CLA-2-84:OT:RR:NC:N1:103
Brian Rowe
Universal Logistics Inc.
125 Commerce Valley Drive West, Suite 750 Thornhill, ON L3T 7W4 Canada
RE: The tariff classification and United States-Mexico-Canada Agreement (USMCA) eligibility of a roller and chain
Dear Mr. Rowe:
In your letter dated October 3, 2023, you requested a binding ruling on behalf of your client, Triumph Car Wash Parts Limited, concerning the tariff classification and the eligibility under the USMCA of a car wash conveyor roller kit that consists of rollers and chains.
The first product is referred to as a roller and is described as a component of a car wash conveying system. The roller is evenly spaced along the length of a chain that is connected to a sprocket within the car wash conveyor system. As the rollers move with the chain, they contact the front and rear wheels of a vehicle, helping it move along in a car wash tunnel.
The second product to be imported is a log chain for use in a car wash conveyor system. The welded log chain is made of grade 80, heat treated alloy steel and has a 5/8" (15.87 mm) diameter.
The third product to be imported is a 458 forged conveyor chain for use in a car wash conveyor system, referred to as a 458 chain. The pitch is 4" (101.6 mm) and the components are held together by pins.
In your submission, you state the roller, log chain, and 458 chain are imported in a “kit” that is unassembled and should be classified as a single article in heading 8431, Harmonized Tariff Schedule of the United States (“HTSUS”), by application of GRI 2(a). We disagree. The roller and chains are separate and distinct commercial products and therefore classifiable in their respective headings.
The applicable subheading for the roller will be 8431.39.0010, HTSUS, which provides for “Parts suitable for use solely or principally with the machinery of headings 8425 to 8430: Of machinery of heading 8428: Other: Of elevators and conveyors.” The rate of duty will be free.
The applicable subheading for the log chain will be 7315.82.3000, HTSUS, which provides for “Chain and parts thereof, of iron or steel: Other chain: Other welded link: Of alloy steel: Over 10 mm in diameter.” The rate of duty will be free.
The applicable subheading for the 458 chain will be 7315.12.0080, HTSUS, which provides for “Chain and parts thereof, of iron or steel: Articulated link chain and parts thereof: Other chain: Other: Other.” The rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 7315.82.3000 and 7315.12.0080, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, HTSUS, in addition to subheadings 7315.82.3000 and 7315.12.0080, HTSUS, listed above.
You also inquire whether the roller and chains are eligible for preferential treatment under the USMCA. The USMCA was signed by the Governments of the United States, Mexico, and Canada on November 30, 2018. The USMCA was approved by the U.S. Congress with the enactment on January 29, 2020, of the USMCA Implementation Act, Pub. L. 116-113, 134 Stat. 11, 14 (19 U.S.C. § 4511(a)). General Note (“GN”) 11 of the HTSUS implements the USMCA. GN 11(b) sets forth the criteria for determining whether a good is an originating good for purposes of the USMCA. GN 11(b) states:
For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country, as defined in subdivision (l) of this note, is eligible for the preferential tariff treatment provided for in the applicable subheading and quantitative limitations set forth in the tariff schedule as a “good originating in the territory of a USMCA country” only if—
(i) the good is the good is a good wholly obtained or produced entirely in the territory of one or more USMCA countries;
(ii) the good is a good produced entirely in the territory of one or more USMCA countries, exclusively from originating materials;
(iii) the good is a good produced entirely in the territory of one or more USMCA countries using non-originating materials, if the good satisfies all applicable requirements set forth in this note (including the provisions of subdivision (o));
The chains are manufactured in China and therefore not eligible for preferential treatment under the USMCA.
The roller is composed of a forged steel lug, axle bushing, polyurethane outrigger wheels, polyethylene pusher wheels, and fasteners. The components are sourced from Canada, China, and Taiwan. Since the roller contains non-originating materials, it is not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i) and GN 11(b)(ii). We must next determine whether the roller qualifies under GN 11(b)(iii). Since the finished roller is classified under subheading 8431.39, HTSUS, the applicable rule of origin is in GN 11(o)/84.90(A), HTSUS, which provides for “a change to subheadings 8431.10 through 8431.49 from any other heading.” Based on the facts presented, the non-originating materials are classified outside of heading 8431, HTSUS. As such, all foreign materials meet the tariff shift requirement. Accordingly, the roller is eligible for preferential tariff treatment under the USMCA.
 
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 holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division