CLA-2-86:S:N:N1:106-874666
Mr. H. Kumei
Assistant to the General Manager
Sumitomo Corporation of America
345 Park Avenue
New York, NY 10154
RE: The tariff classification of railway car bodies from Japan.
Dear Mr. Kumei:
In your letter dated May 22, 1992 you requested a tariff
classification ruling. Your request included drawings and other
pertinent information.
The imported items are railway car bodies imported in shell
form from Japan. There will be 7 car bodies of self-propelled
motor cars and 10 car bodies of not self-propelled trailer cars.
These passenger cars are destined for the Northern Indiana
Commuter Transportation District. After importation, these car
bodies will be assembled with a variety of U. S.-sourced
components into complete units by local assembly contractors
under the supervision of Nippon Sharyo's engineers at a facility
of the Maryland Department of Transportation in suburban
Baltimore.
Each car body shell is imported with windows, marker lights,
and doors on the exterior and with floor covering, wainscots,
window masks, partition panels, and inspection panels in the
interior. Also, most of the wiring and piping work will be done
in Japan, while terminating of wires and cables as well as brake
piping will be done in the U. S. Most of the major car
components are produced and installed in the U. S., including
pantographs, passenger seats, air conditioning units,
interior/exterior lighting, many electrical systems, propulsion
controls (motor cars) and motor alternator (motor cars).
The truck frames, bolsters and some parts will be shipped
separately from Japan. Major truck parts and components, which
will be purchased in the United States (for example, wheel and
axle assemblies, journal bearings, brake units, and so on), will
be later assembled to the truck frames. The completed trucks
will be shipped to the site of final car assembly and then the
car body will be mounted on the completed trucks.
The total value of the car body shell for the motor cars is
about 33 percent of the total value of the finished car and for
the trailer cars, the amount is about 35 percent.
The applicable subheading for the trailer car shells will be
8607.99.1000, Harmonized Tariff Schedule of the United States
(HTS), which provides for other parts for vehicles of heading
8605 or 8606 except brake regulators. The rate of duty will be
5.5 percent ad valorem.
The applicable subheading for the motor car shells will be
8607.99.5000, HTS, which provides for other parts of railway
rolling stock, other than for vehicles of heading 8605 or 8606.
The rate of duty will be 3.9 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