CLA-2-87:OT:RR:NC:N:206
Amine Sefrioui
Charles Happel, Inc
777 Sunrise Highway, Suite 204 Lynbrook, NY 11563
RE: The tariff classification of differential components from China
Dear Mr. Sefrioui:
In your letter dated September 2, 2024, you requested a tariff classification ruling on behalf of Detroit 9 Pty, Ltd.
The articles under consideration are Center Section Housing, Part Number 92001, Bare Case, Part Number026, and Pinion Support, Part Number 033, which are components of a Ford 9-inch differential. The Center Section Housing is made of steel. Its function is to house the axle tubes and suspension brackets; the ends of the housing hold the axles. You state that it is imported as an empty housing into the United States. It is assembled with the other components, (axle tubes, suspension brackets, housing ends, bearings, and brackets) which are sourced elsewhere by other vendors, in the United States. The Bare Case and the Pinion Support are made from cast nodular iron. Their function is to support the internal components, (pinion gear, bearings seals etc.) which are sourced elsewhere by other vendors. They are fitted together in the United States to the front of the housing to create a complete differential.
The applicable subheading for the Center Section Housing, which is designed to be used with passenger vehicles, will be 8708.50.8900, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Parts and accessories of the motor vehicles of headings 8701 to 8705: Drive-axles with differential, whether or not provided with other transmission components, and non-driving axles; parts thereof: Parts: For vehicles of heading 8703: Other: Other: Other. The rate of duty will be 2.5 percent ad valorem.
The applicable subheading for the Center Section Housing, which is designed to be used with pickup trucks, will be 8708.50.9900, HTSUS, which provides for Parts and accessories of the motor vehicles of headings 8701 to 8705: Drive-axles with differential, whether or not provided with other transmission components, and non-driving axles; parts thereof: Parts: For other vehicles: Other: Other: Other. The rate of duty will be 2.5 percent ad valorem.
The applicable subheading for the Bare Case and Pinion Support, which are designed to be used with passenger vehicles, will be 8708.50.8100, HTSUS, which provides for Parts and accessories of the motor vehicles of headings 8701 to 8705: Drive-axles with differential, whether or not provided with other transmission components, and non-driving axles; parts thereof: Parts: For vehicles of heading 8703: Other: Of cast iron. The rate of duty will be Free.
The applicable subheading for the Bare Case and Pinion Support, which are designed to be used with pickup trucks, will be 8708.50.9300, HTSUS, which provides for Parts and accessories of the motor vehicles of headings 8701 to 8705: Drive-axles with differential, whether or not provided with other transmission components, and non-driving axles; parts thereof: Parts: For other vehicles: Other: Of cast iron. The rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 8708.50.8900, 8708.50.9900, 8708.50.8100, and 8708.50.9300, 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 8708.50.8900, 8708.50.9900, 8708.50.8100, and 8708.50.9300, 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/.
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