CLA-2-87:OT:RR:NC:N2:206
David Olave
Sandler, Travis & Rosenberg P.A.
1300 Pennsylvania Ave. NW. Washington, DC 20004
RE: The tariff classification of automotive brake components from multiple countries
Dear Mr. Olave:
In your letter dated December 9, 2024, you requested a tariff classification ruling on behalf of your client, Power Stop, LLC.
The articles under consideration are four scenarios of automotive brake components combinations. The first combination, Scenario 1, consists of two aluminum rotos (JBR1576XPR) and two calipers (L6992 and L6993) from China, and a box containing brake pads (17-1212) form Mexico, clippings (HDWH1212K), which are hardware components, from China, and lubricant (PSLUBE) from the United States. The second combination, Scenario 2, consists of two aluminum rotors (AR8145) from Vietnam, two calipers (L4766C and L4767C) from China, and a box containing brake pads (17-1650), clippings (HDWH1650K) from China, and lubricant (PSLUBE) from the Unites States. The third combination, Scenario 3, consists of two aluminum rotors (AR8645XPR) from China, two calipers (L4764 and L4765) from Taiwan with the brake pads (17-834) from India mounted on the calipers, clippings (HDWH834K) from China, and lubricant (PSLUBE) from the United States. The fourth combination, Scenario 4, consists of two aluminum rotors (AR8373XPR) from China, and a box containing brake pads (17-2223) from India, clippings (H1680K) from China, and lubricant (PSLUBE) from the United States.
You suggest that all combinations of brake components are correctly classified as sets, pursuant to General Rule of Interpretation 3(b). We disagree.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification is determined first in accordance with the terms of the headings of the tariff and any relative section or chapter notes. GRI 3(b) states “Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.” The Explanatory Notes to the Harmonized Commodity Description and Coding System (Explanatory Notes or ENs), including the Subheading Explanatory Notes, although not dispositive or legally binding, provide a commentary on the scope of each heading and certain subheadings of the HTSUS, and are generally indicative of the proper interpretation of such headings and subheadings. Customs believes the notes should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The ENs define a “retail set” as goods which (a) consist of at least two different articles which are, prima facie, classifiable in different headings; (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).
Based on the advertisement materials and pictures supplied with your request, the rotors with or without calipers are not packaged in the same box as the pads, clippings, and lubricant. Although the rotors with or without calipers and the rest of the components may be advertised together as a set, the addition of the rotors in the same shipping box with the brake pad kit does not constitute a retail set for Customs and Border Protection (CBP) purposes. As a result, the rotors with or without calipers in Scenarios 1, 2, and 4 must be classified separately from the brake pad kit.
The brake pad kit, which includes brake pads, clippings, and lubricant, is a set for CBP purposes and will be classified according to its essential character. It is the opinion of this office that the brake pads impart the essential character of the entire kit.
Regarding Scenario 3, the rotors, calipers, and pads are a composite good. Thus, we need to determine the essential character of this assembly.
EN VII to GRI 3(b), states that in "all these cases the goods are to be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable." However, the term "essential character" is not defined within the HTSUS, GRIs or ENs. EN VIII to GRI 3(b) gives guidance, stating that "the factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods." You assert that the brake pads are the essential character of the assembly. We disagree. All components of this assembly are necessary for the brakes to function. However, it is our opinion, that the rotors impart the essential character of this assembly due to their bulkiness and weight. As a result, the combination of brake rotors, calipers, and brake pads will be classified as rotors.
The applicable subheading for the rotors with mounted calipers in Scenarios 1 and 2, rotors with mounted calipers containing brake pads in Scenario 3, and rotors in Scenario 4 will be 8708.30.5030, HTSUS, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Brakes and servo-brakes; parts thereof: For other vehicles: Brake rotors (discs).” The general rate of duty will be 2.5%, ad valorem.
The applicable subheading for the brake pad kit in all four scenarios will be 8708.30.5090, HTSUS, which provides for “Parts and accessories of the motor vehicles of headings 8701to 8705: Brakes and servo-brakes; parts thereof: For other vehicles: Other.” The general duty rate will be 2.5% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 8708.30.5030 and 8708.30.5090, 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 8708.30.5030 and 8708.30.5090, 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/programs-administration/trade-remedies, 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