CLA-2-85:OT:RR:NC:N2:220
Brian Smith
Johnson Electric North America, Inc
47660 Halyard Dr
Plymouth, MI 48170
RE: The tariff classification of the Wheel Drive System from China
Dear Mr. Smith.:
In your letter dated April 25, 2022, you requested a tariff classification ruling.
The merchandise under consideration is referred to as the Wheel Drive System, which is described as a DC electric motor having an internal printed circuit board assembly drive controller, an internal mechanical braking mechanism, and a gearbox subassembly. The Wheel Drive System is said to receive 38 VDC and has a maximum output of 148.22 Watts.
In your request, you suggest the Wheel Drive System is correctly classified under subheading 8708.99.5800, Harmonized Tariff Schedule of the United States (HTSUS), which provides for double flange wheel hub bearings suitable for use in motor vehicles. We disagree.
Classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification is determined first in accordance with the terms of the headings of the tariff and any relative section or chapter notes. Legal note 2 (f) to Section XVII excludes electrical machinery or equipment from being classified in this section.
Additionally, while not dispositive, the Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs. ENs 85.01 state in pertinent part, “Motors remain classified here even when they are equipped with pulleys, with gears or gear boxes…” The motor under consideration here consists of an electric motor and an attached gear box. Therefore, classification of the Wheel Drive System at issue in heading 8708, HTSUS is precluded.
The applicable subheading for the Wheel Drive System will be 8501.31.4000, HTSUS, which provides for "Electric motors…: Other DC motors…: Of an output not exceeding 750W: Motors: Exceeding 74.6 W but not exceeding 735 W." The general rate of duty will be 4%.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8501.31.4000 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., 9903.88.02, in addition to subheading 8501.31.4000, 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, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at the following addresses:
https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions https://www.cbp.gov/trade/remedies/301-certain-products-china
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 Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division