OT:RR:CTF:EMAIN H310555 JRG/TPB
TARIFF Nos.: 8708.70.60; 8708.99.68; 8716.90.50
Mr. Mike M. Krassick
Webb Wheel Products, Inc.
2310 Industrial Drive, S.W.
Cullman, Alabama 35055
Re: Modification of NY H85742; Classification of truck and trailer wheels and hubs from
China or South Korea
Dear Mr. Krassick:
The following is our decision regarding reconsideration of New York Ruling Letter
(NY) H85742, dated December 7, 2001, issued to your company, Webb Wheel
Products, Inc., regarding the tariff classification of certain wheels and hubs for trucks
and trailers under the Harmonized Tariff Schedule of the United States (HTSUS).
In that ruling letter, certain spoke wheels for truck steering axles, spoke wheels
for trailers, hubs for truck drive axles, and hubs for trailers were classified under
subheading 8708.70.60, HTSUS (2001), which provides for “Parts and accessories of
the motor vehicles of headings 8701 to 8705: Road wheels and parts and accessories
thereof: For other vehicles: Parts and accessories.”
Upon review of NY H85742, we find that while the classification of the spoke
wheels for trucks is correct, the classification of the spoke wheels for trailers, hubs for
trucks, and hubs for trailers is incorrect. As such, for the reasons set forth below, NY
H85742 is modified with respect to the classification of the spoke wheels for trailers,
hubs for trucks, and hubs for trailers.
Pursuant to Section 625(c)(1), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as
amended by Section 623 of Title VI (Customs Modernization) of the North American
Free Trade Agreement Implementation Act, Pub. L. No. 103-182, 107 Stat. 2057, 2186
(1993), notice of the proposed action was published on September 18, 2024, in Volume
58, Number 37, of the Customs Bulletin. No comments were received in response to
this notice.
FACTS:
The subject merchandise was described in NY H85742 as follows:
The wheels and hubs will be made of iron. The wheels are identified on
your drawings as spoke wheels that are bolted into the brake drums. Your
drawings indicate that the hubs will be imported without the inner bearing
cup and the outer bearing cup.
ISSUE:
What is the classification of the wheels and hubs for trucks and trailers?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of
Interpretation (GRIs). 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. In the event that the goods cannot be classified solely on the
basis of GRI 1, and if the headings and legal notes do not otherwise require, the
remaining GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration are as follows:
8708 Parts and accessories of the motor vehicles of headings 8701 to 8705:
8708.70 Road wheels and parts and accessories thereof:
For other vehicles:
8708.70.60 Parts and accessories…
* * *
Other parts and accessories:
8708.99 Other:
Other:
Other:
8708.99.68 Other parts for power trains…
* * *
8716 Trailers and semi-trailers; other vehicles, not mechanically propelled; and parts
thereof:
8716.90 Parts:
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8716.90.50 Other…
The text of heading 8708, HTSUS, requires a product to be a part or an
accessory for vehicles of headings 8701 through 8705. Trailers, however, are classified
in heading 8716, HTSUS, which provides for trailers and semi-trailers. As a result, no
parts or accessories for such trailers can be classified in heading 8708, HTSUS.
Legal Note 3 to section XVII states
References in Chapters 86 to 88 to ‘parts’ or ‘accessories’ do not apply to parts or
accessories which are not suitable for use solely or principally with the articles of those
Chapters. A part or accessory which answers to a description in two or more of the headings
of those Chapters is to be classified under that heading which corresponds to the principal
use of that part or accessory.
The wheels and hubs at issue are not designed for interchangeable use with
motor vehicles and trailers. Rather, each model corresponds to its specific use. The
hubs for motor vehicle use are very much distinguishable from the hubs used on trailers
by name and physical characteristics. Therefore, they must be classified separately.
Further, we note that wheel hubs (or axle hubs, or hubs) are not wheels, nor parts
or accessories to wheels. Wheel hubs are installed on the drive axle of the vehicle, and
wheels are then installed on the hubs. In fact, hubs for vehicles of headings 8701 to
8705 are listed separately from those wheels in the HTSUS, in subheading 8708.99. In
Headquarters Ruling Letter (HQ) H013123, dated April 14, 2008, U.S. Customs and
Border Protection (CBP) determined that “[a] wheel hub is the component upon which
the wheel is mounted. It fits over the wheel bearings and is also mounted to the brakes.
A brake disc, or rotor, usually made of cast iron, is connected to the wheel or the axle.”
As a result, wheel hubs designed for truck use are classified in subheading 8708.99,
HTSUS, which provides for other parts and accessories of vehicles of headings 8701 to
8705.
The hubs for trucks are for drive axles, which makes them parts of power trains.
As such, they are classified in subheading 8708.99.68, HTSUS, which provides for
“Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and
accessories: Other: Other: Other: Other parts of power trains….”
Lastly, the wheels and hubs for trailers are classified under subheading
8716.90.50, HTSUS, which provides for “Trailers and semi-trailers; other vehicles, not
mechanically propelled; and parts thereof: Parts: Other.”
HOLDING:
By application of GRIs 1 and 6, the hubs for trucks are classified in subheading
8708.99.68, HTSUS, which provides “Parts and accessories of the motor vehicles of
headings 8701 to 8705: Other parts and accessories: Other: Other: Other: Other parts of
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power trains….” The general, column one rate of duty for merchandise classified under
this subheading is 2.5% ad valorem.
The hubs and wheels for trailers are classified under subheading 8716.90.50,
HTSUS, which provides for “Trailers and semi-trailers; other vehicles, not mechanically
propelled; and parts thereof: Parts: Other….” The general rate, column one of duty for
merchandise under this subheading is 3.1% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of
China classified under subheadings 8708.70.60, 8708.99.68, and 8716.90.50, 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 the subheadings 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, 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.
EFFECT ON OTHER RULINGS:
NY H85742, dated December 7, 2001, is hereby MODIFIED with respect to the
classification of the spoke wheels for trailers, hubs for trucks, and hubs for trailers.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days
after its publication in the Customs Bulletin.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division
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