The tariff classification of Breakout Kits

N242949 June 21, 2013 CLA-2-73:OT:RR:NC:N1:113 CATEGORY: Classification TARIFF NO.: 7326.90.85 Ms. Barbara Haugen Telect Inc. 23321 East Knox Avenue Liberty Lake, WA 99019 RE: The tariff classification of Breakout Kits Dear Ms. Haugen: In your letter dated June 6, 2013, you requested a tariff classification ruling. A sample kit, specification drawings and a bill of materials was included with your request. The product under consideration is identified as a Breakout Kit, PN KIT-BKOT24, which is a kit of parts used in the telecommunication industry to protect fiber from being damaged. The KIT-BKOT24 is a protective housing used to transition a larger multifiber cable with loose individual fibers into smaller subgroups of fiber. As this transition is made, the individual fibers, which are very thin and fragile, are exposed from their protective jacket and susceptible to damage. The articles in this kit provide protection to the exposed fibers, as they leave the protective jacket of the larger multifiber cable and are separated into the smaller sub-groups. Each sub-group of fibers is routed into a smaller protective tube, or jacket, upon exiting the kit. The most essential items of the kit are part numbers 126579 (housing), 126580 (cover plate) and 126581 (entry plate), which provide the protection to the exposed fibers once the kit has been installed. All of these parts are made of steel. Other components of the kit include exit block mounts, bond clamps, plates, cord and cable fittings, strain reliefs, screws, nuts and a tube of adhesive sealant. All of the components of the Breakout Kit are packed at your plant in the United States in a transparent plastic bag with a sealing strip across the top. The bags of parts are ready to be shipped from the facility to your customers and distributors, who may then resell the kits to the end users. Tariff classification under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the principles set forth in the General Rules of Interpretation (GRI’s) taken in order. The Explanatory Notes to the Harmonized Tariff System provide guidance in the interpretation of the Harmonized Commodity Description and Coding System at the international level. Explanatory Note X to GRI 3(b) provides that the term "goods put up in sets for retail sale" means goods that: (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking. The Breakout Kit, PN KIT-BKOT24, in our opinion meets the criteria for sets as the terms are defined in the cited Explanatory Notes. For the purposes of the HTSUS, the subject kit constitutes a set. Having determined that the items constitute a set for tariff classification purposes, we must decide the essential character. According to the Explanatory Notes to GRI 3(b), essential character may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the article. Based on the function of the items in the Breakout Kit, it is the opinion of this office that part numbers 126579 (housing), 126580 (cover plate) and 126581 (entry plate) which provide the protection to the exposed fibers impart the essential character to the set. The applicable subheading for the Breakout Kit, PN KIT-BKOT24, will be 7326.90.85, HTSUS, which provides for other articles of iron or steel, other…other. You have also inquired about the country of origin of the Breakout Kit. However, your inquiry does not provide enough information for us to rule on the country of origin of the kit. You indicated where each of the components was obtained, but your request did not specify where each of the components of the kit was manufactured. If you wish a ruling on the country of origin of a complete Breakout Kit, imported into the United States, provide details on the country of manufacture of each item in the kit. Indicate whether, in the condition as imported into the United States, all of the components of the kit are packaged for sale at retail to the ultimate consumer. If so, you may wish to consider resubmission of your request. We are returning any related samples, exhibits, etc. If you decide to resubmit your request, please prepare a new request letter and include all of the material that we have returned to you and mail your request to U.S. Customs and Border Protection, Customs Information Exchange, 10th Floor, One Penn Plaza, New York, NY 10119, attn: Binding Rulings Section. However, it appears that your concern might be for determining the country of origin of the Breakout Kit assembled in the U.S. and then shipped from the U.S. to a variety of NAFTA and non-NAFTA countries. If your concern is for the country of origin of the exported U.S. product as determined by the importing country, then you may wish to obtain a ruling from the country into which it will be imported. While the Harmonized Tariff System seeks uniformity among the participating member nations, participating nations are, nonetheless, not bound by other nations' rulings and are free to rule on goods entering their boundaries. Per 19 CFR §181.92(b)(5) [Definitions and general NAFTA advance ruling practice], this office has no authority to issue rulings on goods exported from the U.S. to other NAFTA countries (Canada or Mexico). A list of addresses from which advance rulings for exports into Canada or Mexico can be requested is located at the U.S. Customs and Border Protection website at www.cbp.gov (click on Trade, Trade Programs, International Agreements, International Free Trade Agreements, North American Free Trade Agreement, Advance Rulings). If your concern is not with how the importing country determines the country of origin but whether the kit assembled in the U.S. may be marked to indicate that it was produced in the United States, note that if a good is determined to be an article of U.S. origin, it is not subject to the country of origin marking requirements of 19 U.S.C. §1304. However, whether an article may be marked with the phrase "Made in the USA" or similar words denoting U.S. origin is an issue under the authority of the Federal Trade Commission (FTC). We suggest that you contact the FTC Division of Enforcement, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580 on the propriety of any proposed markings indicating that an article is made in the U.S. 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 Ann Taub at (646) 733-3018. Sincerely, Thomas J. Russo Director National Commodity Specialist Division