CLA-2-87:OT:RR:NC:N1:106
Ji Hae Jun
Samjong KPMG
27F, Gangnam Finance Center, 152, Teheran-ro
Gangnam-gu, Seoul, 06236
South Korea
RE: The tariff classification of a sub-frame from an unspecified country
Dear Ji Hae Jun,
In your letter dated March 20, 2017, you requested a tariff classification ruling. Pictures and other illustrative diagrams were submitted with your request.
The item under review is a Subframe (Part Number E4ESFK100062), which is a sub frame module attached to the front part of an electric vehicle. It is composed of an inverter, a motor, and a reducer with a cross-member as the base. You state in your request that the Subframe generates and transmits power necessary for the motor vehicle through its components such as the motor, inverter, and reducer. Furthermore, it supports the weight of the motor vehicle and absorbs shocks to protect passengers in case of a forward vehicle collision.
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) represent the official interpretation of the Harmonized System at the international level (for the 4 digit headings and the 6 digit subheadings) and facilitate classification under the HTSUSA by offering guidance in understanding the scope of the headings and GRI. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading of the HTSUSA, and are generally indicative of the proper interpretation of these headings.
You suggest classification of the Platform in subheading 8708.99, HTSUS, which provides for parts and accessories to motor vehicles. This office disagrees with your proposed classification.
The ENs to heading 8708 (A) state that the following parts and accessories include: Assembled motor vehicle chassis frames (whether or not fitted with wheels but without engines) and parts thereof. The sub-frame under review is fitted with an engine, and as such is precluded from classification in heading 8708.
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…” GRI 2 (a) extends the scope of any heading that refers to a particular article to cover not only the complete article but also that article incomplete or unfinished, provided that, as presented, it has the “essential character” (which is discussed below) of the complete or finished article.
Heading 8706, HTSUS, provides for chassis fitted with engines. There is no definition of a chassis 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.)
Miriam Webster’s Dictionary defines chassis as “the supporting frame of a structure” or “the frame and working parts”. Although the Subframe is not a complete chassis, it does provide substantial support to the weight of the vehicle. Therefore, pursuant to GRI 2(a), the Subframe has the essential character of the chassis fitted with engine, and other listed components.
The applicable subheading for the Subframe will be 8706.00.1520, HTSUS, which provides for “Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705: For vehicles of heading 8703: For passenger automobiles.” The general rate of duty will be 2.5%.
The applicable classification subheading 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/current.
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,
Steven A. Mack
Director
National Commodity Specialist Division