OT:RR:CTF:EMAIN H316387 JRG
Center Director
Automotive & Aerospace Center of Excellence and Expertise
U.S. Customs and Border Protection
477 Michigan Ave., Rm. 281
Detroit, MI 48226
RE: Application for Further Review of Protest No. 1703-20-108669; Classification; Applicability of Section 301 Trade Remedies; Certain automobile control arms from China
Dear Center Director:
This is our decision regarding an Application for Further Review (AFR) of Protest No. 1703-20-108669 filed on behalf of Dorman Products, Inc. (Protestant). The Protest and AFR concern the classification of certain automobile control arms from China under the Harmonized Tariff Schedule of the United States (HTSUS) and the applicability of Section 301 trade remedies. The AFR was forwarded to this office for consideration. Upon Protestant's request, U.S. Customs and Border Protection (CBP) met with counsel and representatives from Protestant on December 8, 2023, pursuant to 19 CFR 177.4.
FACTS:
The three "Suspension Control Arms," Part Nos. CB65103, CB81117, and CB90204, are control arm and ball joint assemblies for select passenger vehicles. The control arms are made of either steel or aluminum with maximum lengths ranging from 333.7 mm to 410 mm and widths from 228.5 mm to 430 mm. The assemblies also include either a threaded or pinch stud type ball joint with a 10 mm or 14 mm thread diameter and rubber bushings. The importer describes the subject control arms as suspension links intended to control wheel motion in the fore-and-aft direction.
The subject control arms were entered on March 1, 2019, and liquidated on January 24, 2020. Part No. CB90204 was liquidated under heading 7318, specifically under subheading 7318.15.80, HTSUS, which provides for "Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel: Threaded articles: Other screws and bolts, whether or not with their nuts or washers: Other: Having shanks or threads with a diameter of 6 mm or more." Part Nos. CB65103 and CB81117 were liquidated under heading 8708, specifically subheading 8708.80.65, HTSUS, which provides for "Parts and accessories of the motor vehicles of headings 8701 to 8705: Suspension systems and parts thereof (including shock absorbers): Parts: Other: Other." As products of China, the merchandise was subject to an additional 10 percent ad valorem duty[1] imposed by heading 9903, HTSUS, specifically subheading 9903.88.03, which provides for "Articles the product of China, as provided for in U.S. note 20(e) to this subchapter and as provided for in the subheadings enumerated in U.S. note 20(f) [to this subchapter]."
On July 16, 2020, Protestant filed the instant Protest and AFR. Protestant argued Part No. CB90204 is properly classified under subheading 8708.80.65, HTSUS, detailed above. Protestant further contended all the subject control arms are entitled to relief from Section 301 duties under U.S. Note 20(vv)(146) and the corresponding subheading 9903.88.43, HTSUS, which provides for "Torque rods, also known as torque arms, radius rods or radius arms (described in statistical reporting number 8708.80.6590)."
On December 1, 2020, the Protest was denied in part, with the Center agreeing that the subject control arm is appropriately classified under heading 8708, HTSUS, but denying Protestant's claim that they fall within the U.S. Note 20(vv)(146) exclusion because "the exclusion is for [t]orque rods, also known as torque arms, radius rods or radius arms, not control arms."
ISSUE:
Whether the subject control arms fall within the scope of the Section 301 exclusion granted under U.S. Note 20(vv)(146) and the corresponding subheading 9903.88.43, HTSUS.
LAW AND ANALYSIS:
A decision on classification and the rate and amount of duties chargeable is a protestable matter under 19 U.S.C. 1514(a)(2). The subject Protest was timely filed on July 16, 2020, within 180 days of liquidation of the entry, pursuant to 19 U.S.C. 1514(c)(3). Further Review of Protest No. 1703-20-108669 is properly accorded pursuant to 19 CFR 174.24(a), as the decision against which the protest was filed is alleged to be inconsistent with a CBP ruling or decision with respect to the same or substantially similar merchandise.
Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods is determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event 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 will then be applied in order.
There is no dispute that the subject control arms are properly classified under subheading 8708.80.65, HTSUS. This determination is consistent with NYs N233333 and K84946, cited supra, in which substantially similar merchandise was classified under subheading 8708.80.65, HTSUS, or a former heading for "Parts for suspension systems."
Chapter 99, Subchapter III, U.S. Note 20(vv)(146) covers "Torque rods, also known as torque arms, radius rods or radius arms (described in statistical reporting number 8708.80.6590)" and corresponds to subheading 9903.88.43, HTSUS. Although not explicitly listed in U.S. Note 20(vv)(146), Protestant asserted the terms "control arm," "torque arm," "radius rod," and "radius arm" are used interchangeably by the industry because they are all "suspension links intended to control wheel motion in the fore-and-aft direction." Specifically, Protestant argued in its supplemental submission on this protest, dated November 19, 2020, that the control arms have the same form and function as torque rods. Protestant elaborates, stating they both "consist of a straight or curved suspension member, typically made of steel with a bushing on each end, with one end typically attached to the wheel carrier or axle and the other to the chassis of the vehicle" and "function as a suspension link intended to control wheel motion in the longitudinal (fore-aft) direction, resisting wheel drive under braking forces and wheel hop under acceleration."
