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NY L87298




September 16, 2005

CLA-2-83:RR:NC:N1:121 L87298

CATEGORY: CLASSIFICATION

TARIFF NO.: 8302.30.3060

Ms. Susan L. Tolot
Willson International, Inc.
One Heritage Place
Southgate, Michigan 48195

RE: Country of origin marking and tariff classification for an aluminum bracket under the North American Free Trade Agreement (NAFTA)

Dear Ms. Tolot:

In your letter dated August 30, 2005, on behalf of Burlington Technologies Inc., you requested a ruling on the country of origin marking and tariff classification for an aluminum bracket under the NAFTA.

The aluminum bracket is used in a motor vehicle engine. The bracket functions to mount a tensioner unit, which controls the tension of the engine belts, to the engine. The bracket consists of the following components:

One aluminum casting bracket that was cast in China Two steel threaded bolts (part number A177) made in the U.S. One plastic retainer (Part number A178) made in the U.S. One steel ball stud (Part number A196) made in the U.S.

The items listed above will be imported into Canada. In the Canadian facility the front face of the casting is machined and eight holes are tapped. The two bolts and the retainer are then assembled to the casting. The final operation is to assemble the ball stud to the casting. The inquirer has submitted samples of the various components before processing and a sample of the bracket after processing and in condition as imported into the U.S.

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 102.1 of the Customs Regulations sets forth the "NAFTA Marking Rules" for purposes of determining whether a good is a good of NAFTA country for marking purposes. Section 102.11 sets forth the required hierarchy for determining country of origin for marking purposes. Section 102.11(a) states that the country of origin of a good is the country in which:

(1) 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 section 102.20 and satisfies any other applicable requirements of that section, and all other applicable requirements of these rules are satisfied.

Sections 102.11(a)(1) and 102.11(a)(2) do not apply. Both the Chinese casting bracket (before machining and assembly) and the finished bracket are classified at 8302.30.3060, HTS. According to Section 102.20 for 8302.10-8302.60, a change must occur to subheading 8302.10 through 8302.60 from any other subheading, including another subheading within that group. Since the Chinese casting bracket does not undergo the appropriate tariff shift, section 102.11(a)(3) does not apply.

Section 102.11(b) states that except for a good that is specifically described in the Harmonized System as a set, or is classified as a set pursuant to General Rule of Interpretation 3, where the country of origin cannot be determined under paragraph (a) of this section:

The country of origin of the good is the country or countries of origin of the single material that imparts the essential character to the good

When determining the essential character of a good under section 102.11, section 102.18(b) provides that only domestic and foreign materials that are classified in a tariff provision from which a change is not allowed shall be taken into consideration, and that in deciding among these materials, consideration is given to various factors, including the nature of the material or component, bulk, quantity, weight, value, and the role of a constituent material in relation to the use of the goods.

Based upon the above factors, we find that the casting bracket is the single material that imparts the essential character to the bracket. Accordingly, the country of origin of the bracket, pursuant to section 102.11(b)(1) of the Customs Regulations, is China.

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.

Since the casting bracket was cast in China, General Note 12(b)(i) does not apply. GN 102(t) Chapter 83, part 3 states that a change to headings 8302 through 8304 must be take place from any other heading, including another heading within that group. Since the bracket casting does not undergo the required tariff shift, GN 12(b)(ii) does not apply. GN 12(b)(iii) does not apply because the casting bracket is not an originating material. GN 12(b)(iv) does not apply because the casting bracket does not fall under a provision for “parts.” Therefore, the bracket does not qualify for NAFTA preferential treatment.

The applicable subheading for the aluminum bracket will be 8302.30.3060, Harmonized Tariff Schedule of the United States (HTS), which provides for base metal mountings, fittings and similar articlesother mountings, fittings and similar articles suitable for motor vehicles; and parts thereof, of iron or steel, of aluminum or of zinc, other. The rate of duty is 2 percent ad valorem.

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 Barbara Kaiser at 646-733-3024.

Sincerely,

Robert B. Swierupski
Director,

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