CLA-2-84:OT:RR:NC:N2:206
Tanner Nordlund
4202 Company
4202 2nd St NW
Rochester, Minnesota 55901
RE: The tariff classification of an engine assembly for water pumping from India
Dear Mr. Nordlund :
In your letter dated January 24, 2020, you requested a tariff classification ruling.
The item under consideration has been identified as a Parts Assembly for a compression ignition reciprocating internal combustion piston engine, used in agricultural water pumping, and personal/agricultural auxiliary power applications. You state that at the time of importation these assemblies would consist of a crankcase, a cylinder/cylinder liner, a cylinder head, a crankshaft, a camshaft, rods, a piston, a flywheel, a valve train, and a valve cover. Components to be added in the United States include a fuel system (including injection pump), an air filtration system, an exhaust system, a fuel tank, starter and starter battery, a water pump or generator, a mounting base as this is a stationary engine, and a cooling system.
You suggested classifying this assembly in its imported condition in headings 8408, Harmonized Tariff Schedule of the United States (HTSUS), as compression ignition engines, or 8409, HTSUS, as parts of compression ignition engines.
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 may then be applied. In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. ENs, though not dispositive or legally binding, provide commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. Customs believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
GRI 2(a) provides that goods imported in an unassembled condition are to be classified as the assembled article. The ENs to GRI 2(a) direct us to the General ENs to Section XVI, HTSUS, which provide, in pertinent part, as follows: (IV) INCOMPLETE MACHINES (See General Interpretative Rule 2 (a)) “Throughout the Section, any reference to a machine or apparatus covers not only the complete machine, but also an incomplete machine (i.e., an assembly of parts so far advanced that it already has the main essential features of the complete machine). Thus a machine lacking only a flywheel, a bed plate, calender rolls, tool holders, etc., is classified in the same heading as the machine, and not in any separate heading providing for parts. Similarly a machine or apparatus normally incorporating an electric motor (e.g., electro-mechanical hand tools of heading 85.08) is classified in the same heading as the corresponding complete machine even if presented without that motor.”
The instant assembly does not only lack a starter or a starter battery, but other essential components to allow the engine to be fully operational. As a result, the assembly in its imported condition lacks the essential character of a complete engine.
The applicable subheading for the compression ignition reciprocating internal combustion piston engine Parts Assembly will be 8409.99.9990, HTSUS, which provides for “Parts suitable for use solely or principally with the engines of heading 8407 or 8408: Other: Other: Other.” The duty rate will be Free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, please contact National Import Specialist Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division