CLA-2 OT:RR:CTF:TCM H222415 LWF
Mr. Samuel Zekser
Sobel Shipping Co., Inc.
170 Broadway
Suite 1501
New York, NY 10038
RE: Revocation of New York Ruling Letter (NY) A85455, dated August 1, 1996, and Headquarters Ruling Letter (HQ) 952719, dated January 13, 1993; Classification of various parts of hydraulic braking systems for motor vehicles and tractors
Dear Mr. Zekser:
This letter is to inform you that U.S. Customs and Border Protection (CBP) has reconsidered New York Ruling Letter (NY) A85455, dated August 1, 1996, regarding the classification of certain hydraulic braking system parts for motor vehicles. In ruling letter NY A85455, CBP classified a brake wheel cylinder, brake master cylinder, and caliper piston under subheading 8708.39.50, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Brakes and servo-brakes and parts thereof: Other: For other vehicles.” CBP has reviewed ruling letter NY A85455 and finds the ruling to be in error. Accordingly, for the reasons set forth below, CBP is revoking ruling letter NY A85455.
Similarly, CBP believes that it can best meet its obligations under 19 C.F.R. § 177.7(a), regarding the sound administration of the HTSUS, by reconsidering certain published rulings so that CBP does not have in force rulings that may be inconsistent with its current views. Specifically, CBP is revoking Headquarters Ruling Letter (HQ) 952719, dated January 13, 1993, concerning the classification under the HTSUS of hydraulic braking systems for tractors.
In HQ 952719, CBP classified two models of compensating valve brake master cylinders, a brake fluid reservoir, and a brake fluid reservoir mounting bracket under subheading 8708.39.10, HTSUS, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Brakes and servo-brakes and parts thereof: Other: For tractors suitable for agricultural use.” CBP has reviewed ruling letter HQ 952719 and finds the ruling to be in error. Accordingly, for the reasons set forth below, CBP is revoking the ruling.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice of the proposed action was published in the Customs Bulletin, Vol. 50, No. 2 & 3, on January 20, 2016. No comments were received in response to the notice.
FACTS:
The instant merchandise is described as various subparts of hydraulic braking systems for motor vehicles. Hydraulic braking systems for motor vehicles use hydraulic pressure to transfer mechanical energy from a brake pedal to brake shoes located along the vehicle’s wheels. The primary function of the brake master cylinder, therefore, is to generate hydraulic pressure within the braking system.
Hydraulic pressure within a hydraulic braking system is generated by the application of mechanical force on a brake pedal to drive a piston inside the brake master cylinder. As mechanical force is applied from the brake pedal to the piston, the piston transfers hydraulic fluid from the brake fluid reservoir into the hydraulic lines of the braking system, thereby pressurizing the system. The pressurized hydraulic fluid is then used to actuate brake wheel cylinders attached at the vehicle’s wheels. The wheel cylinders convert the hydraulic pressure into mechanical energy by driving one or more caliper pistons against the vehicle’s brake shoes, thereby engaging the brake liners and slowing the vehicle.
In NY A85455, CBP described the hydraulic braking system subparts at issue as follows:
The first item… is a Brake Wheel Cylinder [Part #XEW104418] is a T-shaped piece of metal with rounded ends. There are black, soft rubber caps over each rounded end of the crossbar of the "T" and two blue plugs in the bottom of the of the stand of the "T". The item is 3 17/20" in width, 1 17/20" in height and 4 " in circumference.
The second item… is a Brake Master Cylinder [Part #XE98174]; it is a black, metal cylinder with an indented male connector and female connector on one end and an indented female connector on the other, wider end and on one side. There is a white, semi-transparent, hard plastic liquid container attached on top. The item measures 9" in length, 3" in circumference at the smaller end, 10" in circumference at the wider end and 4" in height including the liquid container.
The last item… is a Caliper Piston [Part #ZP8357]; it is a jar-shaped piece of metal with a circular opening on one end. It measures 2" in height and 7 3/5" in circumference.
In HQ 952719, CBP described the hydraulic braking system subparts at issue as follows:
The merchandise consists of two models of compensating valve brake master cylinders (part nos. 73067141 and 73067189), a brake fluid reservoir (part no. 73046077) and a brake fluid reservoir mounting bracket (part no. 64477544).
The compensating valve brake master cylinders are equipped with pushrods and are approximately 9” in length including the pushrod. The cylinder bore size ranges from .625” to 1” in diameter. The cylinders are designed for use in twin pedal braking systems. The brake fluid reservoir is designed to hold hydraulic mineral brake fluid in a capacity of 10.75 cu. in. (176 cc). The reservoir mounting bracket is exclusively designed to secure the brake fluid reservoir under consideration.
