CLA-2 CO:R:C:M 089375 LTO
K.K. Carpenter
Mid-South Inc.
666 Riverside Drive
P.O. Box 3080
Memphis, Tennessee 38173
RE: Classification of power take off units (PTO's); 8432.90.00;
9817.00.50; 9817.00.60; "clutches;" EN 84.83(H); Section XVI,
note 2(a); HQ 086883; HQ 087076
Dear Mr. Carpenter:
This ruling is in response to your undated request for the
classification of power take off units under the Harmonized
Tariff Schedule of the United States Annotated (HTSUSA).
FACTS:
The power take off (PTO) unit is a mechanical device which
is used to engage or disengage a drive source (engine, etc.) from
the device being driven (pump, blower, etc.). It usually bolts
around the flywheel of the engine and contains a pressure plate,
clutch disc, clutch release bearing, and drive shaft. The PTO
rests in between the engine and a pump, and is connected to those
units with a drive shaft. A hand lever is mounted on the side
and is used to move the release bearing into the pressure plate,
forcing it to release the clutch disc, thereby disengaging the
engine from the drive shaft (which in turn powers the pump or
similar device).
The PTO's under consideration are designed for use solely
with irrigation pump systems and for agricultural purposes.
ISSUE:
Whether the power take off unit is properly classifiable
under subheading 8483.60.40 of the Harmonized Tariff Schedule of
the United States Annotated (HTSUSA), which provides for
"[c]lutches," or under subheading 8432.90.00, HTSUSA, which
provides for parts of other machinery for agricultural or
horticultural use.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
Heading 8483, HTSUSA, provides for the classification of
"clutches and shaft couplings . . . ." Subheading 8483.60.40,
HTSUSA, provides for "[c]lutches." The Harmonized Commodity
Description And Coding System Explanatory Notes (EN) to Heading
8483, p. 1328, state that clutches "are used to connect or
disconnect the drive at will." See EN 84.83(H). The PTO is a
manual clutch used to engage or disengage a drive source from the
device being driven, and is, therefore, classifiable under this
subheading.
The importer contends that the PTO is entitled to duty free
treatment under subheading 8432.90.00, HTSUSA, which provides for
parts of other machinery for agricultural or horticultural use.
However, classification of the PTO is subject to Section XVI,
Note 2, which provides that parts of machines are to be
classified as follows:
(a) Parts which are goods included in any of the
headings of chapters 84 and 85 (other than
headings 8485 and 8548) are in all cases to
be classified in their respective headings . . .
Thus, pursuant to Section XVI, Note 2, because the PTO's are
classifiable as goods (clutches) under Heading 8483, HTSUSA, they
are not classifiable under Heading 8432, HTSUSA.
The only other provisions which could have resulted in duty
free treatment of the PTO's are subheadings 9817.00.50, HTSUSA,
and 9817.00.60, HTSUSA. To fall within either of these special
classification headings, the terms of the headings must be met in
accordance with GRI 1. See HQ 086883, dated May 1, 1990; HQ
087076, dated June 14, 1990.
Subheading 9817.00.50, HTSUSA, describes "[m]achinery,
equipment and implements to be used for agricultural purposes."
The PTO does not constitute machinery, equipment or an implement
for agricultural use, because it is merely a component of the
motor/pump assembly and is not a stand-alone piece of equipment
possessing its own function.
Subheading 9817.00.60, HTSUSA, describes the following:
Parts to be used in articles provided for in
headings 8432, 8433, 8434 and 8436, whether or
not such parts are principally used as parts
of such articles and whether or not covered by
a specific provision within the meaning of
additional U.S. rule of interpretation 1(c).
Headings 8432, 8433, 8434 and 8436 refer to specific types of
agricultural and horticultural machinery. The PTO is not
provided for in any of these headings, and is, thus, not
classifiable under subheading 9817.00.60, HTSUSA.
HOLDING:
The PTO's are classifiable under subheading 8483.60.40,
HTSUSA, which provides for "clutches." The corresponding rate of
duty for this article is 5.7% ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division