The tariff classification and status under the North American Free Trade Agreement (NAFTA) for T5 Solar Roof Tile Modules from Mexico

N202536 February 14, 2012 CLA-2-85:OT:RR:NC:N1:109 CATEGORY: Classification TARIFF NO.: 8541.40.6020 Mr. Miguel Angel Gomez Trade Compliance and Logistics Officer SunPower Corporation Mexico Blvd. Lazaro Cardenas No. 3101 Mexicali B.C., Mexico C.P. 21188 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA) for T5 Solar Roof Tile Modules from Mexico Dear Mr. Gomez: In your letter dated January 2, 2012 you requested a determination as to the classification and eligibility of NAFTA duty free preferential treatment of five T5 Solar Roof Tile Modules. The T5 Solar Roof Tile Modules were referred to within your submission as Module Assemblies and identified as Part Nos. 500336 (ASSY, MODULE, T5, 320 EL-WHT-D CAR), 500337 (ASSY, MODULE, T5, 308 EL-WHT-D), 500399 (ASSY, MODULE, T5, 327 NEL-WHT-D CAR), 500559 (ASSY, MODULE, T5, 305 EL-WHT-DC, C60), and 500629 (ASSY, MODULE, T5, 305 EL-WHT-D CAR, C60). The Solar Roof Tile Modules will be produced in Mexico from originating and non-originating materials. Based on the Bill of Materials (BOM) listing that you furnished, the originating materials are from the United States and Mexico and the non-originating material are from Belgium, China and the Philippines. All of the production for the T5 Solar Roof Tile Modules is performed in Mexico. The process begins with the receipt of raw materials. They are a north frame, south frame, east frame, west frame, wind deflector, clip and photovoltaic laminate. The raw material goes through an inspection process and once accepted is transferred to production. The production process is as follows: a) Laminate (photovoltaic) preparation: The laminates are removed from the container box and placed in the inspection and preparation area. They are examined to ensure that no visual defects of obstructions are present. Afterwards, the surface is cleaned. The serial number of the photovoltaic laminate is scanned and an identification label is placed on it. The photovoltaic laminate is loaded on Station 1 of the T5 framing line. b) Loading of frames and assembly: Each frame is visually inspected before placing in the machine. North, south, east and west frames are placed on Station 2 of the T5 framing line. Automated application of silicone adhesive (RTV) Once the frames are in their position, the cycle starts by using the “cycle start” soft button on the control screen and then a robot starts the processing of dispensing RTV. A visual inspection is made to ensure RTV is applied uniformly and without air bubbles. Automated assembly of laminate & frames: Once the robot returns to its initial position after the dispensing cycle, the photovoltaic laminate is moved into position automatically on Station 2 of the T5 framing line and pressure is applied to attach it firmly to the frame. Once assembled, it is passed onto Station 3 of the T5 framing line. c) RTV Inspection: A visual inspection of the assembled module is made to ensure no excess RTV is visible on the module. Any excess is cleaned with a dry cloth or paper towel. d) The spring clip is placed on the central part of the north frame; the wind deflector is placed afterwards. At this point, the module is fully assembled. It is then offloaded from the assembly line at Station 3 of the T5 framing line and placed on a pallet at the end of Station 3. e) A stack of 22 modules are placed onto a pallet. f) The pallet is then moved to a curing area where it will stay for 24 hours, allowing the RTV to dry properly to avoid causing any defects to the modules during shipping. g) The modules are secured to each pallet by two wooden posts. Each post is secured with three screws, a nut and three washers. Once completely secured, it is wrapped with plastic and moved to the shipping area. h) The T5 Solar Roof Tile Modules are then ready for shipment to the buyer. The production process that takes place in Mexico creates solar photovoltaic modules. You refer to them as T5 Solar Roof Tile Modules. They are identified as Part Nos. 500336 (ASSY, MODULE, T5, 320 EL-WHT-D CAR), 500337 (ASSY, MODULE, T5, 308 EL-WHT-D), 500399 (ASSY, MODULE, T5, 327 NEL-WHT-D CAR), 500559 (ASSY, MODULE, T5, 305 EL-WHT-DC, C60), and 500629 (ASSY, MODULE, T5, 305 EL-WHT-D CAR, C60). The applicable tariff provision for the T5 Solar Roof Tile Modules (Part Nos. 500336 (ASSY, MODULE, T5, 320 EL-WHT-D CAR), 500337 (ASSY, MODULE, T5, 308 EL-WHT-D), 500399 (ASSY, MODULE, T5, 327 NEL-WHT-D CAR), 500559 (ASSY, MODULE, T5, 305 EL-WHT-DC, C60), and 500629 (ASSY, MODULE, T5, 305 EL-WHT-D CAR, C60)) will be 8541.40.6020, Harmonized Tariff Schedule of the United States Annotated (HTSUSA), which provides for “Photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light–emitting diodes: Other diodes: Other: Solar cells: Assembled into modules or made up into panels.” The general rate of duty will be 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/. The T5 Solar Roof Tile Modules were produced from originating and non-originating goods. However, the non-originating materials used in the production of the T5 Solar Roof Tile Modules are not required to undergo a change in tariff classification in Mexico, as described in subdivision (r), (s), and (t) of General Note 12 (b) (ii) (B), [specifically GN 12 (b) (ii) (B) (t) Chapter 85, Chapter rule 5, 142.], which states: “No required change in tariff classification to any of subheadings 8541.10 through 8542.90.” As such, the T5 Solar Roof Tile Modules will be entitled to NAFTA duty free preferential treatment upon compliance with all applicable laws, regulations, and agreements. 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 Linda M. Hackett at (646) 733-3015. Sincerely, Thomas J. Russo Director National Commodity Specialist Division