ISSUE:
Whether the brake master cylinders, brake wheel cylinder, caliper piston, compensating valve brake master cylinders, and brake fluid reservoir are properly classified under heading 8708, HTSUS, which provides for parts and accessories of motor vehicles, or in HTSUS Chapter 84, which provides for machinery and mechanical appliances.
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:
8412 Other engines and motors, and parts thereof:
8412.21.00 Hydraulic power engines and motors:
Linear acting (cylinders)…
* * * * *
8412 Other engines and motors, and parts thereof:
8412.90 Parts:
8412.90.90 Other…
* * * * *
8413 Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof:
8413.50.00 Other reciprocating positive displacement pumps…
* * * * *
8413 Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof:
8413.91.90 Parts:
Other…
* * * * *
8708 Parts and accessories of the motor vehicles of headings 8701 to 8705:
8708.30 Brakes and servo-brakes; parts thereof:
8708.30.10 For tractors suitable for agricultural use…
* * * * *
8708 Parts and accessories of the motor vehicles of headings 8701 to 8705:
8708.30 Brakes and servo-brakes; parts thereof:
8708.30.50 For other vehicles…
* * * * *
Note 2 to Section XVI, HTSUS, states, in pertinent part:
Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified in their respective headings;
Parts which are goods included in any of the headings of chapter 84 or 85 (other than the headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;
Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517;
* * * * *
Note 2(e) to Section XVII, HTSUS, states, in pertinent part:
The expressions “parts” and “parts and accessories” do not apply to the following articles, whether or not they are identifiable as for the goods of this section:
…
(e) Machines or apparatus of headings 8401 to 8479…
* * * * *
The Explanatory Notes to the Harmonized Commodity Description and Coding System (ENs) represent the official interpretation of the Harmonized System at the international level. While neither 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).
The ENs to Heading 84.12 state, in pertinent part:
The heading includes reaction engines (other than turbo-jets), pneumatic power engines and motors, wind engines (windmills), spring-operated or weight-operated motors, etc., certain hydraulic power engines and motors, and certain steam or other vapour power unites.
…
(B) HYDARULIC POWER ENGINES AND MOTORS
This group includes:
…
(3) Hydraulic cylinders consisting, for example, of a brass or steel barrel and a piston operated by oil (or other liquid) under pressure applied on one side (single-acting) of the piston, the energy of the liquid under pressure being converted into a linear motion. These cylinders are used on machine-tools, construction machinery, steering mechanisms, etc.
…
PARTS
Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI) parts of the engines and motors of this heading are also classified here (e.g., combustion chambers and vents for jet engines, fuel feed regulators, fuel nozzles, windmill airwheels, cylinders, pistons, slide-valves, centrifugal ball or flyweight-type governors, connecting-rods).
* * * * *
The ENs to Heading 84.13 state, in pertinent part:
The machines of this heading can be subdivided, according to their system of operation, in the following five categories.
RECIPROCATING POSTIVE DISPLACEMENT PUMPS
These use the linear suction or forcing action of a piston or plunger driven within a cylinder, the inlet and outlet being regulated by valves. “Single-acting” pumps utilize the thrust or suction of one end of the piston only; “double-acting” types pumps at both ends of the piston thus using both the forward and reverse strokes…
…
PARTS
Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the goods of this heading are also classified here, e.g., pump housings or bodies; rods specially designed to connect and drive the piston in pumps placed at some distance from the prime mover (e.g., pumping rods, “sucker rods”); pistons, plungers, vanes; cams (lobes); helicoidal screws, impeller wheels, diffuser vanes; buckets and bucket-fitted chains; bands for band-type liquid elevators; pressure chambers.
* * * * *
The ENs to Section XVII, HS, state, in relevant part:
(III) PARTS AND ACCESSORIES
[…]
It should, however, be noted that [parts and accessories] headings apply only to those parts or accessories which comply with all three of the following conditions :
(a) They must not be excluded by the terms of Note 2 to this Section (see paragraph (A) below).
(b) They must be suitable for use solely or principally with the articles of Chapters 86 to 88 (see paragraph (B) below).
(c) They must not be more specifically included elsewhere in the Nomenclature (see paragraph (C) below).
Parts and accessories excluded by Note 2 to Section XVII.
This Note excludes the following parts and accessories, whether or not they are identifiable as for the articles of this Section :
[…]
(5) Machines and mechanical appliances, and parts thereof, of headings 84.01 to 84.79, for example:
(d) Engines of all kinds including engines fitted with gear boxes and parts thereof, falling in headings 84.07 to 84.12.
