The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a wheel motor assembly from Canada; Article 509

NY G88396 March 21, 2001 CLA-2-85:RR:NC:N1:113 G88396 CATEGORY: Classification TARIFF NO.: 8501.53.8060 Mr. L. Lougheed Euclid-Hitachi Heavy Equipment, Ltd. 200 Woodlawn Road West Guelph, Ontario, Canada, N1H1B6 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of a wheel motor assembly from Canada; Article 509 Dear Mr. Lougheed: In your letter dated March 9, 2001, you requested a ruling on tariff classification and status under the North American Free Trade Agreement (NAFTA), of a wheel motor assembly from Canada. The merchandise is a wheel motor assembly, used in an off-highway dumper. The dumper has a diesel-electric drive system. An alternator attached to the engine produces electricity that is transmitted to the wheel motor assemblies on the rear axle assembly. The wheel motor assembly provides propulsion and braking for the vehicle. There is no transmission or mechanical drive system on the dumper. The two wheel motor assemblies are bolted on the left-hand and right-hand side of the hollow center section of the rear axle. Your letter states that the wheel motor assemblies have an output exceeding 150 kW. Each wheel motor assembly weighs 33,000 lbs. The applicable subheading for this product, depending on the actual output of the motor, will be 8501.53.8040, Harmonized Tariff Schedule of the United States (HTS), which provides for Electric motors and generators (excluding generating sets): Of an output exceeding 75 kW: Not exceeding 373 kW. The applicable subheading for this product, if exceeding 373 kW, will be 8501.53.8060, Harmonized Tariff Schedule of the United States (HTS), which provides for Electric motors and generators (excluding generating sets): Of an output exceeding 75 kW: Other. The general rate of duty in either case will be 2.8 percent ad valorem. The list of materials shows that the item providing the essential character of this assembly, the motor itself, is imported from Germany into Canada and classifiable at that time in heading 8501, HTS. The country of origin for the completed item will remain Germany. The merchandise does not qualify for preferential treatment under the NAFTA because the good will not be wholly obtained or produced entirely in the territory of a NAFTA country, it will not be made exclusively from originating materials, and 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)/85, HTSUSA. The good will not meet any of the exceptions to the tariff classification change rules provided in General Note 12(b)(iv), HTSUSA. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R.181). 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, Commercial Rulings Division, Headquarters, U.S. Customs Service, 1300 Pennsylvania Ave. N.W., Washington, D.C. 20229. 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 James Smyth at 212-637-7008. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division