CLA-2-84:OT:RR:E:NC:N1:106
Ms. Sandra Tumbarello
Cummins, Inc.
500 Jackson St.
M/C 60211
Columbus, IN 47201
RE: The tariff classification of rebuilt diesel engines from Mexico.
Dear Ms. Tumbarello:
In your letter dated February 11, 2009 you requested a tariff classification ruling. Descriptive literature was included.
According to your request, Cummins is in the practice of acquiring used engines in the United States. These compression ignition engines are designed for use in road tractors. The engines are shipped to Mexico where they are disassembled. The parts, if found to be suitable for reuse, are said to be cleaned, resurfaced and repaired. If the part is not suitable for reuse, you state that parts are replaced so that the rebuilt engine at the time of importation into the US is composed of both new and rebuilt parts, not necessarily from the same used engine that was shipped to Mexico.
You suggest that the rebuilt diesel engines would be correctly allowed the use of temporary legislation as used compression-ignition internal combustion piston engines to be installed in vehicles of subheading 8701.20 or heading 8704 (provided for in subheading 8408.20.20) with duty suspension under 9902.25.31 Harmonized Tariff Schedule of the United States (HTSUS). This is not correct. The engines to which this legislation applies are imported for the purpose of remanufacturing them. The engines that you are importing have been remanufactured in Mexico prior to importation, and as you have noted in your request “are ready for installation upon importation”.
The applicable subheading for the rebuilt diesel engines will be 8408.20.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for compression-ignition internal combustion piston engines: …for the propulsion of vehicles of chapter 87: to be installed in vehicles of subheading 8701.20. The rate of duty will be 2.5% ad valorem.
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 http://www.usitc.gov/tata/hts/.
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, contact National Import Specialist Mark Palasek at (646) 733-3013.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division