CLA-2-88:OT:RR:NC:N2:206
Michael Unsworth
Global Transportation Management LLC
34450 Industrial Rd Livonia, MI 48150-1308
RE: The tariff classification and country of origin of an aircraft
Dear Mr. Unsworth:
In your letter dated July 15, 2023, you requested a tariff classification and country of origin determination ruling.
The article under consideration is an Embraer Phenom 300 Aircraft (SN50500146). You state that the aircraft was manufactured in Brazil in 2013, and it was originally sold and imported into China. The aircraft has less than 1000 hours and the seller confirmed that no modifications have been made to the aircraft, as it is in the same condition it was when it left the factory. The Phenom 300 is a 7-passenger aircraft and airworthy. Its unladen weight is 11,583 pounds.
The applicable subheading for the Embraer Phenom 300 Aircraft (SN50500146) will be 8802.30.0180, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other aircraft (for example, helicopters, airplanes, except unmanned aircraft of heading 8806); spacecraft (including satellites) and suborbital and spacecraft launch vehicles: Airplanes and other aircraft, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg: Used or rebuilt: Other aircraft.”. The rate of duty will be Free.
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 at https://hts.usitc.gov/current.
The "country of origin" is defined in 19 CFR 134.1(b) as "the country of manufacture, production, or growth of any article of foreign origin entering the United States. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the 'country of origin' within the meaning of this part.”
You state that the Phenom 300 aircraft is manufactured in Brazil. No modifications were done to the aircraft after its importation to China. However, it was in use in China for approximately ten (10) years.
In Ashdown, U.S.A. Inc. v. United States, 696 F. Supp. 661 (CIT 1988), the court held that a printing press, which was continually used in West Germany for nine years and which was not intended at the time of original sale to be exported to the U.S., became a bona fide part of the commerce of West Germany and was therefore, not an import from East Germany, where the printing press was produced. In Headquarters Ruling Letter (“HRL”) 561209, dated May 4, 1999, Customs held that used automotive parts (master cylinders, brake cylinders, cv joints) incorporated in vehicles in use in the U.S. or Canada and not marked with a country of origin were considered to be of U.S. or Canadian origin respectively. In HRL 559968, dated May 7, 1997, Customs determined that the origin of rebuilt automobile axle assemblies was the country where the automobiles were operated. In HRL 559968, Customs stated that: “Ashdown supports the proposition that the connection to the country where an article was built may be broken due to the extended period of time that the article was in use in another country.” Customs stated in HRL 561209 that “Customs has applied the principles of Ashdown primarily in instances where the country of origin of used articles cannot be determined. Accordingly, we believe that the approach taken in HRL 732258 to articles already marked with their country of origin is appropriate.”
Upon request, you supplied this office with the Export Certificate of Airworthiness from ANAC, which is a Federal Aviation Administration (FAA) equivalent in Brazil, confirming the aircraft was manufactured by Embraer in Brazil. In addition, the aircraft is marked with its country of origin as Brazil. As a result, the country of origin for the Phenom 300 aircraft will remain to be Brazil.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a Customs Service field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division