CLA-2-40:OT:RR:NC:N4:421
Mr. Young Bin Oh
Hyundai Motor Company
231, Yangjae 2-dong
Seocho-gu, Seoul
ASI|KR|KS013|SEOUL
SOUTH KOREA
RE: The tariff classification of an oil seal assembly from South Korea
Dear Mr. Oh:
In your letter, dated June 26, 2015, you requested a tariff classification ruling. Product information and photos were submitted for our review.
The classification was requested for an oil seal assembly designed for use in an automotive diesel engine. The documentation presented indicates that the oil seal assembly is constructed of polytetrafluoroethylene (PTFE) plastic, ethylene-acrylic rubber (AEM), and metal components. The assembly consists of a steel plate that maintains the position of an oil seal made from PTFE and a second oil seal made from AEM. An aluminum bracket is used to secure the assembly to the engine. Your submission states that the PTFE seal prevents oil leakage by attaching to the rotating crank shaft, and that the AEM seal prevents oil leakage by attaching to the engine block.
The 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 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require the remaining GRIs will be applied, in the order of their appearance. Because the oil seal assembly is constructed of multiple materials that are each classifiable in different headings, it is a composite good, and is not classifiable in accordance with GRI 1. General Rule of Interpretation (GRI) 3(b) provides that composite goods shall be classified as if they consisted of the material or component which gives them their essential character.
The essential character of a composite good may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods. Because the function of the oil seal assembly is to prevent oil leakage, and because both the PTFE and AEM seals prevent oil leakage, neither gives the assembly its essential character. Therefore, the oil seal assembly is classified in accordance with GRI 3(c), which instructs that the oil seal assembly is classifiable by the functional component that occurs last in the HTSUS, or the AEM seal.
You suggest that the assembly is classifiable under subheading 8409.91, 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). However, Additional U. S. Rule of Interpretation 1(c) instructs that “a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for "parts" or "parts and accessories" shall not prevail over a specific provision for such part or accessory.” Because oil seals of rubber are specifically provided for elsewhere in the HTSUS, they are not classifiable as parts in Heading 8409.
The applicable subheading for the oil seal assembly will be 4016.93.1020, HTSUS, which provides for Other articles of vulcanized rubber other than hard rubber: Other (than of cellular rubber): Gaskets, washers and other seals: Of a kind used in the automotive goods of chapter 87: Oil seals. The rate of duty is 2.5 percent ad valorem.
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 Laurel Duvall at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division