(e) Pumps, compressors and fans (heading 84.13 or 84.14).
[…]
(C) Parts and accessories covered more specifically elsewhere in the Nomenclature.
Parts and accessories, even if identifiable as for the articles of this Section, are excluded if they are covered more specifically by another heading elsewhere in the Nomenclature[.] (Emphasis original).
* * * * *
The EN to Heading 87.08 states, in pertinent part:
This heading covers parts and accessories of the motor vehicles of headings 87.01 to 87.05, provided the parts and accessories fulfill both the following conditions:
They must be identifiable as being suitable for use solely or principally with the above-mentioned vehicles; and
They must not be excluded by the provisions of the Notes to Section XVII (see the corresponding General Explanatory Note).
[…]
The heading does not cover hydraulic or pneumatic cylinders of heading 84.12. (Emphasis original).
* * * * *
In ruling letter NY A85455, CBP determined that a brake master cylinder, brake wheel cylinder, and caliper piston were properly classified under subheading 8708.39.50, HTSUS (1996), which provided for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Brakes and servo-brakes and parts thereof: Other: For other vehicles.” Likewise, in HQ 952719, CBP concluded that compensating valve brake master cylinders, a brake fluid reservoir, and a brake fluid reservoir mounting bracket were classified under subheading 8708.39.10, HTSUS (1993), which provided for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Brakes and servo-brakes and parts thereof: Other: For tractors suitable for agricultural use.”
As an initial matter, however, this office notes that the U.S. Court of International Trade (CIT) has provided guidance concerning the classification of merchandise as “parts of motor vehicles” of heading 8708, HTSUS, and has held that a subpart of a particular automotive part should not be classified in heading 8708, HTSUS, if that subpart is more specifically provided for elsewhere in the Nomenclature. See Mitsubishi Elec. Am., Inc. v. United States, 19 C.I.T. 378 (1995). Specifically, the CIT in Mitsubishi addressed the classification of an automotive “starter drive assembly” and noted that:
[I]f the subject merchandise is not a clutch, but rather a part of a starter motor, then it cannot be classified as a part of an automobile, even though it is used solely in automobiles. This is because a subpart of a particular part of an article is more specifically provided for as a part of the part than as a part of the whole. Id. at 383 n.3.
Similarly, because Note 2(e) to Section XVII, HTSUS, states that the terms “parts” and “parts and accessories” do not apply to articles classifiable in headings 8401 through 8479, HTSUS, CBP must first examine whether the articles classified in ruling letters NY A85455 and HQ 952719 are described by the terms of headings 8401 through 8479, HTSUS. See also EN 87.08, HS (“[Parts and accessories of heading 87.08, HS] must not be excluded by the provisions of the Notes to Section XVII (see the corresponding General Explanatory Note).”).
With respect to the classification of brake master cylinders, CBP observes that heading 8413, HTSUS, provides, in relevant part, for “Pumps for liquids, whether or not fitted with a measuring device.” The term “pumps for liquids” is not defined in the Nomenclature; however, the ENs to heading 84.13, HS, describe the headings as covering certain “machines and appliances for raising or otherwise continuously displacing volumes of liquids.” Specifically, EN 84.13(A), HS, states that the heading includes “reciprocating positive displacement pumps” that employ “linear suction or forcing action of a piston or plunger driven within a cylinder” to displace volumes of liquid.
Upon review of the physical characteristics and functions of the brake master cylinders, CBP finds that the articles are properly described as pumps of heading 8413, HTSUS, because they are displacement pumps used to pressurize hydraulic fluid within a hydraulic braking system. Pistons located inside the brake master cylinders are manually operated by movement of the brake pedal, and the linear action of the pistons forces hydraulic fluid from the brake fluid reservoir into the hydraulic lines of the brake system. Accordingly, CBP observes that the function of the brake master cylinders is akin to the description of “reciprocating positive displace pumps” provided in EN 84.13(A), HS, and therefore concludes that the brake master cylinders are properly identified as pumps of heading 8413, HTSUS, by application of GRI 1. Specifically, they are classifiable in subheading 8413.50.00, HTSUS, which provides for “Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; parts thereof: Other reciprocating positive displacement pumps.” See NY N096530, dated March 30, 2010; NY N107239, dated June 10, 2010; NY N014493, dated June 24, 2007; and NY N011979, dated June 28, 2007.
