CLA-2-84:RR:NC:1:102 D82151
Ms. Paula M. Connelly
Middleton & Shrull
44 Mall Road (Suite 208)
Burlington, MA 01803-4530
RE: The tariff classification and status under the North
American Free Trade Agreement (NAFTA), of tapered roller
bearings from Canada; Article 509
Dear Ms. Connelly:
In your letter dated September 2, 1998, you requested a
ruling on the tariff classification and status under the North
American Free Trade Agreement (NAFTA) of tapered roller bearings
from Canada.
The tapered roller bearings will be produced in Canada from
non-originating materials. A complete bearing will consist of an
outer race, also known as a cup, and inner race, also known as a
cone, a cage and a set of tapered rollers. Photographs of the
component materials were submitted.
The roller sets and cages will enter Canada as finished
articles ready for direct use in the production of the bearings.
The cups and cones will be manufactured in Canada from non-originating steel forgings. The forgings are net shape blanks
which approximate the outline of the finished article they will
form. Although the forgings will undergo significant processing
in Canada, absent evidence to the contrary, the sole use of the
forgings is for completion into finished cups and cones.
The applicable tariff provision for the tapered roller
bearings will be 8482.20.0040, Harmonized Tariff Schedule of the
United States Annotated (HTSUSA), which provides for other cup
and cone assemblies entered as a set, with cups having an outside
diameter not exceeding 102 millimeters. The general rate of duty
will be 5.9 percent ad valorem.
In order for the tapered roller bearings to be eligible for
the tariff treatment and quantitative limitations provided under
the NAFTA, the bearings must have been transformed in Canada so
that each of the non-originating materials used in their
production undergoes a change in tariff classification described
in HTSUSA General Note 12(t)/84.241(A) or (B).
The non-originating steel forgings fail to meet the
requirements of HTSUSA General Note 12(t)/84.241(A) because under
the HTSUSA the forgings are classified as unfinished cups and
cones in subheading 8482.99.15, HTSUSA.
Under HTSUSA General Note 12(t)/84.241(B), each of the non-originating materials, including the steel forgings, used in the
production of the bearings will satisfy the required changes in
tariff classification, but the bearing will also be subject to a
Regional Value Content (RVC) requirement of 60% where the
transaction value method is used or 50% where the net cost method
is used. Tapered roller bearings eligible for preferential
treatment under the NAFTA will be entitled to a free rate of duty
upon compliance with all applicable laws, regulations, and
agreements.
Because of insufficient information in your ruling request,
Customs has not addressed the Regional Value Content (RVC) of the
subject goods. If you desire a ruling regarding the RVC of your
goods and their eligibility for NAFTA preferential treatment, the
information noted in Section 181.93(b) of the Customs Regulations
(19 CFR 181.93(b)), to the Director, Commercial Rulings Division,
Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W.,
Washington, D.C. 20229, along with a copy of this letter.
This ruling is being issued under the provisions of Part 181
of the Customs Regulations (19 CFR 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 Kenneth
T. Brock at 212-466-5493.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division