CLA-2 OT:RR:CTF:TCM H019057 ADK
Peter Middleton
Middleton & Shrull
50 Mall Road, Suite 205
Burlington, MA 01803
RE: Classification of various components for a LUV cart
Dear Mr. Middleton:
This is in response to your letter dated October 15, 2007, to United States Customs and Border Protection (CBP) in New York, in which you requested a binding ruling pertaining to classification of various components of the LUV Cart, also referred to as the Neuton Garden Cart, under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was referred to this office for a response.
FACTS:
The LUV cart is a three wheeled self-propelled electric garden cart which is comprised of the following components: (1) Lower tub with Mounting Plate, (2) Upper Tub, (3) Lower Handle, (4) Upper Handle Bar and Foam Grip Assembly, (5) Drive Train Assembly, (6) Front wheels with bearings, (7) Battery Charger, (8) Rear Caster Wheel Assembly, (9) Control Tray Assembly, (10) Bolts/Hardware, and User’s Manual. The completed LUV cart was the subject of Headquarters Ruling Letter (HQ) 967422, dated January 7, 2005. In that ruling, CBP concluded that the cart was classifiable under heading 8704, HTSUS, as “other motor vehicles for the transport of goods.”
The importer is now seeking to enter the individual components of the LUV cart in five different shipments instead of entering the LUV cart as a complete unit. The proposed breakdown of components for each of the five shipments is as follows:
Shipment 1:
(1) Lower tub with Mounting Plate
(2) Upper Tub
(3) Lower Handle
(4) Upper Handle Bar and Foam Grip Assembly
Shipment 2:
(5) Drive Train Assembly (includes motor, gear box, and 12V DC lead acid battery). In a motor vehicle, the drive train is the group of components that generate power and deliver it to the road surface.
Shipment 3:
(6) Front wheels with bearings
(7) Battery Charger
Shipment 4:
(8) Rear Caster Wheel Assembly
(9) Control Tray Assembly: This is composed of three main switches and seven electrical connectors. The first switch is the Gear Control Switch, or Rocker Switch, with three settings – reverse momentary, forward and fast forward. The second switch is the Paddle Switch, a lever like device which presses on a button switch and causes the electric motor to engage. The third is the Key Switch which is a standard key type on/off switch. The Assembly also houses a Charger Jack which is a plug-in electrical connector for the separate battery charging unit.
Shipment 5:
(10) Battery Charger
(11) Control Tray Assembly
(12) Bolts, Hardware & Owner’s Manual Package
Only one configuration of components will be imported on a particular vessel on a given day. After importation, the components of the five shipments will be combined at the company’s facility in the United States. The importer asserts that each component should be classified individually.
ISSUE:
What is the proper classification under the HTSUS for each of the five shipments of the LUV cart components?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. The HTSUS provisions under consideration are as follows:
4901 Printed books, brochures, leaflets and similar printed matter, whether or not in single sheets:
Other:
4901.99.00 Other….
* * *
8501 Electric motors and generators (excluding generating sets):
Other DC motors; DC generators:
8501.31 Of an output not exceeding 750W:
Motors:
8501.31.20 Exceeding 37.5 W but not exceeding 74.6 W
* * *
8504 Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof:
8504.40 Static converters:
8504.40.95 Other….
* * *
8536 Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a voltage not exceeding 1,000 V….:
* * *
8537 Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517:
8537.10 For a voltage not exceeding 1,000 V:
8537.10.60 Motor control centers
* * *
8704 Motor vehicles for the transport of goods:
8704.90.00 Other….
* * *
8707 Bodies (including cabs), for the motor vehicles of headings 8701 to 8705:
8707.90 Other:
8707.90.50 Other….
* * *
8708 Parts and accessories of the motor vehicles of headings 8701 to 8705:
8708.70 Road wheels and parts and accessories thereof:
For other vehicles:
8708.70.45 Road Wheels….
* * *
Other parts and accessories:
8708.99 Other:
Other:
Other:
8708.99.81 Other….
* * *
In addition to the terms of the headings, classification of goods under the HTSUS is governed by the applicable section or chapter notes. The legal notes to Section XVII provide, in pertinent part:
3. References in chapters 86 to 88 to “parts” or “accessories” do not apply to parts or accessories which are not suitable for use solely or principally with the articles of those chapters. A part or accessory which answers to a description in two or more of the headings of those chapters is to be
classified under that heading which corresponds to the principal use of that part or accessory.
* * *
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
According to the importer, each component on each of the five shipments should be classified individually. This argument relies on the assumption that the imported components are not classifiable under GRI 2(a) as the complete or finished LUV cart. That rule provides:
Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled.
(Emphasis added)
* * *
The first sentence of GRI 2(a) refers to merchandise which is presented “incomplete or unfinished,” but has the essential character of the complete or finished article. The second sentence applies to “complete or finished merchandise” which is entered unassembled or disassembled. None of the five shipments house a complete set of the individual components of the LUV cart. As a result, the shipments cannot be classified as finished LUV carts under the second sentence of GRI 2(a). See Headquarters Ruling Letter (HQ) 965708, dated September 5, 2002, and HQ 956607, dated December 1, 1994.
