CLA-2 OT:RR:NC:N1:102
Michael Hodgson
Li Gear
1292 Lakeview Dr
Romeoville, Illinois 60446
RE: The classification of a pinion shaft and bull gears from China
Mr. Hodgson:
In your letter dated May 6, 2022, you requested a ruling on the classification of a pinion shaft and bull gears. Technical information was provided.
The merchandise under consideration are parts of an assembly used in the power end of a hydraulic fracturing (frac) pump. It is said that in some instances the pinion shaft and right and left bull gears are imported together in the same quantity and the same shipments.
The pinion shaft is made of alloy steel and measures 84” in length, and 7.375” in diameter. The shaft is driven by an engine and the ends of the shaft are designed to mesh with the teeth of a left bull gear and a right bull gear.
The left and right bull gears are bolted to a crankshaft, and once driven by the pinion shaft, the gears rotate a crankshaft that moves plungers. The toothed gears are circular in shape and each gear measures 6.5” in width and 39.22” in diameter.
In your letter, you suggest the pinion shaft and gears are classified within subheading 8413.91.9085 Harmonized Tariff Schedule (HTSUS), which provides for Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof: Parts: Of pumps: Other: Of subheading 8413.50.00: Other. We disagree.
Classification of merchandise under the HTSUS is governed in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in order.
The “parts” provision of Note 2 to Section XVI states that subject to certain exclusions found in Note 1 to Section XVI, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: (a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective heading; (b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517; (c) All other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548. In applying Note 2 (a) to Section XVI, shafts and gears that transmit power are specifically provided for in heading 8483, HTSUS, and therefore, these items are precluded from being classified as a part of a pump under heading 8413, HTSUS.
It is noted that in some instances the pinion shaft and right and left bull gears are imported together in the same quantity and the same shipments. GRI 2(a) provides that 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. It shall also include a reference to that article complete or finished, which are entered unassembled or disassembled. In regard to single and multiple entry shipments, various scenarios are discussed in §141.58, Customs and Border Protection Regulations (“CR”). Points covered in §141.58, CR, include application procedures, the time limits for the arrival dates, and the requirements of a single entry for separately arriving portions of unassembled or disassembled entities. In particular, please note §141.58(h), which states that except as provided in paragraph (j) of this section, for purposes of section 484(j)(1), Tariff Act of 1930 (19 U.S.C. 1484(j)(1)), the merchandise comprising the separate portions of an entity covered by paragraph (b) of this section included on one entry will be classified as though imported together. Any spare parts accompanying a portion of an entity must be classified and entered separately. While §141.58(i) states that when all portions of an entity do not arrive at the port of entry within the time constraints of paragraphs (b)(4)(i) and (ii) of this section, as applicable, a separate entry and entry summary must be filed for each portion that has already arrived, and for each portion that subsequently will arrive on separate conveyances. The merchandise included on each separate entry shall be classified in its condition as imported. Each entry would reflect the quantities, values, classification, and rates of duty, as appropriate, of the various components conveyed in each shipment, and not the value or classification of the ordered single entity.
As mentioned, in some instances, the pinion shaft and right and left bull gears are imported together in the same quantity and the same shipments. Once imported, the shaft and gears are installed and connected to each other so that the teeth of the shaft mesh with the teeth of the gears to form a power transmitting system. Accordingly, the pinion shaft and gears are classified as an unassembled gearing system in accordance with GRI 2(a), similar to New York rulings E83890, dated July 30, 1999, and A83038, dated June 4, 1996.
Therefore, in accordance with GRI 2(a), the applicable subheading of the pinion shaft and right and left bull gears, when imported in the same quantities and the same shipments, will be 8483.90.5090, HTSUS, which provides for Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof, toothed wheels, chain sprockets and other transmission elements presented separately; parts: Parts of gearing, gear boxes and other speed changers: Other. The rate of duty is 2.5 percent ad valorem.
However, should the requirements of §141.58(h), CR, not be met, each component of the pump would be separately classified in its own respective heading, as outlined in §141.58(i).
Accordingly, in scenarios where the requirements of §141.58(i) are satisfied, the applicable subheading for the pinion shaft will be 8483.10.5000, HTSUS, which provides for Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plainshaft bearings; gears and gearing; ball or roller screws; gearboxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof; Transmission shafts (including camshafts and crankshafts) and cranks, Other transmission shafts and cranks. The rate of duty will be Free.
The applicable subheading for the left bull gear and the right bull gear will be 8483.90.5090, HTSUS, which provides for transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof: Toothed wheels, chain sprockets and other transmission elements presented separately; parts: Parts of gearing, gear boxes and other speed changers: Other. The rate of duty is 2.5 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings, 8483.10.5000 and 8483.90.5090, 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 8483.10.5000 and 8483.90.5090, HTSUS, listed above. 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. 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. Part 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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division