CLA-2-84:RR:NC:1:102 F81189
Mr. Rick Brunskill
Sulzer Pumps (Canada) Inc.
4129 Lozells Avenue
Burnaby, B.C.
V5A 2Z5
RE: The tariff classification and marking of a diffuser pumping system from Canada
Dear Brunskill:
In your letter dated December 13, 1999 you requested a ruling on the tariff classification and marking of a diffuser pumping system from Canada.
The item in question is described diffuser pumping system consisting of a pump assembly and an electric motor mounted on a base plate. You indicate that the pump assembly may be imported into Canada from Germany as a complete unit , or assembled in Canada from machined components of non-Canadian origin. Descriptive information was submitted.
The pump assembly used in the diffuser pumping system is a multi-stage, centrifugal pump for use in the oil, gas, power and petrochemical industries. Heading 8413, Harmonized Tariff Schedule of the United States, covers machines and appliances for raising or otherwise continuously displacing volumes of liquid, whether they are operated by hand or by any kind of power unit, integral or otherwise.
The applicable subheading for the diffuser pump assembly, whether presented separately or as a pumping system, with motor and base plate, will be 8413.70.2040, HTS, which provides for multistage, single- or double suction, centrifugal pumps. The rate of duty will free.
The marking statute, section 304, Tariff Act of 1930, as amended (19 USC 1304), provides that, unless excepted, every article of foreign origin (or its container) imported into the
U.S. shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or its container) will permit, in such a manner as to indicate the ultimate purchaser in the U.S. the English name of the country of origin of the article. Part 134, Customs Regulations (19 CFR Part 134) implements the country of origin marking requirements and exceptions of 19 USC 1304.
Section 134.1(b) of the regulations, defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. For a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.
Part 102, Customs Regulations (19 CFR Part 102) sets forth the "NAFTA Marking Rules" .Section 102.11, Customs Regulations (19 C.F.R. §102.11), sets forth the required hierarchy for determining whether a good is a good of a NAFTA country for marking purposes. That section states, in part, that the country of origin of a good is the country in which:
(1)The good is wholly obtained or produced;
(2)The good is produced exclusively from domestic materials; or
(3)Each foreign material incorporated in that good undergoes an
applicable change in tariff classification set out in section 102.20
and satisfies any other applicable requirements of that section, and
all other applicable requirements of these rules are satisfied.
“Foreign material” is defined in section 102.1(e), Customs Regulations (19 C.F.R. §102.1(e)), as “a material whose country of origin as determined under these rules is not the same country as the country in which the good is produced.”
Based on the information you presented, components of the diffuser pumping system are produced with U.S. and other foreign materials, as defined in section 102.1(e) of the Customs Regulations. Because these components are neither wholly obtained, nor produced in Canada exclusively from domestic materials, section 102.11(a)(3) of Customs is the applicable rule that must be applied to determine the origin of the articles in question.
Pursuant to section 102.11(a)(3), the country of origin of a good is the country in which each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in section 102.20, Customs Regulations (19 C.F.R. §102.20). Section 102.20 sets forth the specific tariff classification changes and/or other operations, which are specifically required for the country of origin to be determined on the basis of operations performed on the foreign materials, contained in a good.
The diffuser pump assembly, whether presented separately or with a motor and base plate, as a pumping system, is classified under subheading 8413.70, HTSUS. The required tariff shift set out in 19 C.F.R. §102.20(o) section XVI, Chapters 84 through 85, is a change to subheading 8413.11 through 8413.82 from any other subheading, including another subheading within that group.
Applying the NAFTA rules of origin set forth in Part 102 of the regulations to information provided, we find that, for marking purposes, pump assemblies assembled in Canada from foreign components will be considered goods of Canadian origin. Such pump assemblies, when separately imported into the United States, shall be marked to indicate Canada as the country of origin. Further, any diffuser pumping system containing a pump assembly of Canadian origin shall be marked to indicate Canada as the country of origin.
However, if a pump assembly is imported into Canada as a complete unit from Germany, the pump assembly, as well as any diffuser pumping system containing such a pump assembly, will not be considered to be of Canadian origin. Pump assemblies, and pumping systems containing a pump assembly produced in Germany shall, upon importation into United States, be marked to indicate Germany as the country of origin.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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, contact National Import Specialist Kenneth T. Brock at 212-637-7026.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division