CLA-2-84:RR:NC:1:102 D82751
Mr. O'Neil L. Woelke, Jr.
Office of the General Counsel
Chrysler Corporation
1000 Chrysler Drive
Auburn Hills, MI 48326-2766
RE: The tariff classification of a timing gear package from
Japan
Dear Mr. Woelke:
In your letter dated September 17, 1998 you requested a
tariff classification ruling on behalf of the Chrysler
Corporation.
The item in question is a "2.6 Timing Gear Package" for use
in the repair of Mitsubishi 2.6 liter gasoline engines used in
Chrysler vehicles. The package is described as a repair kit and
contains the chain sprockets, roller chain, guides, gaskets and
bolts necessary to replace the engine's timing system. A sample
and descriptive literature were submitted.
You indicate that the contents of the timing gear package
originate in Japan and are imported together as complete repair
kits. The kits are not repackaged prior to reaching the end user
which may be either a Chrysler service center, an unrelated
service center or an individual. The components of the kit are
all used together to replace the timing system on a Chrysler K or
S body vehicles.
You maintain that because each kit consists of at least two
different articles classifiable in different headings of the
Harmonized Tariff Schedule of the United States (HTSUS), contains
articles put up together to meet a particular need, and is
packaged in a manner suitable for retail sale, it constitutes
goods put up in sets for retail sale. Further, under the criteria
of General Rule of Interpretation (GRI) 3(b), HTSUS, which
provides that such goods are classifiable according to the
component which gives them their essential character, you
maintain the entire set falls to be classified in HTSUS
subheading 7315.11.00 as roller chain for motor vehicles.
We agree that the timing gear package constitutes goods put
up in sets for retail sale, but under the criteria of GRI 3(b),
HTSUS, we find that it is not the chain which imparts essential
character to the set.
You assert that the chain is of central importance to the
set, because it interfaces with the chain sprockets to transmit
rotary power. However, the purpose of an engine's timing system
is not only to transmit rotary power, but more importantly to
maintain an exact speed ratio between the rotation of the
crankshaft and the camshaft. While we find that the chain and
chain sprockets contribute equally to the transmission of power,
it is the chain sprockets which establish the desired speed ratio
and thus provide the "timing" for the engine. We also note that
the cost breakdown provided for the timing package indicates that
the cost attributed to the chain sprockets exceeds that of the
other components. Accordingly, we find the entire set falls to be
classified in HTSUS heading 8483, which provides for parts of
gears and gearing.
The applicable subheading for the timing gear package will
be 8483.90.1050, HTSUS, which provides for other chain sprockets.
The rate of duty will be 3.4 percent ad valorem.
It is the opinion of this office that the roller chain
contained in the timing gear package would be subject to anti-dumping margins under current Department of Commerce orders
related to roller chain. Please contact your local port for the
specific case numbers and percentages for each case. If you
desire a binding ruling on the applicability of either anti-dumping or countervailing duty to your product, please write
directly to the Office of Compliance, Department of Commerce,
Washington, D.C.
This ruling is being issued under the provisions of Part 177
of the Customs Regulations (19 CFR 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, contact National Import Specialist Kenneth
T. Brock at 212-466-5493.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division