Fully formed, stainless steel clamp bodies are imported into Canada from Spain. The landed cost for these clamp bodies is $2 each. The Canadian importer adds a bolt and several washers to make the finished product, a constant tension clamp. The bolt, valued at $2, is manufactured in the U.S. The washers, valued at $2, are manufactured in Canada. This clamp is designed to provide constant tension, needed to counteract expansion and contraction of hose or pipe connections in a diesel engine. In condition as imported, these clamp bodies do not qualify as a part or accessory of a motor vehicle. What is the classification and duty rate for this product?
A. 7326.90.8588 SPI CA, duty free under NAFTA
B. 7326.90.8530 SPI CA, duty free under NAFTA
C. 7326.90.8588 dutiable at 2.9%
D. 7326.90.8530 dutiable at 2.9%
E. 8708.99.8180 SPI CA, duty free under NAFTA
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The Answer is: C
Citation: HTSUS GRI 2(a) and GN 12
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