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NY R02334

August 30, 2005

CLA-2-84:RR:NC:1:102 R02334


TARIFF NO.: 8413.60.0040

Mr. Christian Lechasseur
Les Produits Fraco LteĀ“e
91 Ch. Des Patriotes
St-Mathias sur Richelieu
Quebec J3L 6A1 Canada

RE: The tariff classification and country of origin marking of a hydraulic power unit from Canada

Dear Mr. Lechasseur:

In your letter dated July 28, 2005 you requested a tariff classification ruling. The item in question is described as the FRUH-8000 hydraulic power pack assembly, part number 11010014. Descriptive information was submitted.

The FRUH-8000 power pack is an assembly of Canada comprised of two main components, a Honda 5.5 HP motor and a hydraulic rotary pump. The power pack is used to supply fluid pressure to a hydraulically operated work platform. The motor, which drives the hydraulic pump, is manufactured in Japan, while the hydraulic rotary pump is manufactured in Italy. The motor and pump are assembled in Canada with other parts, such as hardware, brackets, an oil tank, a tachometer, etc., to form a complete power pack. Usually, the hydraulic unit is welded to the work platform, however, for model FRUH-8000 the power pack is imported and sold separately from the platform

The applicable subheading for the FRUH-8000 power pack will be 8413.60.0040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other hydraulic fluid power pumps. The rate of duty is free.

In your letter you also request a ruling on the country of origin marking requirements for the assembled power pack.

The marking statute, section 304, Tariff Act of 1930, as amended (19 U.S.C. 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 to 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 U.S.C. 1304.

The country of origin marking requirements for a "good of a NAFTA country" are also determined in accordance with Annex 311 of the North American Free Trade Agreement ("NAFTA"), as implemented by section 207 of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat 2057) (December 8, 1993) and the appropriate Customs Regulations. The Marking Rules used for determining whether a good is a good of a NAFTA country are contained in Part 102, Customs Regulations. The marking requirements of these goods are set forth in Part 134, Customs Regulations.

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. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin" within this part; however, for a good of a NAFTA country, the NAFTA Marking Rules will determine the country of origin.

Section 134.1(j) of the regulations, provides that the "NAFTA Marking Rules" are the rules promulgated for purposes of determining whether a good is a good of a NAFTA country. Section 134.1(g) of the regulations, defines a "good of a NAFTA country" as an article for which the country of origin is Canada, Mexico or the United States as determined under the NAFTA Marking Rules. Section 134.45(a)(2) of the regulations, provides that a "good of a NAFTA country" may be marked with the name of the country of origin in English, French or Spanish.

You state that the imported power pack is assembled in Canada prior to being imported into the U.S. Since Canada is defined under 19 CFR 134.1(g), as a NAFTA country, we must first apply the NAFTA Marking Rules in order to determine whether the imported power pack is a "good of a NAFTA country", and thus subject to the NAFTA marking requirements.

Part 102 of the regulations, sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of a NAFTA country for marking purposes. Section 102.11 of the regulations, sets forth the required hierarchy for determining country of origin for marking purposes.

Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the non-originating hydraulic pump does not undergo the applicable shift in tariff classification because both the non-originating pump and the assembled power pack are classified in HTSUS subheading 8413.60.0040. We also find that the non-originating pump is the single component within the power pack assembly that imparts the essential character to the power pack. Accordingly, the power pack assumes the origin of the non-originating hydraulic pump and is a good of Italy for marking purposes.

This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Kenneth T. Brock at 646-733-3009


Robert B. Swierupski

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