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 > 2007 NY Rulings > NY N006042 - NY N006097 > NY N006043

Previous Ruling Next Ruling
NY N006043




February 28, 2007

CLA-2-84:RR:E:NC:N1:102

CATEGORY: CLASSIFICATION

TARIFF NO.: 8412.90.9005

Ms. Linda J. Caro
Parker Hannifin Corporation
6035 Parkland Blvd.
Cleveland, OH 44124-4141

RE: The tariff classification of hydraulic cylinder castings from China

Dear Ms. Caro:

In your letter dated January 29, 2007 you requested a tariff classification and marking ruling on behalf Parker Hannifin.

The articles in question are described as cylinder castings for linear hydraulic motors. The Mobile Cylinder Division (MCY) of Parker Hannifin manufactures hydraulic mobile cylinders in Benton, Arkansas. Parker Hannifin intends to begin importing the machined steel castings from China. All of the castings made in China will be used by MCY in the U.S. as a component in the manufacture of linear hydraulic cylinders. The finished cylinders are used in mobile equipment in the refuse, mining, truck, and material handling markets. Descriptive information was submitted.

You indicate that the cylinders are custom made by MCY to the specifications of their customers. To meet individual customer requirements, the imported castings will vary in size and shape. More than 30 different part numbers will be assigned to the imported parts.

A foundry in China will manufacture the raw castings out of steel per ASTM standards. In most cases, before being exported to the U.S., the raw castings will be sent to a machine shop in China for significant machining operations that will prepare them to become a part of a completed hydraulic cylinder. Once the machined castings arrive at the Benton, Arkansas, plant in the U.S., additional minor machining will be performed before the castings are welded onto finished cylinders as the end heads.

The applicable subheading for the cylinder castings will be 8412.90.9005, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts of linear acting hydraulic power engines and motors. The rate of duty is free.

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/.

With regard to the marking of the imported cylinder castings 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 C.F.R. Part 134 implements the country of origin marking requirements and exceptions of 19 U.S.C. §1304.

Pursuant to section 134.35, Customs Regulations (19 C.F.R. §134.35), an imported article that is substantially transformed in the U.S. is excepted from individual country of origin marking and only the outermost containers of the imported articles must be marked with the country of origin. An article is substantially transformed if it is “so processed in the U.S. that it loses its identity in a tariff sense and becomes an integral part of a new article having a new name, character and use.” U.S. v. Gibson-Thomsen Company, Inc., 27 CCPA 267 (1940).

In light of the machining and assembly operations performed by Parker Hannifin, we find that the imported castings, when incorporated with other components to produce finished hydraulic cylinders, are substantially transformed into articles with a new name, character or use. Further, you indicate that the castings will only be used in the production of hydraulic cylinders and will not be sold as replacement parts or as part of a kit.

In accordance with 19 C.F.R. §134.35, Parker Hannifin is the ultimate purchaser of the imported castings. The castings are excepted from individual marking provided that the port director at the port of entry is satisfied that the castings are imported in properly marked containers and that the ultimate purchaser, Parker Hannifin, will receive the castings in these containers.

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.

Sincerely,

Robert B. Swierupski
Director,

Previous Ruling Next Ruling

See also: