CLA-2-84:OT:RR:NC:N1:102
Ms. Teri L. Berlant
GKN Freight Services, Inc.
11105 Beechcrest Lane
Raleigh, NC 27614
RE: The tariff classification of a housed bearing assembled abroad from U.S. components
Dear Ms. Berlant:
In your letter dated February 27, 2012 you requested a tariff classification ruling on behalf of your client, GKN Driveline North America, Inc.
The article under consideration is described as a bearing/bracket assembly, part number 10251684, for use in constant velocity joint driveshafts and automotive driveline intermediate shaft assemblies (linkshafts). The bearing/bracket assembly is comprised of a single row, radial ball bearing that is mounted within a flanged housing and provides rotational support of the driveshaft’s integrated intermediate shaft.
The applicable subheading for the bearing/bracket assembly will be 8483.20.4040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for housed bearings, flange, take-up, cartridge and hanger units, incorporating ball bearings. The rate of duty will be 4.5 percent ad valorem.
You indicate in your request that the ball bearing is manufactured in the United States and exported to the United Kingdom (UK) where it is assembled with a housing of UK origin into a complete housed ball bearing. You inquire as to the applicability of subheading 9802.00.80, HTSUS, to the imported bearing/bracket assembly.
Subheading 9802.00.80, HTSUS, provides a partial duty exemption for articles assembled abroad in whole or in part of fabricated components, the product of the United States, which were exported in condition ready for assembly without further fabrication, have not lost their physical identity in such articles by change in form, shape or otherwise, and have not been advanced in value or improved in condition abroad, except by being assembled and except by operations incidental to the assembly process, such as cleaning, lubrication, and painting.
All three requirements of subheading 9802.00.80, HTSUS, must be satisfied before an article may receive a duty allowance. An article entered under this tariff provision is subject to duty upon the full value of the imported assembled article, less the cost or value of such U.S. components, upon compliance with the documentary requirements of Section 10.24, Customs Regulations (19 C.F.R. 10.24).
Section 10.14(a), Customs Regulations (19 C.F.R. 10.14(a)), states that the U.S. components must be in a condition ready for assembly without further fabrication at the time of their exportation from the United States to qualify for the exemption. Components will not lose their entitlement to the exemption by being subjected to operations incidental to the assembly, either before, during, or after their assembly with other components. Section 10.16(a) Customs Regulations (19 C.F.R. 10.16(a)) provides that the assembly operation performed abroad may consist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fitting, gluing, laminating, sewing, or the use of fastener.
Based on the information you have provided, the assembly in the United Kingdom of the U.S. made ball bearing with the UK origin housing meets the standard for reduced duty treatment in HTSUS heading 9802. Therefore, the bearing/bracket assembly may enter under subheading 9802.00.80, HTSUS, with allowances in duty for the cost or value of the U.S. component, upon compliance with the documentary requirements of 19 C.F.R. 10.24. 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 on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Kenneth T. Brock at (646) 733-3009.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division