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NY E87734

October 15, 1999

CLA-2-84:RR:NC:1:102 E87734


Mr. Tom Martin
A.N. Deringer, Inc.
6930 Metroplex Drive
Romulus, Michigan 48174

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a grooved pulley from Canada; Article 509

Dear Mr. Martin:

In your letter dated September 16, 1999, you requested a ruling on the tariff classification and status under the North American Free Trade Agreement (NAFTA) of a pulley from Canada.

The article in question is a grooved pulley. The pulley will be produced from a non-originating casting that will undergo machining and other finishing operations in Canada. Samples of the casting and the finished pulley were submitted.

The applicable tariff provision for the finished pulley will be 8483.50.9040, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for grooved pulleys. The general rate of duty will be 2.8 percent ad valorem.

In order for the grooved pulley to be eligible for the tariff treatment and quantitative limitations provided under the NAFTA, the pulley must have been transformed in Canada so that the non-originating material used in its production undergoes a change in tariff classification described in HTSUSA General Note 12(t)/84.246(A) or (B).

Examination of the submitted samples reveals that the casting is a net shape blank which approximates the outline of the finished pulley it will form. Although the casting may not be to final tolerance and will require significant additional machining before it can be used as a pulley, upon importation the casting is recognizable as the finished article it will become. Further, absent evidence to the contrary, the unfinished casting has no other practical use other than for completion into a finished pulley.

Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes. GRI 2(a) extends the scope of the HTSUS headings to include unfinished articles, provided the unfinished articles have the essential character of the finished articles.

We find that the subject casting is an unfinished article which has the essential character of the finished pulleys provided for in subheading 8483.50.90, HTSUS. Accordingly, the non-originating casting fails to meet the requirements of HTSUSA General Note 12(t)/84.246(A) or (B), because under the HTSUSA the non-originating casting is classifiable as an unfinished pulley, under the same subheading as the finished pulley.

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 212-637-7026.


Robert B. Swierupski

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