We next consider whether any of the five shipments constitute “incomplete or unfinished” articles with the essential character of the complete or finished LUV carts. The term “essential character” means the attribute that serves to distinguish what an article is; that which is indispensable to the structure, core or condition of the good; the aggregate of distinctive component parts that establishes the identity of an article as what it is, its very essence. See HQ 967975, dated March 24, 2006.
CBP has previously considered the classification of “motor vehicles for the transport of goods” entered incomplete or unfinished. In HQ 962690, dated September 22, 1999, we classified three components of the PowaKaddy Classic, a 3-wheeled motorized cart for carrying a golf bag with clubs. With respect to the three imported components, the chassis, clip-on wheel assembly, and the battery assembly, we noted:
The…chassis and the…clip-on wheel assembly comprise the chassis-body framework which, in large part, supports the golf bag and clubs. Together with the battery, motor and controller, they provide the motive force that imparts the cart's maneuverability….The three components under protest…are the very essence of a complete or finished motorized cart. They constitute the aggregate of distinctive component parts that establish its identity as what it is, a motorized cart for carrying a golf bag with clubs. (Emphasis added).
See also HQ 962985, dated December 13, 1999 (Three-wheeled, battery-operated, motorized carts for carrying a golf bag with clubs, consisting of the frame, motor and controls, are classifiable in heading 8704, HTSUS, incomplete or unfinished.)
Applying this administrative precedent to the subject matter, we find that none of the five shipments contain components which constitute an “aggregate of distinctive parts” that establish the LUV cart’s identity as a motorized garden cart. The chassis-body framework parts which support the garden tools are not imported together. Furthermore, the battery, motor and controller are not imported in the same shipment as the structural components. As a result, there is nothing to provide the motive force that “imparts the cart’s maneuverability.” Although the five shipments together constitute the complete LUV cart, no individual shipment imparts the “very essence of the complete or finished motorized cart.” As a result, the shipments are not classifiable as motor vehicles of heading 8704, HTSUS, incomplete or unfinished. Instead, the various components of the LUV cart should be classified individually upon entry.
We next consider the classification of each component. The importer asserts that four of the individual components, imported on three different shipments, are classifiable under heading 8708, HTSUS, as “parts and accessories of the motor vehicles of headings 8701 to 8705.” These components are the lower handle and upper handle bar and foam grip assembly of Shipment 1, the front wheels with bearings of Shipment 3 and the rear caster wheel assembly of Shipment 4. Articles classifiable in heading 8708, HTSUS, must satisfy note 3 to section XVII, which requires that they are used solely or principally with an article of chapters 86 to 88. In this case, each of the four above-mentioned components are to be used solely with the garden cart at issue. They are manufactured to be compatible with the LUV cart and are imported specifically to be used in the assembly of the LUV cart. As a result, they are classified in heading 8708, HTSUS, which provides for “[p]arts and accessories of the motor vehicles of headings 8701 to 8705.” See HQ 967858, dated May 19, 2006. In the absence of a specific provision, the parts are classifiable under subheading 8708.99.81, HTSUS, which provides generally for “other parts and accessories.”
We next consider the remaining components of Shipment 1 – the lower tub with mounting plate and the upper tub. The importer asserts that these articles are classifiable under heading 8707, HTSUS, as “bodies for the motor vehicles of headings 8701 to 8705.” We agree. Both tubs are to be used in the assembly of the body of a motor vehicle of heading 8704, HTSUS, i.e., the LUV cart. As a result, they are classifiable under heading 8707, HTSUS. Specifically, they are classifiable under subheading 8707.90.5060, HTSUSA, which provides for other bodies for vehicles of heading 8704, HTSUS.
Shipment 2 contains the drive train assembly. A drive train assembly refers to the mechanical parts designed to provide the automobile with mobility (i.e., engine, transmission, driveshaft, axles). See HQ 563403, dated March 27, 2006. Such articles fall directly within the category of “electric motors and generators” as provided for in heading 8501, HTSUS. See New York Ruling Letter (NY) M80392, dated March 2, 2006. This particular drive train assembly is classifiable under subheading 8501.31.2000, HTSUSA, because the output exceeds 37.5 Watts but does not exceed 74.6 Watts.
Shipments 3 and 5 contain battery chargers asserted to be classified in heading 8504, HTSUS. The ENs 85.04(II) explains that Electrical Static Converters "…are used to convert electrical energy in order to adapt it for further use." Battery chargers in general are used precisely for the purpose of converting electrical energy in order to adapt it for further use. Accordingly, we find that the battery chargers are provided for in heading 8504, HTSUS. See HQ 968226, dated August 8, 2006, and HQ 968171, dated June 1, 2006. Specifically, they are static converters of subheading 8504.40, HTSUS.
Shipments 4 and 5 both contain the Control Tray Assemblies which are composed of three main switches, the Gear Control Switch, the Paddle Switch, and the Key Switch, and seven electrical connectors. The assemblies also house a Charger Jack which is a plug-in electrical connector for the separate battery charging unit. The importer asserts that these assemblies are classifiable in heading 8537, HTSUS as “electrical control[s] for the distribution of electricity.” Articles classifiable in this heading must be “equipped with two or more apparatus of heading 8535 or 8536. Before classifying the Control Tray Assemblies, therefore, we must first consider the classification of their parts.
