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 > 1997 NY Rulings > NY 893952 - NY 894061 > NY 894037

Previous Ruling Next Ruling
NY 894037




January 27, 1994

CLA-2-73:S:N:N118:894037

CATEGORY: CLASSIFICATION

TARIFF NO.: 7318.15.0000, 7318.15.8060

Mr. Jim Thomson
A.R. Thomson Ltd.
#3-7551 Vantage Way
Delta, B.C. V4G 1C9

RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of Rota Bolt load controlling fasteners from Canada.

Dear Mr. Thomson:

In your letter dated January 6, 1994 you requested a ruling on the tariff classification and the status of Rota Bolt load controlling fasteners from Canada under the NAFTA.

The fastener is called a Rota Bolt when a parent fastener is modified in Canada to incorporate an extension gauge pin, Rota and control cap. The assembly is set to indicate a specific extension of the fastener when the control cap cannot be turned with fingers. One of the Rota Bolts is a modified steel cap screw measuring over 6 mm in diameter. The other Rota Bolt is a modified steel stud measuring over 6 mm in diameter.

The modification consists of machining, assembly, setting and testing operations. A hole is drilled from one end into the parent fastener to accommodate the gauge pin. The bottom of the hole is tapped to provide for adjustment of the gauge pin and Rota clearance from the end of the fastener. The head or drilled end of the fastener is then machined smooth and perpendicular to the axial length of the fastener to permit small and accurate clearance between the Rota and fastener end. A hydraulic tensioner is used to verify the setting and to ensure indication of extension is within tolerances specified for tension. A control cap is stamped with A. R. Thomson Ltd. logo and the load setting in tones. The cap is crimped onto the Rota to complete the modification from parent fastener to Rota Bolt.

The applicable tariff provision for the modified steel cap screw (Rota Bolt) will be 7318.15.8060, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for steel screws having shanks or threads with a diameter of 6 mm or more. The general rate of duty will be 9.5 percent ad valorem. The applicable tariff provision for the modified steel stud (Rota Bolt) will be 7318.15.5000, HTSUSA, which provides for steel studs. The general rate of duty will be 4.7 percent ad valorem.

You described two sets of circumstances under which these items will be imported into the United States. In one case the modified fastener (Rota Bolt) will be produced in Canada using a cap screw or stud which was produced in a non-NAFTA country. The other parts will all be produced in Canada. In the other case the modified fastener (Rota Bolt) will be produced from components which are all produced by a U.S. or Canadian manufacturer.

In those cases where the Rota Bolt is produced using a cap screw or stud which was produced in a non-NAFTA country, the merchandise does not qualify for preferential treatment under the NAFTA because one or more of the non-originating materials used in the production of the goods will not undergo the change in tariff classification required by General Note 12(t)/73/15., HTSUSA.

In those cases where the Rota Bolts are produced entirely from components which are produced in the territory of Canada or the United States, they will meet the requirements of HTSUSA General Note 12(b)(i). Those modified steel studs (Rota Bolt) will therefore be entitled to a 1.8 percent rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements. Those modified steel cap screws (Rota Bolt) will therefore be entitled to a 3.8 percent 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 this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

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, Office of Regulations and Rulings, U.S. Customs Service, 1301 Constitution Ave. N.W., Franklin Court, Washington, D.C. 20229.

Sincerely,

Jean F. Maguire
Area Director

Previous Ruling Next Ruling

See also: