CLA-2-87:OT:RR:NC:N2:206
Orville R. McDonner
J-Mac International, LLC
23 Timberwood Drive
Simpsonville, KY 40067
RE: The tariff classification of a steering gearbox and universal joint from China
Dear Mr. McDonner:
In your letter, June 30, 2021, you requested a tariff classification ruling and application of the duty-free provision in subheading 9817.00.60, Harmonized Tariff Schedule of the United States (HTSUS). Pictures and descriptive literature were provided with your request.
The items under consideration are a Steering Gearbox and Universal Joint, which are designed exclusively for incorporation into agricultural tractors. The steering gearbox is used for steering the front wheels of the agricultural tractor. The universal joint attaches to the input shaft of the steering gearbox and the steering shaft attaches to the steering wheel of the agricultural tractor.
You suggested classifying the steering gearbox and universal joint as “parts” of lawn mowers within subheading 8433.90.1090, HTSUS, which provides for harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning; parts: of mowers for lawns, parks or sports grounds, other.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI’s). 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.
It states in your ruling request that the items are essential parts of an agricultural tractor. Lawn mowers are included within Section XVI and agricultural tractors are specifically provided for in Section XVII. Section XVI, Note 1(l), HTSUS, states that articles of Section XVII are excluded from Section XVI. Inasmuch as the steering gearbox and universal joint are parts of agricultural tractors classified under heading 8701, HTSUS, these two parts are precluded from classification under heading 8433, HTSUS, as per Note (1) (l) to Section XVI.
The applicable subheading for the Steering Gearbox will be 8708.94.1000, HTSUS, which provides for “Parts and accessories of the motor vehicles of heading 8701 to 8705: Other parts and accessories: Steering wheels, steering columns and steering boxes; parts thereof: Steering wheels, steering columns, and steering boxes: For tractors suitable for agricultural use.” The general rate of duty will be Free.
The applicable subheading for the Universal Joint will be 8708.94.6000, HTSUS, which provides for “Parts and accessories of the motor vehicles of heading 8701 to 8705: Other parts and accessories: Steering wheels, steering columns and steering boxes; parts thereof: Parts: For tractors suitable for agricultural use.” The general rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 8708.94.1000 and 8708.94.6000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheadings 8708.94.1000 and 8708.94.6000, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
In your submission, you also request that the steering gearbox and universal joint 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 provided for in headings 8432 and 8433, HTSUS.
As discussed above, the items under consideration are parts of the tractor classifiable in heading 8701, HTSUS. As a result, the terms of subheading 9817.00.60 are not met. In addition, to fall within subheadings 9817.00.50 or 9817.00.60, the subject merchandise must not be excluded from the heading under Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2, HTSUS.
U.S. Note 2 to Section XXII, Chapter 98, Subchapter XVII states, “The provisions of headings 9817.00.50 and 9817.00.60 do not apply to: (w) articles provided for in chapter 87 (except bicycles and other cycles, not motorized, and parts thereof), but interchangeable agricultural and horticultural implements are classifiable in subheading 9817.00.50 even if mounted at the time of importation on a tractor provided for in chapter 87.” Since the steering gearbox and universal joint are not agricultural or horticultural implements, classification of these items in subheadings 9817.00.50 or 9817.00.60 is precluded.
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