The tariff classification of a magnetic speed sensor from the Netherlands.

N248702 December 31, 2013 CLA-2-85:OT:RR:NC:N1:112 CATEGORY: Classification TARIFF NO.: 8543.70.4000, 9802.00.80 James F. Trubits Director of Business Development Mohawk Global Logistics 4700 Genesee Street Buffalo, NY 14225 RE: The tariff classification of a magnetic speed sensor from the Netherlands. Dear Mr. Trubits: In your letter dated December 13, 2013, you requested a tariff classification ruling on behalf of your client, Norwich Aero Products. The merchandise in question is a magnetic speed sensor assembly. This assembly consists of a magnetic speed sensor connected to a wiring harness. The magnetic speed sensor consists of a wire wound coil with a magnet. This sensor detects movement of ferrous objects near the sensor. It is typically used for speed sensing in combination with a toothed ferrous wheel. The magnetic speed sensor which is made in the U.S., and the wiring harness which is made in China, are joined together in the Netherlands by soldering a connector to the lead wires of the harness. The sensor integration is then finished by bonding and braiding the sensor to the harness. The integrated harness assembly is then shipped to the U.S. for testing and repackaging before shipping to the final customer. Typical applications for this device include aircraft engines, industrial engines, marine engines, and gear boxes. The applicable subheading for the magnetic speed sensor assembly will be 8543.70.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical machines and apparatus…: Other machines and apparatus: Electric synchros and transducers;...” The rate of duty will be 2.6%. A partial duty exemption is applicable for certain components of U.S. origin assembled in another country. Subheading 9802.00.80, HTSUS, provides for articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape, or otherwise, and (c) have not been advanced in value or improved in condition except by being assembled or except by operations incidental to the assembly process, such as cleaning, lubricating and painting. All three requirements (a, b, and c, above) of subheading 9802.00.80, HTSUS, must be satisfied before a component may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full value of the imported article, less the cost or value of such U.S. components assembled therein, upon compliance with the documentary requirements of Section 10.24, Customs Regulations (19 C.F.R. 10.24). Section 10.14(a), Customs Regulations (19 C.F.R. 10.14(a)), states that the U.S. components must be in a condition ready for assembly without further fabrication at the time of their exportation from the United States to qualify for the exemption. Components will not lose their entitlement to the exemption by being subjected to operations incidental to the assembly, either before, during, or after their assembly with other components. Section 10.16(a) Customs Regulations (19 C.F.R. 10.16(a)) provides that the assembly operation performed abroad may consist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fitting, gluing, laminating, sewing, or the use of fastener. Based on the information supplied the magnetic speed sensor meets the requirements of subheading 9802.00.80, HTSUS. This component is in a condition ready for assembly prior to being exported from the United States and does not lose its physical identity after being assembled. In addition, it is not advanced in value except by operations incidental to the assembly process. As such, a partial duty exemption will apply for the magnetic speed sensor, upon compliance with the documentary requirements of 19 C.F.R. 10.24. 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 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 Steven Pollichino at (646) 733-3008. Sincerely, Gwenn Klein Kirschner Acting Director National Commodity Specialist Division