CLA-2-85:RR:NC:N1:112 R03715
Cheryl Ann Corbeil
Compliance Manager,
Cole International
5945 Airport Road
Suite 335
Mississauga, Ontario L4V1R9
CANADA
RE: The tariff classification and NAFTA applicability of a generating set from Canada
Dear Ms. Corbeil,
In your letter dated April 12, 2006, you requested a tariff classification and North American Free Trade Agreement (NAFTA) applicability ruling on behalf of Teleflex Advanced Thermodynamics of Sault Ste. Marie, Ontario.
The item concerned is the PROHEAT GEN4 Multi Function. It is a three-component system consisting of an APU (Auxiliary Power Unit), a CCU (Climate Control Unit and a Multi Function Control Panel.
The APU is a generator (alternator) powered by a diesel engine. It is meant to be installed underneath a truck frame between the truck cab and trailer and is fueled by the truck’s fuel tank. The APU provides power to the CCU and additional power to the truck’s engine and battery, if needed. The CCU provides compressed cooling and coil heating to the cab of the truck. The Multi Function Control Panel controls all functions of the APU and CCU.
The applicable classification subheading for the PROHEAT GEN4 Multi Function, when all three components are imported together, will be 8502.11.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electric generating sets … : Generating sets with compression-ignition internal combustion piston engines (diesel or semi-diesel engines): Of an output not exceeding 75 kVA”.
You requested that a determination be made as to the Country of Origin of the PROHEAT GEN4 Multi Function and provided a cost and country breakdown of all items used as its parts.
Each of the non-originating materials used to make the PROHEAT GEN4 Multi Function has satisfied the changes in tariff classification required under the HTSUS General Note 12(t), Chapter 85., Chapter rule 7: 2.(B). The PROHEAT GEN4 Multi Function is subject to a Regional Value Content (RVC) requirement of 60% under the Transaction Value Method or 50% under the Net Cost Method as required under the rule applicable for goods of HTSUS heading 8502. Assuming the goods are eligible for preferential treatment under the NAFTA, the merchandise will be entitled to a Free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements and its Country of Origin will be considered Canada.
This ruling is being issued under the provisions of Parts 177 and 181 of the Customs Regulations (19 C.F.R. 177, 181).
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, contact National Import Specialist Richard Laman at 646-733-3017.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division