CLA-2-84:OT:RR:NC:N1:106
Steven C. Liu
Licensed Customs Broker
Pacific Century Customs Service, Inc.
3936 Columbia Street
Torrance, CA 90503-3806
RE: The tariff classification of a Long Block from China
Dear Mr. Liu,
In your letter dated January 27, 2016, you requested a tariff classification ruling on behalf of Weichai America Corporation of Rolling Meadows, Illinois.
The item under consideration has been identified as a Long Block engine sub-assembly that consists of an engine block, a crankshaft, a cylinder head, a camshaft, a valve train, an oil pan, valve covers, and manifolds for a spark ignition reciprocating internal combustion piston engine. The in-line long block is used in off-road applications for 4, 6, or 12 cylinder engines with a total displacement range of 6 liters to 32 liters, and individual cylinder displacement ranges from 1040 (cubic centimeters) cc to 2650 cc. Once fully assembled, the engines can generate power in the range of 250 kilowatts (kW) to 600 kW.
You state that the long block will be used in oil and gas field pumping applications, as well as agricultural irrigation pumping and in electric power generation. The engines run on natural gas or liquid propane.
You suggested the long block engine sub-assembly be classified under subheading 8407.90.9010, Harmonized Tariff Schedule of the United States (HTSUS),which provides for “Spark-ignition reciprocating or rotary internal combustion piston engines: Other engines: Other: Gas (natural or LP) engines.” This office disagrees with your classification.
Classification of merchandise under the 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.
GRI 2(a) states, “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.”
The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs.
The ENs to heading 8407 state, “The characteristic feature of these engines is that they are equipped with sparking plugs fitted into the cylinder head and with electrical devices (such as magnetos, coils and contact breakers) synchronised with the motor, for supplying high tension current.” (Emphasis added). The long block engine sub-assembly under consideration lacks these main characteristics. Therefore, classification under subheading 8407.99.9010 pursuant GRI 2(a) is precluded.
In addition, GRI 3(b) states, “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.”
This office has determined that the essential character of the long block subassembly is the assembled engine block and the manifolds for a spark ignition reciprocating internal combustion piston engine, classifiable in heading 8409, HTSUS.
The applicable subheading of the Long Block engine sub-assembly will be 8409.91.9990, HTSUS, which provides for “Parts suitable for use solely or principally with the engines of heading 8407 or 8408: Other: Suitable for use solely or principally with spark-ignition internal combustion piston engines (including rotary engines): Other: Other: Other.” The general rate of duty will be 2.5%.
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,
Deborah Marinucci
Acting Director
National Commodity Specialist Division