Neither "torque rod," "torque arms," "radius rods," nor "radius arms" are defined in the HTSUS or ENs. As a result, their correct meaning is their common, or commercial, meaning. See Rocknel Fastener, Inc. v. United States, 267 F.3d 1354, 1356 (Fed. Cir. 2001) ("To ascertain the common meaning of a term, a court may consult 'dictionaries, scientific authorities, and other reliable information sources' and 'lexicographic and other materials.'" (quoting C.J. Tower & Sons of Buffalo, Inc. v. United States, 673 F.2d 1268, 1271, 69 C.C.P.A. 128 (C.C.P.A. 1982))); see also Simod Am. Corp. v. United States, 872 F.2d 1572, 1576 (Fed. Cir. 1989)).
Contrary to Protestant's contention, "control arm" is a distinct term from "torque rod," "torque arm," "radius rod," and "radius arm." According to SAE International's[2] Dictionary for Automotive Engineers, control arms are "[a] metal strut on the suspension that is found at the highest and bottom of the wheel spindle. The upper and lower control arms allow the front wheels to change direction." SAE International, Dictionary for Automotive Engineers 148 (John F. Kershaw ed., 2023); see also What Does a Control Arm Do? Bad Control Arm Symptoms, https://www.autozone.com/diy/suspension/what-is-a-control-arm-on-a-car (last visited Oct. 26, 2023) (stating control arms are typically curved or A-shaped and connect the car's frame to the wheel hub assembly, "mov[ing] up and down with the spring when a car hits a . . . road irregularity. . . . allow[ing] the tires to maintain contact with the road and, thus, control."). On the other hand, SAE International defines a torque rod, radius rod, and radius arm as:
A suspension component or link used to control wheel motion in the longitudinal direction. The link is connected with a bushing on one end to the axle to the chassis of the vehicle. Radius rods, torque rods, or torsion bars help maintain the proper angles for the axle assembly and also help absorb and manage driving and brake force. The torque rod is also referred to as a radius rod by some truck manufacturers. Hendrickson refers to it as an Ultra Rod.
[SAE International, Dictionary for Automotive Engineers 444 (John F. Kershaw ed., 2023)]
SAE International's definition is consistent with Michigan Truck Spring's, which describes torque rods as straight rods used in the suspension of medium and heavy-duty trucks and trailers "to limit the movement of the axles without limiting suspension articulation" through "keep[ing] the axles centered in the frame and control[ling] the driveline angles by managing the torque that is running through the driveline and axles." Torque Arms and Torque Rods, https://www.truckspring.com/heavy-duty-truck-parts/suspension-parts/torque-rods.aspx (last visited Oct. 16, 2023).
In turn, while both control arms and torque rods are used in the suspension of vehicles and, consequently, classified under heading 8708.80.65, they perform different functions that contribute to the vehicle's overall suspension system. Therefore, control arms are not included in the U.S. Note 20(vv)(146) and subheading 9903.88.43 exclusion because they are not torque rods, torque arms, radius rods, or radius arms.
HOLDING:
By application of GRIs 1 and 6, the Automobile Control Arm are classified under 8708.80.65, HTSUS, which provides for, "Parts and accessories of the motor vehicles of headings 8701 to 8705: Suspension systems and parts thereof (including shock absorbers): Parts: Other: Other." The general, column one rate of duty is 2.5%.
Pursuant to U.S. note 20 to subchapter III, chapter 99, HTSUS, products of China classified under subheading 8708.80.65, HTSUS, unless specifically excluded, were subject to an additional 10 percent ad valorem rate of duty. At the time of importation, an importer is required to report the chapter 99 subheading, i.e., 9903.88.43, in addition to subheading 8708.80.65, HTSUS, listed above.
You are instructed to DENY the Protest, except to the extent reclassification of the merchandise under subheading 8708.80.65, HTSUS, as indicated above, results in a net duty reduction and partial allowance.
You are instructed to notify the Protestant of this decision no later than 60 days from the date of this decision. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to this notification. Sixty days from the date of the decision, the
Office of Trade, Regulations and Rulings will make the decision available to CBP personnel and the public on the Customs Rulings Online Search System (CROSS) at https://rulings.cbp.gov/, or other methods of public distribution.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division
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[1] The additional duty of 10 percent was subsequently modified to 25 percent. See 84 Fed. Reg. 20459 (May 9, 2019).
[2] "SAE International is a global association of more than 128,000 engineers and related technical experts in the aerospace, automotive and commercial-vehicle industries. Our core competencies are life-long learning and voluntary consensus standards development." About SAE International, https://www.sae.org/about (last visited Jan. 23, 2024).