CLA-2-84:OT:RR:NC:N2:206
Tanner Nordlund
Tanner Nordlund
42861 110th Ave
Holdingford, MI 56340
RE: The tariff classification of an engine parts assembly from India
Dear Mr. Nordlund:
In your letter dated September 26, 2022, you requested a tariff classification ruling. Pictures and other descriptive literature were submitted with your request.
The item under consideration has been identified as an Engine Parts Assembly for a compression ignition reciprocating internal combustion piston engine, used in agricultural water pumping, and personal/agricultural auxiliary power applications. You state that at the time of importation these assemblies would consist of a crankcase, a cylinder/cylinder liner, a cylinder head, a crankshaft, a camshaft, rods, a piston, a flywheel, a valve train, a valve cover, an injection pump, a fuel tank, an air filtration, and an exhaust system. Components to be added in the United States include a starter, a starter battery, a water pump or generator, a mounting base as this is a stationary engine, and a cooling system.
You suggested classifying this assembly in its imported condition in heading 8409, Harmonized Tariff Schedule of the United States (HTSUS) as parts of compression ignition engines and compared your product with the assemblies described in NY Rulings N309222, dated February 18, 2020, and N302189, dated February 8, 2019.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied. In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. ENs, though not dispositive or legally binding, provide commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. Customs believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
GRI 2(a) provides that goods imported in an unassembled condition are to be classified as the assembled article. The ENs to GRI 2(a) direct us to the General ENs to Section XVI, HTSUS, which provide, in pertinent part, as follows: (IV) INCOMPLETE MACHINES (See General Interpretative Rule 2 (a)) “Throughout the Section, any reference to a machine or apparatus covers not only the complete machine, but also an incomplete machine (i.e., an assembly of parts so far advanced that it already has the main essential features of the complete machine). Thus, a machine lacking only a flywheel, a bed plate, calender rolls, tool holders, etc., is classified in the same heading as the machine, and not in any separate heading providing for parts. Similarly, a machine or apparatus normally incorporating an electric motor (e.g., electro-mechanical hand tools of heading 85.08) is classified in the same heading as the corresponding complete machine even if presented without that motor.”
Both assemblies in the aforementioned NY rulings lacked not only the starter and starter batteries, but also other essential components to allow the engine to be fully operational. As a result, the assemblies in their imported condition lacked the essential character of a complete engine. In the instant case, the engine is merely complete, except for the starter and starter battery, the water pump or generator, and the cooling system. The mounting base is not an essential component. As a result, the engine parts assembly satisfies the requirements set forth in ENs to GRI 2(a) and General ENs to Section XVI (IV) Incomplete Machines.
The applicable subheading for the Engine Parts Assembly will be 8408.90.1040, HTSUS, which provides for “Compression-ignition internal combustion piston engines (diesel or semi-diesel engines): Other: To be installed in agricultural or horticultural machine or equipment: Not exceeding 37.3 kW.” The general duty rate will be Free.
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