CLA-2-84:OT:RR:NC:N1:102
Mr. Michael J. Rowles
DJR Logistics, Inc.
510 Heron Drive, Suite 201
Swedesboro, NJ 08085
RE: The tariff classification of a wheel drive assembly from China.
Dear Mr. Rowles:
In your letter dated January 29, 2014 you requested a tariff classification ruling on behalf of your client, Drives, Controls, and Systems, Division of Adapter Fittings Direct, Inc.
The product under consideration is a wheel drive assembly consisting of an unlimited rotary acting axial piston type hydraulic motor, a planetary gearbox and a wheel hub with an optional drum or disc brake. The wheel drive assembly uses pressurized hydraulic fluid to propel a vehicle and can be used on many different types of vehicles (i.e. skid steer loaders, lawn mowers, agricultural sprayers, etc.).
Hydraulic flow and pressure supplied by a separate hydraulic pump is directed to the hydraulic motor which rotates the motor and gives it torque. The motor rotates the planetary gearbox which then turns the wheel hub. The vehicle will move either forward or in reverse depending on the direction of oil flow to the hydraulic motor.
Section XVI, Note 3, Harmonized Tariff Schedule of the United States (HTSUS), states that unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. Note 5 states that for the purposes of the Section XVI notes the expression "machine" means any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of chapter 84 or 85.
Based on the information provided, this office finds that the wheel drive assembly at issue is a composite machine in accordance with Section XVI, Note 3, HTSUS. General EN (VI) to Section XVI states that composite machines include machines of different kinds (in this case a motor of heading 8412 and a gearbox of heading 8483) fitted together to form a whole, that is, incorporated one in the other or mounted one on the other, or mounted on a common base or frame or in a common housing (wheel hub).
Although it is the planetary gearbox that actually powers the wheel hub, it is the hydraulic motor, supplied with pressurized fluid by a separate hydraulic pump driven by an external source of power, i.e. the vehicle’s prime mover (usually an internal combustion engine), which provides the necessary rotation to the gearbox. Therefore, we conclude that it is the hydraulic motor component that performs the principal function of this composite machine, the whole being classifiable in heading 8412, HTSUS.
The applicable subheading for the wheel drive assembly will be 8412.29.8045, HTSUS, which provides for other engines and motors, and parts thereof, hydraulic power engines and motors, other, other, unlimited rotary acting, axial piston type. The rate of duty will be free.
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 Patricia O’Donnell at (646) 733-3011.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division