CLA-2-87:OT:RR:NC:N1:101
Shannon P. Fox, Director-Managed Services
Sandler & Travis Trade Advisory Services, Inc.
36555 Corporate Drive, Suite 400
Farmington Hills, MI 48331-3567
RE: The tariff classification and country of origin of used vehicle transmissions
Dear Ms. Fox,
In your letter dated August 25, 2009, you requested a country of origin and classification ruling on behalf of your client, Allison Transmission, Inc. of Indianapolis, Indiana.
The items under consideration have been identified as used ATI OEM and ATI RETRAN™ brand transmissions.
Allison Transmission, Inc. (ATI) is an Original Equipment Manufacturer (OEM) of heavy-duty transmissions used in the production of trucks, buses, construction equipment, etc. in the U.S. and abroad; the OEM transmissions are produced at ATI’s plant located in Indianapolis, Indiana.
Damaged or worn transmissions are returned to ATI from customers worldwide. These transmissions (which you indicate in your ruling request might include transmissions that have already previously been rebuilt) are then remanufactured and sold as aftermarket or service transmissions to manufacturers. When ATI receives a returned transmission, it is forwarded to a third-party U.S. manufacturer, contracted by ATI, who disassembles and builds the ATI RETRAN™ brand of transmission.
You state in your ruling request that, upon receipt of the damaged or worn transmissions, the following work is performed:
Complete disassembly, cleaning, inspection, and machining to specs of component parts
Old Country of Origin and serial number plates are removed
Parts deemed beyond repair are discarded and additional inventory required is supplied
Remaining individual parts are sorted and commingled with same or similar parts from other returned ATI RETRAN™ transmissions
Parts are pulled from inventory and assembled into the remanufactured transmissions, under the ATI RETRAN™ name, which are sold in the U.S. and abroad
In our phone conversation on July 8, 2009, you indicated that, as part of the warranty, a new serial number and country of origin plate is placed on the ATI RETRAN™ transmission. You provided a model/serial number matrix which allows the identifying plates placed on the remanufactured transmission to be deciphered.
Section 134.1(b) [Definitions, Country of origin] of PART 134 [COUNTRY OF ORIGIN MARKING] of Title 19 [Customs Duties] of the Code of Federal Regulations (19 CFR §134.1) states “ ‘Country of origin’ means the country of manufacture, production … of any article … entering the United States.” Since both the original manufacture of the ATI OEM transmissions and the subsequent production of the used ATI OEM and RETRAN™ transmissions was and is performed in the United States, the U.S. is the country of origin of the transmissions.
The applicable classification subheading for the used ATI OEM and RETRAN™ transmissions used in road tractors for semi-trailers, vehicles for the transport of ten or more persons (including the driver) or vehicles principally designed for the transport of goods will be 8708.40.1150, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts … of … motor vehicles … : Gear boxes … : Gear boxes: For vehicles … : Other.” The rate of duty will be
2.5%.
An additional applicable classification subheading for the used ATI OEM and RETRAN™ transmissions used in road tractors for semi-trailers and vehicles principally designed for the transport of goods, imported prior to 12/31/09, will be 9902.25.32 which provides for “Used gear boxes for [Road tractors for semi-trailers and vehicles principally designed for the transport of goods].” The rate of duty will be Free.
The applicable classification subheading for the used ATI OEM and RETRAN™ transmissions used in any type of vehicle other than road tractors for semi-trailers, tractors suitable for agricultural use, vehicles designed for the transport of ten or more persons (including the driver), or vehicles principally designed for the transport of goods will be 8708.40.5000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts … of … motor vehicles … : Gear boxes … : Gear boxes: For other vehicles.” The rate of duty will be 2.5%.
Classification subheading 9801.00.1067, HTSUS, provides for the free entry of “Products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad: Other: Articles provided for in Chapter 87: Articles provided for in heading (sic) … 8708.”
Based on the information provided in your request, if the documentary requirements of Section 10.1, Customs Regulations (19 CFR §10.1), are met, the used ATI OEM and RETRAN™ transmissions, originally manufactured and re-manufactured in the U.S., are eligible for the duty free provision of subheading 9801.00.1067, HTSUS.
Duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the World Wide Web at http://ww.usitc.gov /tata/hts/.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in 19 CFR §177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated therein, either directly, by reference, or by implication, is accurate and complete in every material respect.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR §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 Richard Laman at 646-733-3017.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division