CLA-2-87:OT:RR:NC:N1:106
Kim J. Jenkins, Trade Compliance Manager
Arctic Cat, Inc.
601 Brooks Avenue South
Thief River Falls, MN 56701-2736
RE: The tariff classification of parts of Continuously Variable Transmission (CVT) from various countries.
Dear Ms. Jenkins,
In your letter dated May 5, 2014, you requested a tariff classification ruling.
The items under consideration have been identified as a centrifugal clutch, a clutch housing, a movable drive sheave (or a movable drive face), a stationary drive sheave (or a fixed drive face), and a driven pulley assembly. In your request, you state that all five items are parts of a CVT used on All Terrain Vehicles.
The centrifugal clutch has a splined hole on its center and connects to the engine’s crankshaft. It has five pivoting shoes lined on the outer circumference held by helical springs.
The clutch housing is made of steel and consists of the clutch drum and shaft. When the engine reach a certain RPM the centrifugal clutch will engage the inside of the clutch housing assembly drum. This will cause the whole assembly to rotate and act upon the movable drive pulley.
The movable drive sheave is made of aluminum and has a hole in the center with a bushing that acts as plain shaft bearing. One side is half of a pulley, and the side is machined with ramps for movable drive rollers and movable drive face.
The fixed drive face is made of aluminum and acts as the other half of the moveable drive pulley.
The driven pulley assembly consists of the fixed and movable face along with a helical spring and cam. The driven pulley is acted upon by the transmission belt. As the transmission belt is pinched and moves out towards the edge of the drive pulley the belt if forced inward on the driven pulley. The driven pulley acts as a counter force to the drive pulley, as the RPM of the engine decreases the spring on the driven pulley and pushes together forcing the belt outward on the driven pulley.
You suggested that the centrifugal clutch and the driven pulley assembly be classified as clutches in subheading 8708.93.6000. Subsequently, the clutch housing , the movable drive sheave, and the stationary drive sheave be classified as parts of clutches in 8708.93.7500. You also suggested classification 8708.40.7580 for all five items as parts of gear boxes (transmissions).
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs) taken in order. GRI 1 provides that the classification is determined first in accordance with the terms of the headings and any relative section and chapter notes.
There is no definition of “transmission” or “clutch” provided in the HTSUS nor in the Explanatory Notes, however, it is a well-established tenet of customs law that tariff terms are construed in accordance with their common and commercial meanings and that the common meaning of a tariff term is a question of law. (Toyota Motor Sales, U.S.A., Inc. v. United States, 7 Ct. Int’l Trade 178, 182, 585 F.Supp 649 [1984], aff’d 753 F.2d 1061 [Fed.Cir. 1985]). Thus, it is proper for Customs to turn to lexicographic sources to determine the meanings of the terms at issue. Once having determined the meaning of the terms, in deciding if the subject articles are within the eo nomine classification of the HTS, Customs may consider the use of the merchandise. ( United States v. Quon Quon Co., 46 CCPA 70, 73, C.A.D. 699 [1959]). Customs interprets the use of the merchandise to include the manner in which it is used as well as the reason for which it is used.
Webster’s Dictionary defines a transmission “as an assembly of parts including the speed changing gears and the propeller shaft by which the power is transmitted from an engine to a live axle; also: the speed changing gears in such assembly.”
“Auto Fundamentals” (by Martin W. Stockel, Martin T. Stockel, and Chris Johanson) defines a clutch “as a mechanism designed to connect or disconnect power from the engine to the drive line.”
Although a CVT is a type of a transmission, it does not incorporate gears as in a typical automatic or manual transmission. It consists of two clutches, a primary clutch and a secondary clutch connected by a drive belt.
Clutches are provided for in the Harmonized Tariff Schedule of the United States (HTSUS) in an “eo nominee" provision within subheading 8708.93. “Eo nominee” provisions take precedence over “parts of” provision.
The applicable subheading for the centrifugal clutch and the driven pulley assembly will be 8708.93.6000, which provides for “Parts and accessories of the motor vehicles of Headings 8701 to 8705: Other parts and accessories: Clutches and parts thereof: For other vehicles: Clutches.” The rate of duty will be 2.5 percent.
The applicable subheading of the clutch housing, the movable drive sheave and the stationary drive sheave will be 8708.93.7500, provided for “Parts and accessories of the motor vehicles of Headings 8701 to 8705: Other parts and accessories: Clutches and parts thereof: For other vehicles: Other.” The rate of duty will be 2.5 percent. 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, please contact National Import Specialist Liana Alvarez at [email protected]
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division