The tariff classification and NAFTA Preference of switch parts.

N074904 September 15, 2009 CLA-2-85:OT:RR:E:NC:1:110 CATEGORY: Classification TARIFF NO.: 8538.90.6000 Mr. Lawrence M. Friedman Barnes, Richardson & Colburn 303 East Wacker Drive Suite 1020 Chicago, IL 60601-5205 RE: The tariff classification and NAFTA Preference of switch parts. Dear Mr. Friedman: In your letter dated September 4, 2009, you requested a tariff classification ruling on behalf of your client Cooper Power Systems. The merchandise under consideration is a rotary switch handle packaged in kit form with installation hardware. Photographs of the kit parts and packaging were submitted with your ruling request. The kit includes a molded plastic rotary switch handle, Index Plate, screw, nut, washers, spring, gasket, decal, label, installation manual and packaging material. The molded switch handle, gasket, Index Plate and decal are of U.S. origin and the label is from Mexico. All other components are from non-originating NAFTA countries. From the information you provided, the switch handle is for use with an internally mounted Dual Voltage or Tri-Voltage Transformer Switch identified as an N-Switch. These N-Switches are rotary switches with multiple termination points used to connect primary windings of a distribution transformer either in series for a higher winding ratio or parallel for a lower winding ratio. The switch handle provides an external, safe and time-saving means of rotating the switch and changing the connections of the internal windings of the transformer, thereby changing the voltage output. The switch handle is provided in kit form, separate from the rotary switch, to permit the end customer to specify the desired handle for each installation. The switch handle is available in several configurations including a cap wrench, lever or hotstick versions. The applicable subheading for the switch handle kit, part number 2237947A300, will be 8538.90.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts suitable for use solely or principally with the apparatus of heading 8535, 8536, or 8537: Other: Other: Other: Molded parts.” The general rate of duty will be 3.5 percent ad valorem. In addition to classification, you requested eligibility of the switch handle kit under the North American Free Trade Agreement (NAFTA). As stated above, the switch handles are manufactured in the U.S. along with the gasket, Index Plate and decals. These items are shipped to Mexico for packaging with mounting hardware from non-originating NAFTA countries and a label from Mexico. The photograph of the packaging material clearly indicates Cooper Power Systems with part number 2237947A300 and the wording “Pkgd in Mexico of parts Made in U.S., China, Taiwan.” When combined together forming the switch handle kit, each of the non-originating NAFTA components undergo the required tariff shift. Accordingly, in the instant case, the fact that the non-originating components are merely packaged with the NAFTA originating items in Mexico to create the switch handle kit will not preclude the imported kit from being considered a “good originating in the territory of a NAFTA party.” 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/. This ruling is being issued under the provisions of Part 181 of the Customs Regulations (19 C.F.R. 181). 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 Thomas Campanelli at (646) 733-3016. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division