States. The assembly also comes packaged with stainless steel hardware, which consists of studs, cap screw nuts, flat washers, lock washers, manufactured in China and Durlon™ gaskets manufactured in Canada. Both components are necessary to install the Housing Assembly onto the engine.
Based on the functionality of the Thermostat Assembly, Model Number 001, which is to control the flow of engine coolant to the radiator, the applicable subheading for the thermostat assembly, Model Number 001, will be 8481.80.9045, HTSUS, which provides for other taps, cocks, valves and similar appliances with thermostatic actuators. 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/.
The marking statute, section 304, Tariff Act of 1930, as amended (19 USC 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 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 USC 1304.
The country of origin marking requirements for a “good of a NAFTA country” are also determined in accordance with Annex 311 of the North American Free Trade Agreement (NAFTA), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations, while the marking requirements of these goods are set forth in Part 134, Customs Regulations.
Part 102 of the regulations, set forth the “NAFTA” Marking Rules for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations, sets forth the required hierarchy for determining the country of origin for making purposes.
The NAFTA Marking Rules set forth in 19 CFR 102.11(3), state each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied. The facts of this case are that the assembly is fabricated in Canada and each foreign component (a barb elbow, thermostat valve and stainless steel hardware) made the tariff shift to subheading 8481.10 through 8481.80 from any other heading, or from subheading 8481.90. The elbow and the steel hardware are classified in heading 73, HTSUS, and the thermostat valve is classified as a valve part under subheading, 8481.90, HTSUS. As such, we find that the imported Thermostat Housing Assembly, Model Number 001, is a good of Canada for marking purposes. Though, based on the photographs provided, the Thermostat Housing Assembly, in this case, is not marked with the country of origin. Therefore, if imported as is, it will not meet the country of origin marking requirements of 19 U.S.C. 1304.
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 Sandra Martinez at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division