CLA-2-84:OT:RR:NC:N1:102
Ray DeLaRosa
Border 2 Border Services
12160 Rojas Ste.A El Paso, TX 79936
RE: The tariff classification and USMCA eligibility of a cam axial pump
Dear Mr. DeLaRosa:
In your letter dated February 1, 2024, you requested a tariff classification ruling on behalf of your client, Duro Industries. You also inquire whether the cam axial pump is eligible for duty free treatment under the United States-Mexico-Canada Agreement (USMCA).
The cam axial pump is designed to be used with a pressure washer. The pump is configured as a reciprocating positive displacement pump that uses the motion of pistons to release water. The pump primarily consists of a housing, springs, a valve plate, valves and pistons that may be positioned vertically or horizontally.
In your letter, you suggest the applicable subheading of the cam axial pump should be 8424.90.9040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines; parts thereof: Parts: Other: Of steam and similar jet projecting machines.” We disagree. As per Section XVI Note 2(a), parts which are goods included in any of the headings of chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings. Since the cam axial pump is clearly identifiable as a pump provided for within heading 8413, it would not be classifiable as a part of a pressure washer.
Therefore, in accordance with Note 2(a) to Section XVI, the applicable subheading for the cam axial pump will be 8413.50.0090, HTSUS, which provides for Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof: Other reciprocating positive displacement pumps: Other: Other. The general rate of duty will be Free.
In your letter, you indicate the cam axial pump is assembled and exported from Mexico and inquire whether the pump is 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, 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, in relevant part: For the purposes of this note, a good imported into the customs territory of the United States from the territory of a USMCA country…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 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)); …. In the instant case, the cam axial pump consists exclusively of non-originating materials and is not considered a good wholly obtained or produced entirely in a USMCA country under GN 11(b)(i). Moreover, under GN 11(b)(ii), the cam axial pump is not a good produced entirely in Mexico exclusively from originating materials. Therefore, we must determine whether the non-originating materials undergo the tariff shift and other requirements provided for in GN 11(b)(iii) and GN 11(o). The applicable tariff shift rule for merchandise classifiable under subheading 8413.50.0090, HTSUS, is in GN 11(o), HTSUS, which provides, in relevant part:
Chapter 84 - 40(A) A change to subheadings 8413.11 through 8413.82 from any other heading;
Since the housings, head assembly, pistons, and piston guide are classified within heading 8413, as parts, the requisite tariff shift rule is not met. As a result, the finished cam axial pump is not considered an originating good under the USMCA and thus, is not eligible for preferential treatment upon importation into the United States.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8413.50.0090, 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., 9903.88.01, in addition to subheading 8413.50.0090, HTSUS, listed above. The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division