CLA-2-84:OT:RR:NC:N1:102
Gian Mastroianni Trans American CHB 300 Airborne Parkway, Suite 212 Buffalo, NY 14225 RE: The tariff classification of a hydraulic power unit from Canada Dear Mr. Mastroianni: In your letter dated February 24, 2025, you requested a tariff classification ruling. The merchandise at issue is referred to as a Hydraulic Power Unit, model number T94C405C93F0-01. The unit primarily consists of a gear pump, a manifold assembly, a bell housing, a relief valve, a suction elbow, a pressure hose, and a motor mounted to a steel reservoir. Together, the components of the unit perform a principal function, i.e., to pump pressurized hydraulic fluid to a connected application. The power unit can be used to power a variety of machines, e.g., scissor lifts, presses, vehicle hoists, and a myriad of hydraulically operated machines used in manufacturing processes. In accordance with Note 3 to Section XVI, the applicable subheading will be 8413.60.0030, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof: Other rotary positive displacement pumps: Hydraulic fluid power pumps: Gear type. The general rate of duty is free. You inquire about subheading 9802.00.80, HTSUS, which provides a partial duty exemption for: articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape, or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process, such as cleaning, lubricating, and painting. All three requirements of subheading 9802.00.80, HTSUS, must be satisfied before a component may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full cost or value of the imported assembled article, less the cost or value of the U.S. components assembled therein, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 CFR 10.24).
In your letter, you state the reservoir, certain gaskets, bell housing, adapter, manifold, manifold adapter, ? valves, and the labels are of U.S. origin and exported to Canada in a condition that is ready for final assembly. The U.S. components are imported into Canada without further fabrication. Upon compliance with the documentary requirements of 19 CFR 10.24, these U.S. origin components meet all three requirements of subheading 9802.00.80, HTSUS and are entitled to the duty exemption under subheading 9802.00.80, HTSUS. Products of Canada as provided by heading 9903.01.10 in Section XXII, Chapter 99, Subchapter III, U.S. Note 2(j), HTSUS, other than products classifiable under headings 9903.01.11, 9903.01.12, 9903.01.13, 9903.01.14, and 9903.01.15, HTSUS, will be subject to an additional 25 percent ad valorem rate of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.10, in addition to subheading 8413.60.0030, HTSUS, listed above. Articles that are entered free of duty under the terms of general note 11 to the HTSUS (U.S.-Mexico-Canada Agreement (USMCA)), including any treatment set forth in subchapter XXIII of Chapter 98 and subchapter XXII of chapter 99 of the HTSUS, will not be subject to the additional ad valorem duties provided for in heading 9903.01.10. If your product is entered duty free as originating under the USMCA, you must report heading 9903.01.14, HTSUS, in addition to subheading 8413.60.0030. 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/. 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