The tariff classification and status under the North American Free Trade Agreement (NAFTA), of an electric motor from Mexico; Article 509

N236883 January 16, 2013 CLA-2-85:OT:RR:NC:N1:112 CATEGORY: Classification TARIFF NO.: 8501.10.4060 Kevin Turner Johnson Electric North America 10 Progress Drive Shelton, CT 06484 RE: The tariff classification and status under the North American Free Trade Agreement (NAFTA), of an electric motor from Mexico; Article 509 Dear Mr. Turner: In your letter dated December 30, 2012, you requested a ruling on the status of an electric motor from Mexico under the NAFTA. The item concerned is a brushed direct current electric motor (model # 1999-1020656EP) with a maximum output of 5.83 watts. This particular electric motor will be used to operate the door lock of an automobile. All of the components/materials that make up this item are sourced from non-NAFTA countries. The materials and parts are imported into Mexico where they are manufactured into a finished electric motor. The internal rotor is manufactured in Mexico from non-NAFTA silicon steel strips, armature shafts and other components. The steel motor housing is made in Mexico from non-NAFTA steel and the resin end cap is made in Mexico from non-NAFTA PA 66 resin. The Mexican made rotor, housing and end cap is then assembled into a finished electric motor using a variety of non-NAFTA parts. Each of the raw materials and/or parts undergo a tariff shift as a result of the manufacturing process that takes place in Mexico. The applicable tariff provision for the electric motor (model # 1999-1020656EP) will be 8501.10.4060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electric motors…: Motors of an output not exceeding 37.5 W: Of under 18.65 W: Other: DC: Other.” The general rate of duty will be 4.4%. 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/. General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. General Note 12(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that For the purposes of this note, goods imported into the customs territory of the United States are eligible for the tariff treatment and quantitative limitations set forth in the tariff schedule as “goods originating in the territory of a NAFTA party” only if-- (i) they are goods wholly obtained or produced entirely in the territory of Canada, Mexico and/or the United States; or (ii) they have been transformed in the territory of Canada, Mexico and/or the United States so that-- (A) except as provided in subdivision (f) of this note, each of the non-originating materials used in the production of such goods undergoes a change in tariff classification described in subdivisions (r), (s) and (t) of this note or the rules set forth therein, or (B) the goods otherwise satisfy the applicable requirements of subdivisions (r), (s) and (t) where no change in tariff classification is required, and the goods satisfy all other requirements of this note; or (iii) they are goods produced entirely in the territory of Canada, Mexico and/or the United States exclusively from originating materials; or (iv) they are produced entirely in the territory of Canada, Mexico and/or the United States but one or more of the nonoriginating materials falling under provisions for “parts” and used in the production of such goods does not undergo a change in tariff classification because-- (A) the goods were imported into the territory of Canada, Mexico and/or the United States in unassembled or disassembled form but were classified as assembled goods pursuant to general rule of interpretation 2(a), or (B) the tariff headings for such goods provide for and specifically describe both the goods themselves and their parts and is not further divided into subheadings, or the subheadings for such goods provide for and specifically describe both the goods themselves and their parts, provided that such goods do not fall under chapters 61 through 63, inclusive, of the tariff schedule, and provided further that the regional value content of such goods, determined in accordance with subdivision (c) of this note, is not less than 60 percent where the transaction value method is used, or is not less than 50 percent where the net cost method is used, and such goods satisfy all other applicable provisions of this note. Based on the facts provided, the goods described above qualify for NAFTA preferential treatment, because they will meet the requirements of HTSUS General Note 12(b)(ii)(A). The goods will therefore be entitled to a Free rate of duty under the NAFTA 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 the National Import Specialist at (646) 733-3008. 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 and Border Protection, Regulations & Rulings, 799 9th Street N.W. - 7th floor, Washington, DC 20229-1177. Sincerely, Thomas J. Russo Director National Commodity Specialist Division