CLA-2 CO:R:C:M 954982 KCC
Mr. John Mattson
Norman G. Jensen, Inc.
3050 Metro Drive, Suite #300
Minneapolis, Minnesota 55425
RE: HRL 953670 modified; transaxle; Workman 3000 Series
Vehicles; 8704; motor vehicles for the transport of goods;
EN 87.08; General EN (III) Parts and Accessories
Dear Mr. Mattson:
This is in response to your letter dated September 7, 1993,
on behalf of the Toro Company, requesting modification of
Headquarters Ruling Letter (HRL) 953670 dated July 16, 1993.
That ruling provided the tariff classification of transaxles for
the Workman 3000 Series Vehicles under the Harmonized Tariff
Schedule of the United States.
FACTS:
Based on the information in your letter of November 23,
1992, and the attached brochure, in HRL 953670, we classified
transaxles for the Workman 3000 Series Vehicles under heading
8407, HTSUS, as a reciprocating piston engine of a kind used for
the propulsion of vehicles of chapter 87, or under heading 8408,
HTSUS, as compression-ignition internal combustion piston engine
(diesel or semi-diesel). You now state that the facts in HRL
953670 are incorrect because, as imported, the transaxles do not
contain engines.
The transaxles under consideration are for the Workman 3000
Series Vehicles which is a relatively small 4-wheel work vehicle
with two front seats and an open cargo area for the
transportation of merchandise. The vehicle can be used in a
variety of settings (park and sports grounds, worksites,
factories, agricultural fields, etc.).
The Workman 3000 Series utilizes the Toro transaxle which is
incorporated into one die cast aluminum housing. The unit has a
3-speed synchromesh transmission for smooth, easy shifting and
quiet operation, a high-low range that delivers six distinct work
ratios, a manual difflock to kick in extra traction when
required, high efficiency spiral bevel differential gears, and an
integrated hydraulic strainer and pump. This component is
directly coupled to an engine with an automotive type bell
housing, and a clutch to complete an all-enclosed power train.
The transaxle precisely delivers power to the rear wheels.
In the current situation, you state that the product to be
imported is the transaxle without an engine.
ISSUE:
What is the classification of the transaxle designed for use
in the Workman 3000 Series Vehicles under the HTSUS?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUS, states in part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes...."
In HRL 953670, we determined that the Workman 3000 Series
Vehicles were classified under heading 8704, HTSUS, which
provides for "Motor vehicles for the transport of goods...." We
are still of this opinion. See, HRL 953670, pg. 2.
Without an engine, the transaxles are not classifiable as
engines under headings 8407 or 8408, HTSUS. We are of the
opinion that the transaxles in this case are classified under
heading 8708, HTSUS, which provides for "Parts and accessories of
the motor vehicles of headings 8701 to 8705...."
Explanatory Note (EN) 87.08 of the Harmonized Commodity
Description and Coding System (HCDCS) (pg. 1432) states that
"[t]his heading covers parts and accessories of the motor
vehicles of headings 87.07 to 87.05, provided the parts and
accessories fulfil both the following conditions:
(i) They must be identifiable as being suitable for use
solely or principally with the above-mentioned vehicles;
and (II) They must not be excluded by the provisions of the
Notes to Section XVII (see the corresponding General
Explanatory Notes)."
EN (III) Parts and Accessories (pg. 1410) states that the
headings of Section XVII "...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...
(b) They must be suitable for use solely or principally
with the articles of Chapters 86 to 88...
(c) They must not be more specifically included elsewhere
in the Nomenclature...."
Additionally, EN 87.08 lists exemplars that are classifiable
under heading 8708, HTSUS, such as:
(D) Gear boxes of all types (mechanical, overdrive,
preselector, electro-mechanical, automatic, etc.); torque
converters; gear box casings; shafts (other than internal parts
of engines or motors); gear pinions; direct-drive dog-clutches
and selector rods, etc...
(F) Other transmission parts and components for example,
propeller shafts, half-shafts; gears, gearing; plain shaft
bearings; reduction gear assemblies; universal joints)....
The ENs, although not dispositive, are to be looked to for the
proper interpretation of the HTSUS. 54 Fed. Reg. 35127, 35128
(Aug. 23, 1989).
The transaxles under consideration are not excluded by the
Notes to Section XVII, HTSUS. Based on the information provided,
we are of the opinion that the transaxles are solely or
principally used with the Workman 3000 Series Vehicles, which are
vehicles of heading 8704, HTSUS. Moreover, the transaxles are
not more specifically provided for elsewhere in the HTSUS.
Therefore, the transaxles under consideration are classified
under subheading 8708.40.10, HTSUS, which provides for "...Gear
boxes...For the vehicles of subheading 8701.20, or heading 8702
or 8704."
HOLDING:
The transaxles without engines for the Workman 3000 Series
Vehicle are classified under subheading 8708.40.10, HTSUS, which
provides for "Parts and accessories of motor vehicles of headings
8701 to 8705...Gear boxes...For the vehicles of subheading
8701.20, or heading 8702 or 8704", which is dutiable at the
Column 1 rate of 3.1 percent ad valorem.
HRL 953670 is modified as set forth above.
Sincerely,
John Durant, Director Commercial Rulings Division