CLA-2-84:OT:RR:NC:N2:206
Michelle M. Klein
MTD Consumer Group Inc.
5903 Grafton Road
Valley City, OH 44280
RE: The tariff classification of lawn mower engines from China
Dear Ms. Klein:
In your letter dated July 3, 2019, you requested a tariff classification ruling and application of duty-free provision in subheading 9817.00.60, Harmonized Tariff Schedule of the United States (HTSUS).
The items under review are fifty two (52) models of lawn mower engines of a cylinder capacity ranging from 79 cubic centimeters (cc) to 679 (cc). You describe the products as spark ignited gasoline engines that are exclusively used on walk behind, riding and zero-turn riding mowers, which fall under subheading 8433.11.00, HTSUS, which provides for mowers for lawns, parks or sports grounds, powered, with the cutting devise rotating in a horizontal plane and 8433.19.00, HTSUS, as other mowers for lawns, parks or sports grounds.
The applicable subheading for the lawn mower engines of power output of less than 4,476W will be 8407.90.1010, HTSUS, which provides for “Spark-ignition reciprocating or rotary internal combustion piston engines: Other Engines: To be installed in agricultural or horticultural machinery or equipment: not exceeding 37.3kW: Less than 4,476W.” The rate of duty will be Free.
The applicable subheading for the lawn mower engines of power output of more than 4,476W, but less than 37.3kW will be 8407.90.1020, HTSUS, which provides for “Spark-ignition reciprocating or rotary internal combustion piston engines: Other Engines: To be installed in agricultural or horticultural machinery or equipment: not exceeding 37.3kW: Other.” The rate of duty will be Free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheadings 8407.90.1010 and 8407.90.1020, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. If the merchandise is from China, you must report the Chapter 99 subheading, i.e., 9903.88.02 in addition to the corresponding subheading 8407.90.1010 and 8407.90.1020, HTSUS, listed above at the time of importation.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
In your submission, you also request that lawn mower engines be considered for duty-free treatment as parts of agricultural or horticultural machinery under subheading 9817.00.60, HTSUS, which provides for parts of machinery, equipment and implements to be used for agricultural or horticultural purposes.
Subheading 9817.00.60, HTSUS, is an actual use provision. To fall within a special classification, a three-part test must be met. First, the subject merchandise must not be excluded from the heading under Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2, HTSUS. Secondly, the terms of the headings must be met in accordance with GRI 1, which provides that classification is determined according to the terms of the headings and any relative section or chapter notes. Thirdly, the article must comply with the actual use regulations under Section 10.131 through 10.139, Customs Regulations (19 CFR 10.131 through 10.139).
In HQ 961431, dated December 1, 1998, similar engines for certain agricultural machines were determined to be eligible for duty-free treatment under subheading 9817.00.60. Although HQ 961431 was later revoked by HQ 965354, dated February 14, 2002, for failure to file a declaration of intended use under an actual use provision with the consumption entry, the initial determination for the duty-free eligibility of such engines remained unchanged. The instant engines are designed to be exclusively used with lawn mowers; consequently, they will be eligible for duty-free treatment under subheading 9817.00.60, provided the actual use requirements of Sections 10.131 through 10.139 of the Customs Regulations are satisfied.
Please note that the additional duties imposed by headings 9903.88.01, 9903.88.02, 9903.88.03, and 9903.88.04 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80. For headings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable heading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80.
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 https://hts.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