The tariff classification of running-boards from Canada

NY 893005 December 15, 1993 CLA-2-87:S:N:N1:101 893005 CATEGORY: Classification TARIFF NO.: 8708.29.0060 Ms. Tracey Ellman PBB Group 434 Delaware Ave. Buffalo, NY 14202 RE: The tariff classification of running-boards from Canada Dear Ms. Ellman: In your letter dated December 6, 1993, on behalf of Algonquin Industries International, Inc., you requested a tariff classification ruling. You have submitted a photograph of the imported article which is a running-board for motor vehicles. Running-boards are affixed to the exterior of the vehicle and are used as a step-up platform, or as a place where individuals may stand when the vehicle is (or is not) in motion. You further requested information regarding the Automotive Products Trade Act (APTA). You state that in one case the running-boards are delivered directly to an assembly plant of a bonafide motor vehicle manufacturer. In the other case, however, the running-boards are delivered to private automotive dealerships for installation on new vehicles under a "ship-direct" program. The applicable subheading for the running-boards for motor vehicles will be 8708.29.0060, Harmonized Tariff Schedule of the United States (HTS), which provides for parts and accessories of bodies for the motor vehicles of headings 8701 to 8705; other. The rate of duty will be 3.1 percent ad valorem. Goods classifiable under subheading 8708.29.0060, HTS, which originated in the territory of Canada, and are imported on or prior to December 31, 1993, will be entitled to a 1.5 percent rate of duty under the United States-Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations. Effective January 1, 1994, with the implementation of the North American Free Trade Agreement (NAFTA), preferential tariff treatment for goods under the FTA will be discontinued. The Automotive Products Trade Act (APTA) of 1965 allows certain motor vehicle parts to be entered free of duty. In order for an article to be imported under the act, it must be a Canadian product and fulfil the requirements of General Note 3 (c) (iii), HTS. The product must be (1) a Canadian article which means an article which originates in Canada, as defined in subdivision (c)(vii) of this note (United States-Canada Free Trade Agreement Implementation Act of 1988), and (2) must be original motor vehicle equipment which means such a Canadian article which has been obtained from a supplier in Canada under or pursuant to the written order, contract or letter of intent of a bonafide motor vehicle manufacturer in the United States, and which is a fabricated component originating in Canada... and intended for use as original equipment in the manufacture in the United States of a motor vehicle.... Effective January 1, 1994, with the implementation of NAFTA, preferential tariff treatment for goods under the APTA will be discontinued. This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177). 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. Sincerely, Jean F. Maguire Area Director New York Seaport