The tariff classification of bushings used with electrical transformers from China.

N026524 May 15, 2008 CLA-2-85:OT:RR:NC:1:110 CATEGORY: Classification TARIFF NO.: 8535.90.8040; 9802.00.8068 Ms. Sandra Wieckowski Expeditors Tradewin, LLC 111010Metro Airport Center Dr. Bldg. M2, Suite 110 Romulus, MI 48174 RE: The tariff classification of bushings used with electrical transformers from China. Dear Ms. Wieckowski: In your letter dated March 28, 2008, you requested a tariff classification ruling on behalf of your client, H-J Enterprises, Inc. The merchandise under consideration are high voltage bushing assemblies, Part Numbers AS-1132-21-00 (18 KVA rating), AS-1132-29-00 (18 KVA rating), AS-1305-02-00 (8.7 KVA rating), AS-1143-23-00 (15 KVA rating) and AS-1143-24-00 (15 KVA rating). The five bushing assemblies consist of a porcelain insulator, cap assembly, handwheel assembly, electrical conductor and other hardware (i.e., nuts, washers, eyebolts, gaskets, etc.). The high voltage bushings are apparatus used primarily in applications with transformers and other high voltage power systems. The porcelain insulates the center conductor from the metal housing of electrical equipment such as transformers as it passes through, providing a connection between power lines and the transformer’s internal winding. In your request, you stated that H-J Enterprises, Inc. exports nine components manufactured in the United States (U.S.) to China, which will be incorporated into the bushings during the assembly process. The nine components are identified as Machine Eyebolts, EB7019-001; High Voltage Caps, TB2093-002; Steel Spin Grip Nuts, NT0018-001; Sidewall Connectors, TB2160-001; Sidewall Shoes, TB2161-001; Plugs, PL0005-001; Gaskets GA0020-001, GA0058-001 and GA0017-001. The assembly process in China is detailed in your request for consideration as to whether these nine components may be eligible for duty free treatment upon importation of the completed bushing assemblies into the U.S. under subheading 9802.00.8000, Harmonized Tariff Schedule of the United States (HTSUS). Subheading 9802.00.80, HTSUS, provides for a partial duty exemption for articles assembled abroad in whole or in part of fabricated components, the product of the U.S., 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 abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting. All three requirements of subheading 9802.00.80, HTSUS, must be satisfied before a component is eligible to receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full cost or value of the imported assembled article, less the cost or value of the U.S. components assembled therein, upon compliance with the documentary requirements of section 10.24, Customs Regulations (19 CFR 10.24). The assembly you described meets the three criteria listed above. From the information you provided, the nine U.S. components were exported in condition ready for assembly without further fabrication, they have not lost their physical identity and were not advanced in value or improved in condition abroad except by being assembled into the complete bushing assemblies. Therefore, the five bushing assemblies are eligible for a partial duty exemption under subheading 9802.00.8068, HTSUS, for the cost or value of the nine U.S. components identified above upon compliance with 19 CFR 10.24. The applicable subheading for the five high voltage bushing assemblies, Part Numbers AS-1132-21-00 (18 KV rating), AS-1132-29-00 (18 KV rating), AS-1305-02-00 (8.7 KV rating), AS-1143-23-00 (15 KV rating) and AS-1143-24-00 (15 KV rating) will be 8535.90.8040, HTSUS, which provides for “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits…for a voltage exceeding 1,000 V: Other: Other: Other connectors.” The rate of duty will be 2.7 percent ad valorem. 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 Thomas Campanelli at 646-733-3016. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division