CLA-2-87:OT:RR:NC:N:2:206
Petro Yaroshenko
Hemisphere GNSS
8515 E Anderson Drive Scottsdale, AZ 85255
RE: The tariff classification of an automated steering wheel from China
Dear Mr. Yaroshenko:
In your letter dated March 4, 2024, you requested a tariff classification ruling.
The article under consideration has been identified as an Automated Steering Wheel (ESI2). The wheel is used in conjunction with the Hemisphere GNSS Outback Maverix guidance system. The ESI2 consists of a steering wheel and an electric motor (210 x 180 x 80mm). The motor's function is to rotate the steering wheel and is remotely controlled by the Edrive GPS unit with the Maverix smart antenna. The ESI2 wheel is designed to replace the existing steering wheel for the agricultural equipment. The wheel is controlled by the Edrive GPS module, which sends signals to the ESI2 to rotate the steering shaft based on preprogrammed coordinates. You state that the ES12 is specifically designed for agricultural applications. The Edrive console is pre-programmed with a terrain map that the agricultural vehicle is meant to cover.
You suggested to classify the ESI2 in subheading 9032.89.6085, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Automatic regulating or controlling instruments and apparatus; parts and accessories thereof: Other Instruments and apparatus: Other: Other: Other. We disagree.
Classification of merchandise under the HTSUS is made in accordance with the General Rules of Interpretation (GRI's) 1 through 6. The systematic detail of the HTSUS is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relevant section or chapter notes.
Note 7 to Chapter 90 states, Heading 9032 applies only to:
(a) Instruments and apparatus for automatically controlling the flow, level, pressure or other variables of liquids or gases, or for automatically controlling temperature, whether or not their operation depends on an electrical phenomenon which varies according to the factor to be automatically controlled, which are designed to bring this factor to, and maintain it at, a desired value, stabilized against disturbances, by constantly or periodically measuring its actual value; and
(b) Automatic regulators of electrical quantities, and instruments or apparatus for automatically controlling non-electrical quantities the operation of which depends on an electrical phenomenon varying according to the factor to be controlled, which are designed to bring this factor to, and maintain it at, a desired value, stabilized against disturbances, by constantly or periodically measuring its actual value.
None of the above apply to the article at issue. As a result, heading 9032, HTSUS, is not applicable.
In addition, HQ H252640, dated October 3, 2017, discussed an article similar to the ESI2 steering wheel and determined that it is correctly classified elsewhere in the tariff.
The applicable subheading for the ESI2 Automated Steering Wheel 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.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8708.94.1000, 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 subheading 8708.94.1000, 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 https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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.
In your submission, you also request that the ESI2 be considered for duty-free treatment as parts of agricultural or horticultural machinery under subheading 9817.00.50, HTSUS, which provides machinery, equipment, and implements to be used for agricultural or horticultural purposes.
We cannot make a determination on the 9817 provision as it is currently under review by the CIT/HQ. Section 177.7 of the Customs Regulations (19 C.F.R. 177.7) provides that rulings will not be issued in certain circumstances. Specifically, 177.7(b) reads, in pertinent part:
No ruling letter will be issued with respect to any issue which is pending before the United States Court of International Trade, the United States Court of Appeals for the Federal Circuit or any court of appeal therefrom.
As such, CBP will not issue a classification ruling with regard to your merchandise at this time. The classification determination may be impacted by court cases currently pending in the Court of International Trade. See Northern Tool & Equipment Co. v. United States, Ct. No. 22-00197.
If you wish, you may resubmit your request for a prospective ruling after the appropriate court cases have been resolved.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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