CLA-2-87:OT:RR:NC:N1:106
Young-bin Oh
Hyundai Motor Company
231, Yangjae 2-dong
Seocho-gu, Seoul ASI/KR/KS013
South Korea
RE: The tariff classification of engine clutch piston and differential drive gear from South Korea
Dear Mr. Oh,
In your letter dated August 20, 2015, you requested a tariff classification ruling.
The first item being considered is a Piston–Engine Clutch (Item Code 455733D000), which is a part of the over drive clutch of an automatic transmission. It is constructed of steel and measures approximately 140 millimeters (mm) in diameter, and is used in a passenger vehicle. When the gear is shifted from the third to sixth gears, the piston transmits the torque of the input shaft to the overdrive planetary gear carrier and the low reverse annulus gear.
The second item under consideration is a Gear–Differential Drive (Item Code 4583226000). It is constructed of steel and measures about 180 millimeters (mm) in diameter. It is used in an automatic transmission of a passenger vehicle. The gear is mounted onto the differential gear and assembled between the output gear and differential assembly and transmits power generated from the engine to the axle and wheels.
You suggested that the Engine Clutch Piston and the Differential Drive Gear be classified in subheading 8708.40, Harmonized Tariff Schedule of the United States (HTSUS) which provided for “Parts and accessories of the motor vehicles of heading 8701 to 8705: Gear boxes and parts thereof…” This office disagrees with the proposed classification.
General Rule of Interpretation, HTSUS, (GRI) 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6. GRI 3(a) states in part that when goods are, prima facie, classifiable under two or more headings the heading which provides the most specific description shall be preferred to headings providing a more general description. GRI 6 states, in part, that goods are classifiable in the subheadings of a heading according to the terms of those subheadings and any related subheading notes and, by appropriate substitution of terms, to GRIs 1 through 5, on the understanding that only subheadings at the same level are comparable. A clutch is a mechanism that engages and disengages the engine’s flywheel from the drive shaft as gears shift through the transmission. When used with a manual transmission, a clutch assembly is a separate unit located between the rear of the engine block and the transmission. Automatic transmissions, however, utilize a type of fluid coupling called a torque converter to couple the engine and the gearbox incorporated in the transmission. The gearbox contains a set of planetary gears, with clutches and brake pads for engaging the desired gears.
Articles that disengage the engine automatically as the gears change perform the function of a clutch and are within the common and commercial meaning of that term. In addition, for purposes of subheading 8708.93 the provision for clutches describes a commodity eo nomine, by name. Normally, an “eo nomine” designation, without limitation, or a shown contrary legislative intent or judicial decision will include all forms of the named article. Therefore, when comparing subheadings within heading 8708, GRI 3(a), HTSUS, applied at the subheading level through GRI 6, authorizes classification in the subheading providing the most specific description. Thus, in classifying the engine clutch piston as parts of clutch assemblies for automatic transmissions, the subheading description for clutches and parts thereof, other, is more specific than parts of gearboxes.
The McGraw-Hill Encyclopedia of Science & Technology (1992) provides the following definitions: Differential. In drive axles, the differential is the gear assembly between axle shafts that permits one wheel to rotate at a speed different from that of the other (if necessary), while transmitting torque from the final-drive ring gear to the axle shafts.
In HQ 960950 dated January 16, 1998, we stated that "Customs [and Border Protection] believes that the power train of a motor vehicle extends from the engine through the transmission and differential through the power axles." Therefore, classification of the differential drive gear as parts of power train is more specific than parts of transmissions.
The applicable classification subheading for the Piston–Engine Clutch (Item Code 455733D000) will be 8708.93.7500, HTSUS, 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: Other.” The general rate of duty will be 2.5 percent.
The applicable classification subheading for the Gear–Differential Drive (Item Code 4583226000) will be 8708.99.6890, HTSUS, which provides for "Parts and accessories of motor vehicles of headings 8701 to 8705: Other parts and accessories: Other: Other: Other: Other: Other parts for power trains: Other." The general 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 Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the 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
Director
National Commodity Specialist Division