CLA-2-85:OT:RR:NC:N2:209
Jonathan Krupko
Thermo Ramsey LLC
27 Forge Parkway Franklin, MA 02038
RE: The tariff classification and country of origin of metal detector systems
Dear Mr. Krupko:
In your letter dated June 25, 2024, you requested a tariff classification and county of origin determination for purposes of applying trade remedies under Section 301 of the Trade Act of 1974.
The items concerned are referred to as the Thermo Scientific Quickfit Metal Detector Conveyor Systems (Quickfit Conveyor with Apex Metal Detector and Quickfit Conveyor with Sentinel Metal Detector).
Both models of the QuickFit Metal Detector Conveyor System consist of three main components: Conveyor, Metal Detector, and Reject. The conveyor assembly is a material handler that feeds objects through the metal detector. The metal detector performs the metal detection and alert/signaling function as items are passed through it. The rejection assembly removes nonconforming products from the line.
The metal detection units incorporate LED indicator lights which are used to indicate faults, product presence, and metal contamination alerts. They also incorporate LCD screens which provide a visual indication or various operational and detection levels using a simple bar graph with a preset fault parameter that results in the bars changing color indicating the presence of metal.
The finished system can also be fitted with a light/horn arm, which would provide an additional signaling option.
The conveyor belt component and the rejecter component are manufactured within Mexico. The actual metal detector unit is manufactured in China, then shipped to Mexico for assembly with the conveyor and rejecter components.
Note 3 to Section XVI, HTSUS, provides: Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
The metal detector conveyor systems would be considered composite machines. Based upon the facts presented, it is the opinion of this office that the unit's principal function is provided by the metal detector unit.
The applicable subheading for the Thermo Scientific Quickfit Metal Detector Conveyor Systems (Quickfit Conveyor with Apex Metal Detector and Quickfit Conveyor with Sentinel Metal Detector) will be 8531.80.9051, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Electric sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530; parts thereof: Other apparatus: Other: Other. The general 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/.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8531.80.9051, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty.At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 8531.80.9051, 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.
Regarding the country of origin, though the USMCA origin rules within 19 CFR Part 102 are used to determine the country of origin for marking purposes, the substantial transformation test determines the origin for sections 201, 232 and 301 trade remedy purposes. For tariff purposes, the courts have held that a substantial transformation occurs when an article emerges from a process with a new name, character or use different from that possessed by the article prior to processing. United States v. Gibson-Thomsen Co., Inc., 27 CCPA 267, C.A.D. 98 (1940); National Hand Tool Corp. v. United States, 16 CIT 308 (1992), aff'd, 989 F. 2d 1201 (Fed. Cir. 1993); Anheuser Busch Brewing Association v. The United States, 207 U.S. 556 (1908) and Uniroyal Inc. v. United States, 542 F. Supp. 1026 (1982).
Based upon the facts presented, it is the opinion of this office that the metal detector unit which is manufactured in China is the dominant component that provides the character of the finished article. The Chinese metal detector has a pre-determined end use when exported from China. The assembly/manufacturing operation performed within Mexico does not effect a substantial transformation of that product. The metal detector unit retains its identity and predetermined end use. Therefore, since a substantial transformation does not occur as a result of the Mexican processing, the origin of the Thermo Scientific Quickfit Metal Detector Conveyor Systems (Quickfit Conveyor with Apex Metal Detector and Quickfit Conveyor with Sentinel Metal Detector), for 301 trade remedy purposes, is China.
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 Steven Pollichino at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division