The tariff classification and country of origin of bicycle wheels from Cambodia

N120423 September 20, 2010 CLA-2-87:OT:RR:NC:N1:101 CATEGORY: Classification TARIFF NO.: 8714.99.8000 Joseph P. Cox Stein Shostak Shostak Pollack & O’Hara, LLP 865 South Figueroa Street, Suite 1388 Los Angeles, CA 90017-5489 RE: The tariff classification and country of origin of bicycle wheels from Cambodia Dear Mr. Cox: In your letter dated August 18, 2010, you requested a tariff classification and country of origin ruling on behalf of your client, Felt Racing, LLC. The item under consideration has been identified as a Nine Trail USA Model Wheel with tire assembled in Cambodia from components manufactured in Thailand, China and Taiwan. You state in your request that the tire (with inner tube) is made in Thailand with a cost of $10.00; that the wheel rims are made in China with a cost of $9.14 (two per wheel); that the front wheel hub is made in China with a cost of $2.96; that the rear wheel hub is made in China with a cost of $4.82 and that the wheel spokes are made in Taiwan with a cost of $4.17. You further state that the parts listed above are assembled together and tested for quality and safety, among other things, in Cambodia at a cost of $3.30. The applicable subheading for the Nine Trail USA Model Wheel will be 8714.99.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts … of [bicycles]: Other: Other: Other.” The rate of duty will be 10%. You also ask for a country of origin determination in your request: Cambodia has been designated as a “Beneficiary Developing Country [sic] for Purposes of the Generalized System of Preferences” by General Note 4. of the HTSUS. The country of origin criteria concerning Beneficiary Developing Countries is defined in Title 19 of the Code of Federal Regulations, Section 10.176 (19 C.F.R. 10.176) as “Merchandise produced in a beneficiary developing country.” “Produced in the beneficiary developing country is defined in 19 C.F.R 10.177(a)(2) as “Substantially transformed in the beneficiary developing country into a new and different article of commerce.” The tire included in the assembly of the tire, spokes, hubs and rims in Cambodia is transformed from a bicycle tire into a complete bicycle wheel with tire; this constitutes a “substantial transformation” into a “different article of commerce.” The country of origin of the Nine Trail USA Model Wheel is, therefore, Cambodia. Articles classifiable under subheading 8714.99.8000, HTSUS, which are products of Cambodia may be entitled to duty-free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. The GSP is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check our Web site at www.cbp.gov and search for the term “GSP”. 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/. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in 19 CFR 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated therein, either directly, by reference, or by implication, is accurate and complete in every material respect. This ruling is being issued under the assumption that the subject goods, in their condition as imported into the United States, conform to the facts and the description as set forth both in the ruling request and in this ruling. In the event that the facts or merchandise are modified in any way, you should bring this to the attention of Customs and you should resubmit for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by Customs. 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 Richard Laman at (646) 733-3017. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division