With respect to the classification of the brake fluid reservoir and brake fluid reservoir mounting bracket, this office notes that CBP has previously classified parts of brake master cylinders in subheading 8413.91, HTSUS. See NY N109341, dated July 6, 2010; and NY N113336, dated July 23, 2010. Pursuant to Note 2(b) to Section XVI, HTSUS, parts of pumps for liquids, if suitable for use solely or principally with a machine of heading 8413, HTSUS, are to be classified with the machines of the same heading. Consequently, because the brake fluid reservoir and brake fluid reservoir mounting bracket supply hydraulic fluid to the brake master cylinder and are suitable for use solely or principally with master brake cylinders, the reservoir and the reservoir mounting bracket are classified as “parts” of heading 8413, HTSUS, pursuant to Note 2(b) to Section XVI. Specifically, they are classified under subheading 8413.91.90, HTSUS, which provides for “Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof: Parts: Of pumps: Other.”
Because the brake master cylinders, brake fluid reservoir, and brake fluid reservoir mounting bracket are classified in heading 8413, HTSUS, their classification under heading 8708, HTSUS is precluded by operation of Note 2(e) to Section XVII, HTSUS.
Concerning the classification of the brake wheel cylinder, CBP observes that heading 8412, HTSUS, provides for, “Other engines and motors, and parts thereof.” Specifically, the ENs to heading 84.12, HS, describe the heading as covering certain hydraulic power engines and motors, including:
(3) Hydraulic cylinders consisting, for example, of a brass or steel barrel and a piston operated by oil (or other liquid) under pressure applied on one side (single-acting) or on both sides (double-acting) of the piston, the energy of the liquid under pressure being converted into a linear motion. These cylinders are used on machine-tools, construction machinery, steering mechanisms, etc. EN 84.12(B)(3), HS. (Emphasis original).
* * * * *
Upon review of the physical characteristics and function of the brake wheel cylinder, CBP finds that the brake wheel cylinder features pistons operated by pressurized hydraulic fluid. When hydraulic pressure is applied to the brake wheel cylinder, the movement of the pistons converts the hydraulic pressure into mechanical force to move the vehicle’s brake shoes. Accordingly, CBP observes that the brake wheel cylinder is akin in both form and function to the “hydraulic cylinder” exemplar described by the ENs to heading 84.12, HS, and is properly classified, by application of GRI 1, in heading 8412, HTSUS. Specifically, the brake wheel cylinder is classifiable in subheading 8412.21.00, HTSUS. See NY N091357, dated February 1, 2010.
With respect to the classification of the caliper piston, this office again notes that pursuant to Note 2(b) to Section XVI, HTSUS, parts of hydraulic power engines and motors, if suitable for use solely or principally with a machine of heading 8412, HTSUS, are to be classified with the machines of the same heading. Consequently, because the caliper piston is necessary for the proper functioning of the brake wheel cylinder and is suitable for use solely or principally within the brake wheel cylinder, the caliper piston is classified in heading 8412, HTSUS, as a part of a linear acting cylinder. Specifically, it is classified under subheading 8412.90.90, HTSUS, which provides for “Other engines and motors, and parts thereof: Parts: Other.”
Because the brake wheel cylinder and caliper piston are classified in heading 8412, HTSUS, their classification under heading 8708, HTSUS is precluded by operation of Note 2(e) to Section XVII, HTSUS.
HOLDING:
By application of GRIs 1 (Note 2(a) to Section XVI) and 6, the brake master cylinders are classified under heading, 8413, HTSUS, specifically in subheading 8413.50.00, HTSUS, which provides for “Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof: Other reciprocating positive displacement pumps.” The column one, general rate of duty is Free.
By application of GRIs 1 (Note 2(b) to Section XVI), the brake fluid reservoir and brake fluid reservoir mounting bracket are classified under heading, 8413, HTSUS, specifically in subheading 8413.91.90, HTSUS, which provides for “Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof: Parts: Of pumps: Other.” The column one, general rate of duty is Free.
By application of GRIs 1 (Note 2(a) to Section XVI) and 6, the brake wheel cylinder is classified under heading, 8412, HTSUS, specifically in subheading 8412.21.00, HTSUS, which provides for “Other engines and motors, and parts thereof: Hydraulic power engines and motors: Linear acting (cylinders).” The column one, general rate of duty is Free.
By application of GRIs 1 (Note 2(b) to Section XVI), the caliper piston is classified under heading, 8412, HTSUS, specifically in subheading 8412.90.90, HTSUS, which provides for “Other engines and motors, and parts thereof: Parts: Other.” The column one, general rate of duty is Free.
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 http://www.usitc.gov.
EFFECT ON OTHER RULINGS:
In accordance with the above analysis, ruling letters NY A85455, dated August 1, 1996, and HQ 952719, dated January 13, 1993, are hereby REVOKED.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division