CLA-2-87:OT:RR:NC:N1:106
Kim J. Jenkins, Trade Compliance Manager
Arctic Cat, Inc.
601 Brooks Avenue South
Thief River Falls, MN 56701-2736
RE: The tariff classification of parts of Continuously Variable Transmission (CVT) from China.
Dear Ms. Jenkins,
In your letter dated May 2, 2014, you requested a tariff classification ruling.
The items under consideration have been identified as a drive clutch, a movable sheave, a stationary sheave, and a driven cam. In your request, you state that all four items are parts of a CVT used in a snowmobile.
The drive clutch, which is a primary clutch in the CVT is attached to the output shaft of the engine and turns according to the RPMs. It’s made up of a stationary sheave, a movable sheave, a spider, a helical spring, cam arms, rollers and a cover.
The movable drive sheave is made of aluminum and has a hole in the center with a plain shaft bearing. It is one half of a driven clutch assembly, which is the secondary clutch in the CVT.
The stationary sheave is made of aluminum and acts as the other half of the driven clutch.
The driven cam is made of aluminum and has machined slots in the side for the rollers on the stationary sheave to ride in.
You suggested that the drive clutch be classified as clutch in subheading 8708.93.6000 and the movable drive sheave, the stationary drive sheave and the drive cam be classified as parts of clutches in 8708.93.7500. You also suggested classification 8708.40.7580 for all five items as parts of gear boxes (transmissions).
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs) taken in order. GRI 1 provides that the classification is determined first in accordance with the terms of the headings and any relative section and chapter notes.
There is no definition of a transmission or a clutch provided for in the HTSUS or in the Explanatory Notes. When a tariff term is not defined by the HTSUS or its legislative history, ‘the term’s correct meaning is its common meaning.” (Mita Copystar Am. v. United States, 21 F.3d 1079, 1082 [Fed. Cir. 1994]). The common meaning of a term used in commerce is presumed to be the same as its commercial meaning. (Simod Am. Corp. v. United States, 872 F.2d 1572, 1576 [Fed. Cir. 1989]). To ascertain the common meaning of a term, a court may consult “dictionaries, scientific authorities, and other reliable information sources” and “lexicographic and other materials.” ( C.J. Tower & Sons v. United States, 673 F.2d 1268, 1271 [CCPA 1982]; Simod, 872 F.2d at 1576).
Webster’s Dictionary defines a transmission as “an assembly of parts including the speed changing gears and the propeller shaft by which the power is transmitted from an engine to a live axle; also: the speed changing gears in such assembly.”
“Auto Fundamentals” (by Martin W. Stockel, Martin T. Stockel, and Chris Johanson) defines clutches as “a mechanism designed to connect or disconnect power from the engine to the drive line.”
Although a CVT is a type of transmission, it does not incorporate gears as in a typical automatic or manual transmission. It consists of two clutches, a primary clutch and a secondary clutch connected by a drive belt.
Clutches are provided for in the Harmonized Tariff Schedule of the United States (HTSUS) in an “eo nominee” provision within subheading 8708.93. Eo nominee provisions take precedence over “parts of” provision.
The applicable subheading for the drive clutch will be 8708.93.6000, which provides for “Parts and accessories of the motor vehicles of Headings 8701 to 8705: Other parts and accessories: Clutches and parts thereof: For other vehicles: Clutches.” The rate of duty will be 2.5 percent.
The applicable subheading of the movable drive sheave, the stationary drive sheave and the drive cam will be 8708.93.7580, which provides for “Parts and accessories of the motor vehicles of Headings 8701 to 8705: Other parts and accessories: Clutches and parts thereof: For other vehicles: Other.” The rate of duty will be 2.5 percent. 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, please contact National Import Specialist Liana Alvarez at [email protected]
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division