Heading 8536, HTSUS, provides specifically for “electrical apparatus for switching…electrical circuits.” The ENs further explain that the apparatus classified within heading 8536, HTSUS, are essentially devices “for making or breaking one or more circuits in which they are connected.” The three main switches of this Control Tray Assembly satisfy these requirements of this heading. The Gear Control Switch, Paddle Switch and Key Switch, are three electrical apparatus used for the switching of electrical circuits. The Gear Control Switch causes the LUV cart to move in either a reverse or forward direction, the Paddle switch causes the electric motor to engage and the Key Switch turns the cart on or off. These three switches are therefore classifiable in heading 8536, HTSUS.
We next consider the classification of the two Control Tray Assemblies. The assembly satisfies the first requirement of the legal text, i.e., that it is composed of two or more apparatus of heading 8536, HTSUS. See HQ 964559, dated July 16, 2001. Furthermore, they are used specifically for the electrical control of the cart. As a result, they are classifiable in the importer’s proposed heading. Specifically, they are classifiable under subheading 8537.10.6000, HTSUSA, because they are motor control centers for which the voltage does not exceed 1,000 V.
Finally, the importer indicates that Shipment 5 contains Bolts, Hardware & an Owner’s Manual Package. We will first consider the Owner’s Manual Package. In general, printed manuals are classifiable under heading 4901, HTSUS, which provides for “printed books, brochures, leaflets and similar printed matter, whether or not in single sheets.” See HQ 084702, dated August 11, 1989 and NY E89772, dated November 26, 1999. The importer’s description, however, indicates that Shipment 5 contains an “Owner’s Manual Package.” It is unclear whether this package includes more than simply a printed manual. Without further information as to the exact contents of the package, we are unable to offer a correct classification. Similarly, the importer has not provided a specific description of the bolts and hardware included in the shipment. Without this information, we are unable to offer a correct classification. We note, however, that bolts and hardware are provided for under various eo nomine provisions.
HOLDING:
The classifications for the imported component are as follows:
Shipment 1:
Lower tub with Mounting Plate and Upper Tub: 8707.90.5060, HTSUSA, which provides for “[b]odies (including cabs), for the motor vehicles of headings 8701 to 8705: Other: Other: For vehicles of heading 8704.” The general column one rate of duty is 4 percent ad valorem.
Lower Handle and Upper Handle Bar and Foam Grip Assembly: 8708.99.8180, HTSUSA, which provides for “[p]arts and accessories of the motor vehicles of
headings 8701 to 8705: Other parts and accessories: Other: Other: Other: Other….Other.” The general column one rate of duty is 2.5 percent ad valorem.
Shipment 2:
Drive Train Assembly (including motor, gear box, and 12V DC lead acid battery): 8501.31.2000, HTSUSA, which provides for “[e]lectric motors and generators (excluding generating sets): Other DC motors; DC generators: Of an output not exceeding 750W: Motors: Exceeding 37.5 W but not exceeding 74.6 W.” The general column one rate of duty is 2.8 percent ad valorem.
Shipment 3:
Front wheels with bearings: 8708.70.4530, HTSUSA, which provides for: “[p]arts and accessories of the motor vehicles of headings 8701 to 8705: Road wheels and parts and accessories thereof: For tractors (except road tractors): For other vehicles: Road Wheels….For vehicles of subheading 8701.20 or heading 8702, 8704 or 8705.” The general column one rate of duty is 2.5 percent ad valorem.
Battery Charger: 8504.40.9510, HTSUSA, which provides for “[e]lectrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Static converters: Other…. Rectifiers and rectifying apparatus: Power supplies: With a power output not exceeding 50W.” The general column one rate of duty is 1.5 percent ad valorem.
Shipment 4:
Rear Caster Wheel Assembly: 8708.70.4530, HTSUSA, which provides for: “[p]arts and accessories of the motor vehicles of headings 8701 to 8705: Road wheels and parts and accessories thereof: For tractors (except road tractors): For other vehicles: Road Wheels….For vehicles of subheading 8701.20 or heading 8702, 8704 or 8705.” The general column one rate of duty is 2.5 percent ad valorem
Control Tray Assembly: 8537.10.6000, HTSUSA, which provides for: “[b]oards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517: For a voltage not exceeding 1,000 V: Motor control centers” The general column one rate of duty is 2.7 percent ad valorem.
Shipment 5:
Battery Charger: 8504.40.9510, HTSUSA, which provides for “[e]lectrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Static converters: Other…. Power supplies: With a power output not exceeding 50W.” The general column one rate of duty is 1.5 percent ad valorem.
Control Tray Assembly: 8537.10.6000, HTSUSA, which provides for: “[b]oards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517: For a voltage not exceeding 1,000 V: Motor control centers” The general column one rate of duty is 2.7 percent ad valorem.
Duty rates are provided for convenience only and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
Sincerely,
Gail A. Hamill, Chief
Tariff Classification and Marking Branch