CLA-2-84:S:N:N1:102 872132

Mr. Charles H. Martin
Hampton Power Products, Inc.
3030 N.W. 29th Avenue
Portland, Oregon 97210

RE: The tariff classification of semi-finished gearboxes from Japan

Dear Martin:

In your letter dated January 31, 1992 you requested a tariff classification ruling. The items in question are a series of partially completed gearboxes, known as model MFGK. These units are imported into the United States and ultimately mated with specially made U.S. electric motors. The motor also has the first pinion gear machined onto the end of its drive shaft. The ultimate assembly is known as a gearmotor. In certain situations only a high speed section is added to the imported assembly in order to produce a stand-alone speed changer (no motor).

The applicable subheading for the MFGK gearboxes will be 8483.40.5010, Harmonized Tariff Schedule of the United States (HTS), which provides for gearboxes and other speed changers, other, fixed ratio. The rate of duty will be 2.5 percent ad valorem.

In your letter you also asked about the marking requirements for these devices. You stated your feeling that, since the gearboxes will be finished in the U.S., assembled with domestic motors, and therefore changed into different articles of commerce, (namely gearmotors) the marking requirements should be waived. In the case of the MFGK units that will be mated with motors, we are in agreement with position. The items will be imported for your use only, they will not be resold in their original condition, and they will undergo a substantial transformation into gearmotors. As such a waiver of the individual country of origin marking requirements will be granted. Marking of the outer container with "Made In Japan" will still be required. Please contact your local port to make the proper arrangements.

In the case of those units that will be combined with a U.S. produced "high speed section", such combination resulting in a finished speed changer, we note your agreement to mark the finished article as "Made In Japan". Your compliance with this agreement may be verified by Customs at any time.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Jean F. Maguire
Area Director
New York Seaport