United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 2008 NY Rulings > NY N023396 - NY N023493 > NY N023473

Previous Ruling Next Ruling
NY N023473

March 7, 2008



TARIFF NO.: 8504.40.9550

Mr. Andrew Kular
Chief Executive Officer
Ecosol Solar Technologies
1306 Wellington Street W., Suite # 501
Ottawa, Ontario, Canada K1Y 3B2

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) for a Powerstick™ from Canada

Dear Mr. Kular:

In your letter dated February 4, 2008 you requested a NAFTA Advance Ruling Request on the status of a Powerstick™ from Canada under the NAFTA.

The merchandise subject to this ruling is a Powerstick™. The Powerstick™ is a portable, microprocessor-controlled power source that provides an electrical charge for most mobile devices including cell phones, PDAs, MP3 players, Bluetooth headsets, and digital cameras. It can simultaneously provide power and charge the batteries of the mobile devices.

The Powerstick™ is produced in Canada from originating materials from Canada and the United States and non-originating materials from China. The originating materials from Canada are housings, packaging, and instructions. The originating materials from the United States are various integrated circuits (microcontrollers, battery monitors, battery charger, input over voltage protection, DC/DC converters, LDO voltage regulators, MOSFET, PMOS switches, and current limit switches), and ceramic capacitors. The non-originating materials from China are liquid crystal displays (LCDs), a USB connectors, tact switches, 2.5mm audio jacks, power inductors, Lithium polymer batteries, printed circuit boards (PCBs), and wire connectors.

The entire manufacturing process through final assembly is conducted in Canada. The process involves the population of a printed circuit board (PCB) in the provinces of Ontario and Quebec, Canada. The manufacturing process is as follows:

The bare PCB goes through a surface mounting technology (SMT) where the electronic components are mounted directly onto the surface of a PCB. The partially populated PCB is x-rayed to ensure that there are no flaws during the mounting of the components onto the PCB. The partially populated PCB is electronically tested. A liquid crystal display (LCD) and a Lithium polymer battery are added to the PCB whereupon a second test is conducted. The assembled PCB is shipped to Ecosol Solar Technologies Inc. in Ottawa, Ontario where the completed PCB is mechanically assembled into its plastic housing, yielding the Powerstick™. The Powerstick™ is then tested, and packaged with its instructions readying it for retail sale.

The applicable tariff provision for the Powerstick™ will be 8504.40.9550, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Rectifiers and rectifying apparatus: Other.” The general rate of duty will be 1.5 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/.

The Powerstick™, was produced from originating and non-originating goods. However, since the non-originating materials used in the production of the Powerstick™ did undergo a change in tariff classification in Canada, as described in subdivision (r), (s), and (t) of General Note 12 (b) (ii) (A), [specifically GN 12 (b) (ii) (A) (t) Chapter 85, Chapter rule 7, 6. (A)], the Powerstick™ will 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 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 Linda M. Hackett at 646-733-3015.


Robert B. Swierupski

Previous Ruling Next Ruling

See also: