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NY M87184

November 1, 2006

CLA-2-84:RR:NC:1:104 M87184


TARIFF NO.: 8466.94.6585

Mr. Bryan Davis
AIDA-America Corp.
7660 Center Point 70 Blvd.
Dayton, OH 45424-6380

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

Dear Mr. Davis:

In an undated letter which we received on October 5, 2006 you requested a ruling on the status of weldments from Canada under the NAFTA.

The items in question are “cut to print” steel plates which are manufactured in China and further processed in Canada prior to their exportation to the United States.

The basic “cut to print” steel plates (i.e., cut to an exact shape by either flame cutting, laser cutting or plasma cutting but not yet subject to further processing such as welding) were the subject of NY ruling R04357 dated July 25, 2006. These items were classified in subheading 7208.90.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for flat-rolled products of iron or nonalloy steel, of a width of 600 mm or more, hot-rolled, not clad, plated or coated, other. After importation into Canada, these plates of Chinese origin are tacked together, welded, thermal stress relieved, sand blasted and prime painted. You also indicate that, in most cases, these weldments will also undergo preliminary machining such milling, drilling and tapping of surfaces that cannot be reached once the fabrication is completed. Final machining is done in Dayton, Ohio where the weldments will be assembled together with other components into complete metal stamping presses.

The country of origin determination is made pursuant to 19 C.F.R. 102.11, which states: The country of origin of a good is the country in which: The good is wholly obtained or produced.
The good is produced exclusively from domestic materials. or
Each foreign material incorporated in that good undergoes an applicable change in tariff classification set out in §102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

19 C.F.R. 102.20 specifies that classification under HTSUS provision 8466 allows for a change to subheading 8466.10 through 8466.94 from any other heading outside that group, except from heading 8501 when resulting from a simple assembly. This tariff shift has been met. The country of origin of the weldments is Canada based upon meeting the tariff shift specified in C.F.R. 102.20.

The applicable tariff provision for the weldments will be 8466.94.6585, HTSUS, which provides for Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for machine tools; tool holders for any type of tool for working in the hand: Other: For machines of heading 8462 to 8463: Other: Bed, base, table, column, cradle, frame, bolster, crown, slide, rod, tailstock and headstock castings, weldments or fabrications: Other Other. The general rate of duty will be 4.7 percent ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that

For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as "goods originating in the territory of a NAFTA party" only if--

(i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or

(ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that--

(A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or

(B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or

(iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or

(iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for "parts" and used in the production of such goods does not undergo a change in tariff classification because--

(A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or

(B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts,
provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note.

General Note 12(b)(ii)(A) indicates that the non-originating plates must undergo a change in tariff classification in order for the weldments into which they are transformed to be considered as originating goods. General Note 12(t)/182, HTSUS, describes the acceptable tariff classification change as “a change to heading 8466 from any other heading”.

Based on the facts provided, the non-originating material, i.e., the “cut-to print” plates, have satisfied the change in tariff classification required (i.e., subheading 7208.90.0000, HTSUS, to subheading 8466.94.6585, HTSUS) under this HTSUS General Note. Thus, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). The goods will therefore be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.

This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 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 Patricia O’Donnell at 646-733-3011.

Should you wish to request an administrative review of this ruling, submit a copy of this ruling and all relevant facts and arguments within 30 days of the date of this letter, to the Director, Commercial Rulings Division, Headquarters, U.S. Customs and Border Protection, 1300 Pennsylvania Ave. N.W., (Mint Annex), Washington, D.C. 20229.


Robert B. Swierupski

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