Specific Electric imports control instruments for use in heating systems from Canada. The HTSUS classification is 9032.89.6025. The materials used are: -thermostats -9032.1 -wiring harnesses -8544.51 -printed circuit board -8534 -diodes -8541.1 -transistors -8541.21 -integrated circuit -8542.13 The transaction value of the control instruments is $47.50. Do the control instruments qualify for NAFTA?
A) Yes, under criteria A; all components are “wholly obtained or produced” in a NAFTA country.
B) Yes, under criteria B; each of the non-originating components made the necessary tariff shift as required by GN12(t) of the HTSUS.
C) Yes, under criteria B; some of the non-originating components did not make the necessary tariff shift as required under GN12(t) of the HTSUS, but the good satisfies the De Minimis Rule.
D) Yes, under criteria B; each of the non-originating components made the necessary tariff shift AND the good satisfies the applicable regional value- content requirement as specified by GN12(t) of the HTSUS where the applicable rule specifies both a change in tariff classification and regional value requirement.
E) No. The control instruments do not qualify for NAFTA.
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The Answer is: B.
Citation: (19CFR181 App Part II Sec 4 (2) & GN 12(t)90.78)
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