CLA-2-86:S:N:N1:106 811057
Mr. Ned H. Marshak, Esq.
Sharretts, Paley, Carter & Blauvelt, PC
67 Broad Street
New York, New York 10004
RE: The tariff classification of railway carbody shells from
Italy
Dear Mr. Marshak:
In your letter dated May 25, 1995, on behalf of Breda
Construzioni Ferroviarie S.p.a. of Italy, you requested a tariff
classification ruling. You included several exhibits supporting
your request.
The carbody shells of this request will be produced in Italy
and shipped to the United States for assembly with trucks and a
wide variety of other subassemblies and components into finished
self-propelled rail passenger coaches for sale to the Los Angeles
County Metropolitan Transportation Authority. There are two
different types of vehicles in this request, so-called "A" and
"B" married pairs. Neither "A" nor "B", when finished, can
operate alone since each vehicle contains certain unique
components which complement unique components found on the other.
In their imported condition, each of the carbody shells,
whether "A" or "B", consists of a steel frame and various
internal fittings, including the floor, carpet, seat supports,
steps, windows, roof panels, wiring, internal linings,
ventilating grills and other miscellaneous parts, components and
fittings. Major parts and components which will be fitted to the
shells after importation include: propulsion equipment, brakes,
couplers, wheels and axles, air conditioning, trucks,
communication system, seats, master controller and console, ATP
system, and radio and antenna. The FOB value of the carbody
shell as imported is said to represent approximately 38 percent
of the total value of the finished vehicle. It is estimated that
final assembly of the finished vehicle in the United States will
require approximately 900 hours per vehicle followed by a period
of extensive testing before final delivery.
The applicable subheading for the carbody shells will be
8607.99.5000, Harmonized Tariff Schedule of the United States
(HTS), which provides for parts of railway or tramway. The rate
of duty will be 3.7 percent ad valorem.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport