CLA-2-87:OT:RR:NC:N2:206
Jonathan Wiens
PricewaterhouseCoopers LLP
1420 Fifth Avenue, Suite 2800 Seattle, WA 98101
RE: The tariff classification of automotive components from Mexico and South Korea
Dear Mr. Wiens:
In your letter, dated July 11, 2023, you requested a tariff classification ruling on behalf of your client, HL Mando America Corporation. Pictures and other descriptive literature were submitted with your request.
The articles under consideration are a Seat Spring (Part Number: SK414A3501), a Gearbox Housing (Part Number: GM412N5000), an Output Shaft (Part Number: GM426N4000), a Worm Wheel (Part Number: GM441N5000), and a Dust Cap Assembly (Part Number: GP371A2300), which are all used in automotive applications.
The spring seat is designed to be utilized in the manufacture of a front strut assembly. The function of the spring seat is to support the coil spring and prevent it from breaking away from the front strut assembly by being welded to the outer cylinder of the base shell which works with the shock absorber to support the vehicle load. The coil spring, which is made by winding a round rod, acts in absorbing the impact of the car body. The spring seat is made of SAPH440 steel, which is a material grade and designation defined in JIS G 3113 standard.
The gear box housing is designed to be utilized in the manufacture of a column-assist type electric power steering (C-EPS) assembly. The function of the part in the finished product is to support and protect the worm and worm wheel, which are parts of the reducer. The gear box housing is made of A380F aluminum alloy.
The output shaft is designed to be utilized in the manufacture of a C-EPS assembly. The function of the part in the finished product is that it is a rotating shaft into which the reducer worm wheel is press-fitted. When the worm wheel rotates, the steering force is transmitted to the shaft system. The output shaft is made of S45C (or SWCH45K), which are carbon steel.
The worm wheel is designed to be utilized in the manufacture of a C-EPS assembly. The function of the part in the finished product is that of a reducer function through worm and toothing, working to drive rotation by receiving motor rotational force from the wheel. When the worm wheel rotates, the output shaft, which is the central axis, rotates to transmit assist steering force. The worm wheel is made of PA66 polyamide with 6% glass fiber mold, S45C carbon steel hub, and PA66 polyamide with 45% glass fiber.
The dust cap assembly will be used in the manufacture of a rack and pinion gear assembly, which is the final product. The function of the dust cap assembly in the finished product is for connecting the dash panel of the vehicle with the steering gear assembly and ensuring watertight function. The dust cap assembly works by fixing the contact and pressing of the dust packaging part on the vehicle's dash panel. It is press-fit and assembled to the rack housing. The dust cap assembly is made of Polypropylene (PP) plastic dust cap, Ethylene Propylene Diene Monomer (EPDM) rubber dust packing (this is the oval-shaped piece that surrounds the lower dash panel), and an EPDM rubber sponge, which is the internal, circular piece that connects to the steering rack housing assembly.
Consideration was given to classifying the spring seat in heading 8302, Harmonized Tariff Schedule of the United States (HTSUS), as base metal mountings and fittings, as you suggested. The spring seat appears to be a structural component within the strut and does not function to mount the strut to the vehicle. Therefore, it is not classified in heading 8302, HTSUS, as this heading excludes structural parts of vehicles.
You also suggested to classify the spring seat, output shaft, and the worm wheel in heading 7326, HTSUS, as other articles of of iron or steel, and the gear box housing in heading 7616, HTSUS, as other articles of aluminum. However, the spring seat, output shaft, worm gear, and the gear box housing are recognizable automotive components. Thus, they cannot be classified in the residual or basket provision, which covers a wide range of iron or steel articles in heading 7326, HTSUS, and aluminum articles in heading 7616, HTSUS, that are not more specifically provided for elsewhere in the HTSUS. As a result, classification of these items in heading 7326, HTSUS, and heading 7616, HTSUS, is precluded.
Furthermore, you proposed classifying the gear box housing, output shaft, and the worm wheel in heading 8483, 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). However, classification of these articles in heading 8483, HTSUS, is also precluded by application of Section Notes 1(l) to Section XVI and 2(e) to Section XVII. 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. Section Note 1(l) to Section XVI excludes articles of Section XVII, and Section Note 2(e) to Section XVII excludes articles of Chapter 84 “…provided they constitute integral parts of engines or motors, articles of heading 8483.” The gear box housing, output shaft, and the worm wheel are automotive components of Section XVII and are not a part of an engine or motor.
With regard to classifying the gear box housing in subheading 8708.40, HTSUS, as you mentioned in your letter, this office also disagrees. Subheading 8708.40, HTSUS normally describes speed changing equipment for vehicles, such as transmissions and parts thereof. Based on the location of the gear box housing and its function, the item does not meet the terms of subheading 8708.40, HTSUS.
Lastly, you suggested classifying the dust cap assembly in heading 3923, HTSUS, as plastic caps, and 4016, HTSUS, as rubber articles. This product is referred to as a dust cap and one of its functions is to keep debris from entering the dashboard and steering gear housing. However, it is noted that this product is also for connecting the dash panel with the steering gear assembly. Therefore, it does not appear to be a general use cap for merely closing or sealing out debris. It also functions as a connector and is specifically engineered to fit into a specific rack and pinion gear assembly. It is also not wholly made of rubber. As a result, neither of the headings apply to the dust cap assembly.
The applicable subheading for the Seat Spring (Part Number: SK414A3501) will be 8708.80.6590, HTSUS, which provides for "Parts and accessories of the motor vehicles of heading 8701 to 8705: Other parts and accessories: Suspension systems and parts thereof (including shock absorbers): Parts: Other: Other: Other.” The general rate of duty will be 2.5% ad valorem.
The applicable subheading for the Gearbox Housing (Part Number: GM412N5000), the Output Shaft (Part Number: GM426N4000), the Worm Wheel (Part Number: GM441N5000), and the Dust Cap Assembly (Part Number: GP371A2300) will be 8708.94.7550, 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 other vehicles: Other: Other.” The general rate of duty will be 2.5 percent ad valorem.
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 at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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