CLA-2 OT:RR:CTF:EMAIN H316285 NVF
Young-bin Oh
Hyundai Motor Company
231, Yangjae 2-dong,
Seocho-gu, Seoul
South Korea
RE: Revocation of NY N264869; Tensioner Arm Assembly
Dear Young-bin Oh:
This ruling is in reference to New York Ruling Letter (“NY”) N264869, dated June 1, 2015, regarding the classification of a tensioner arm assembly under the Harmonized Tariff Schedule of the United States (“HTSUS”). In NY N264869, U.S. Customs and Border Protection (“CBP”) classified the tensioner arm assembly in subheading 8708.99.81, HTSUS, which provides for, “Parts and accessories of motor vehicles of heading 8701 to 8705: Other parts and accessories: Other: Other: Other: Other: Other.” Upon reconsideration, CBP has determined that NY N264869 is in error. Notice of the proposed action was published in the Customs Bulletin, Vol. 56, No. 20, on May 25, 2022. No comments were received in response to that notice.
FACTS:
In NY N264869 the subject merchandise is described as comprising of a plastic shoe and base which together attach to the timing chain and maintain its constant and regular orbit. One end of the item is fixed to an automobile engine with a bolt, the other end of the item transmits pressure from the timing tensioner to chain and maintains its tension. The shoe is attached to the timing chain directly and prevents the chain from getting off of its track. The mold base is fixed to the engine with bolts and attaches to the timing tensioner. In NY N264869, CBP classified the timing chain assembly in subheading 8708.99.81, HTSUS as a part of a motor vehicle.
ISSUE:
Whether the tensioner arm assembly is classified as a part of an engine under heading 8409, HTSUS, or as a part of a motor vehicle under heading 8708, HTSUS.
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 subheadings under consideration are as follows:
8409 Parts suitable for use solely or principally with the engines of heading 8407 or 8408
8708 Parts and accessories of the motor vehicles of headings 8701 to 8705
Note 2(e) to Section XVII, which includes Chapter 87, states in pertinent part that:
The expressions “parts” and “parts and accessories” do not apply to the following articles, whether or not they are identifiable for the goods of this section: Machines or apparatus of headings 8401 to 8479, or parts thereof, other than the radiators for the articles of this section.
Therefore, before we can classify the tensioner arm assembly under heading 8708, we must first determine whether it is classified under heading 8409 as a part of an engine.
The term “part” is not defined in the HTSUS. In the absence of a statutory definition, the courts have fashioned two distinct but reconcilable tests for determining whether a particular item qualifies as a part for tariff classification purposes. See Bauerhin Technologies Limited Partnership, & John V. Carr & Son, Inc. v. United States, 110 F.3d 774 (Fed. Cir. 1997). Under the first test, articulated in United States v. Willoughby Camera Stores, 21 C.C.P.A. 322 (1933), an imported item qualifies as a part only if can be described as an “integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article.” Bauerhin, 110 F.3d at 779. Pursuant to the second test, set forth in United States v. Pompeo, 43 C.C.P.A. 9 (1955), a good is a “part” if it is “dedicated solely for use” with a particular article and, “when applied to that use…meets the Willoughby test.” Bauerhin, 110 F.3d at 779 (citing Pompeo, 43 C.C.P.A. at 14); Ludvig Svensson, Inc. v. United States, 63 F. Supp. 2d 1171, 1178 (Ct. Int'l Trade 1999) (holding that a purported part must satisfy both the Willoughby and Pompeo tests). An item is not a part if it is “a separate and distinct commercial entity.” Bauerhin, 110 F.3d at.779.
For tariff classification purposes, a spark-ignition internal combustion engine of heading 8407 consists only of certain components. See HQ 963386 (June 16, 1999) (accelerator and throttle cables are not part of an engine). The primary components of an engine of heading 8407 generally consist of: a cylinder, piston, connecting-rod, crankshaft, flywheel, inlet and exhaust valves. In order for an engine to function, the piston compresses a mixture of air and fuel in the cylinder and the fuel mixture ignites inside the cylinder. Thus, parts of engines of heading 8407 are limited to the components that directly contribute to the function of internal combustion.
In this case, the tensioner arm assembly is an integral, constituent part of an engine of heading 8407. If the timing chain does not function properly, power cannot be transferred to the camshafts in the precise ratio that is required.( Similarly, without the precise functioning of the timing chain, the engine valves will not open and close properly and the engine will fail. The tensioner arm shoe holds the timing chain in place and in addition to enabling the timing chain to function, also prevents it from coming into direct contact the engine block or the engine head. The base of the tensioner arm assembly connects the shoe to the engine. Without the tensioner arm assembly, the timing chain cannot function, and the engine cannot properly ignite the fuel mixture inside the cylinder. Therefore, the tensioner arm assembly is a part of an engine of heading 8407.
In light of the foregoing, we find that the tensioner arm assembly is classified under heading 8409 as a part of an engine and is therefore excluded from classification under heading 8708 by operation of Note 2(e) to Section XVII, supra.
HOLDING:
By application of GRIs 1 and 6, the tensioner arm assembly is classified in heading 8428, subheading 8409.91.50, HTSUS which provides for “Parts suitable for use solely or principally with the engines of heading 8407 or 8408: Other: Suitable for use solely or principally with spark-ignition internal combustion piston engines (including rotary engines): Other: Other.” The column one, general rate of duty is 2.5% ad valorem.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov/tata/hts/.
In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division