CLA-2-84:OT:RR:NC:N1:118
Mr. Mathew Bock
Middleton Shrull & Bock
100 Sylvan Road, Suite 660
Woburn, MA 01801
RE: The tariff classification of spindle shafts and spindle assemblies for lawn mowers from China.
Dear Mr. Bock:
In your letter dated January 9, 2020, on behalf of your client, Lembak Global Sourcing LLC, you requested a ruling on tariff classification and the applicability of subheading 9817.00.60, Harmonized Tariff Schedule of the United States (HTSUS). The merchandise under consideration are described as spindle shafts and spindle assemblies, which are designed exclusively for incorporation into commercial and residential lawn mowers.
Your client is proposing to import two models of spindle assemblies, each with a corresponding spindle shaft. You also state that in some cases, the spindle shafts will be imported independently. The major components of the spindle assemblies are: (1) a spindle shaft; (2) a bearing spacer; (3) a spindle housing; (4) a dust cap; and (5) a top spacer. Once fully assembled, the spindle assemblies will be fitted through a hole in the cutter deck of the lawn mower and bolted thereto, with the cutter blade being mounted to the bottom of the spindle assembly. The spindle shaft transmits rotational power from the cutter deck pulleys to the lawn mower cutter blades.
The applicable subheading for the spindle assemblies and the spindle shafts, when imported independently, will be subheading 8433.90.1090, HTSUS, which provides for harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading 8437; parts thereof: parts: of mowers for lawns, parks or sports grounds: other. The general rate of duty will be free.
In your submission, you also request that the spindle shafts and spindle assemblies be considered for duty-free treatment as agricultural or horticultural machinery under subheading 9817.00.60, HTSUS, which provides for parts to be used in articles of heading 8433, HTSUS. 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 C.F.R. §10.131 through §10.139).
U.S. Note 2(t) to Subchapter XVII of Chapter 98, excludes “articles” of heading 8433, HTSUS, but does not exclude “parts” of articles of such heading (see H264768, dated September 7, 2017). As the subject spindle shafts and spindle assemblies are considered parts of an article of heading 8433, HTSUS, the exclusion in Note 2(t) does not apply. Accordingly, the goods satisfy the first part of the test. The spindle shafts and spindle assemblies also satisfy the terms of subheading 9817.00.60, HTSUS, which has two requirements: the article under consideration must 1) qualify as a part; and 2) be used with an article of headings 8432, 8433, 8434, or 8436. Regarding the second requirement of subheading 9817.00.60, HTSUS, lawn mowers are provided for in heading 8433, HTSUS, and therefore the spindle shafts and spindle assemblies are parts to be used in an article provided for in heading 8433, HTSUS. With respect to the first requirement of the subheading, a part must be either: an integral, constituent, or component part, without which the article to which it is to be joined could not function as such article. In this case, the spindle shafts and spindle assemblies are stated to be for use as integral parts of the lawn mowers without which the lawn mowers could not function properly.
Therefore, provided the spindle shafts and spindle assemblies will be actually used in lawn mowers classified in heading 8433, and the documentary requirements of 19 C.F.R. §10.131 through §10.139 can be satisfied, they may qualify for duty-free treatment under 9817.00.60. We note in particular that the importer is responsible for satisfying the documentary requirements, and the spindle shafts and spindle assemblies must be intended for such use at the time of entry and proof thereof must be furnished within three years of the date of entry.
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 the 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, contact National Import Specialist Anthony E. Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division