The tariff country of origin of a tracked mobile drilling unit from Canada.

N126057 October 29, 2010 CLA-2-84:OT:RR:NC:N1:106 CATEGORY: Classification Ms. Aimie Kundert Logan International, Inc. O/A Destiny Resource Services Box 49, Site 1, RR#3 33 Industrial Park Grande Prairie, Alberta T8V-5N3 Canada RE: The tariff country of origin of a tracked mobile drilling unit from Canada. Dear Ms. Kundert: In your letter dated October 4, 2010, you requested a country of origin ruling. Photos and literature regarding the machine and its assembly were included with your request. The machine being imported into the US from Canada is a tracked mobile drilling unit. The machine is intended for use in oil drilling exploration. The machine’s base is that of a Yanmar C50R crawler which is imported into Canada from Japan without the standard dump box which would be normally installed on the rear end of the machine. In Canada, the bumper, fuel tank, hydraulic pump are removed and the frame is cut and extended twelve inches to accommodate a nine foot deck. A new bumper with a winching system is installed on the longer frame. New hydraulic systems which are not designed for operation of a dumper but for control of a drilling system are installed along with other equipment that works with the new hydraulics. A modified mast and drill stem racks are installed on the machine’s deck. Pressurized air systems are installed in order to power the down hole hammers while drilling through the earth’s crust. A cost breakdown which was included shows that two-thirds of the value of the machine, when completed as a drilling unit is added in Canada. This cost consists of parts and components originating in the USA, Canada and several European countries. At the time that the machine is entered into the commerce of Canada, it is classifiable in Harmonized Tariff System (HTS) heading 87.04 as a motor vehicle for the transport of goods. Upon importation into the United States, the machine has undergone substantial transformation in Canada and would be classifiable in HTS heading 84.30. The country of origin for the tracked mobile drilling unit as imported into the US would be Canada. 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 Mark Palasek at (646) 733-3013. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division