CLA-2-87:OT:RR:NC:N1:106
Young Bin Oh
Hyundai Motor Company
231, Yangjae 2-dong
Seocho-gu, Seoul ASI/KR/KS013
South Korea
RE: The tariff classification of under drive clutches from South Korea
Dear Mr. Oh,
In your letter dated July 3, 2015, you requested a tariff classification ruling.
The items under consideration have been identified as a Hub-Under Drive Clutch (Item Code 45441-23000) and a Drum-Under Drive Clutch (Item Code 45415-23000) used in a motor vehicle.
The Hub-Under Drive Clutch is mounted inside of the automatic transmission of a passenger vehicle and it transmits the power received from the retainer under drive clutch to the sun gear, thus enabling the gears to shift position. The Drum-Under Drive Clutch is a part of the retainer under drive clutch assembly of an automatic transmission. It is assembled with the under drive clutch disk to transmit the rotary force to the hub under drive clutch. Both of these items are constructed of steel.
You suggested that both of these items be classified as “gear boxes and parts thereof” in subheading 8708.40, Harmonized Tariff Schedule of the United States (HTSUS).
Classification of merchandise under the 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.
The Explanatory Notes to the Harmonized Commodity Description and Coding System (Explanatory Notes or ENs), including the Subheading Explanatory Notes, although not dispositive or legally binding, provide a commentary on the scope of each heading and certain subheadings of the HTSUSA, and are generally indicative of the proper interpretation of such headings and subheadings. Customs believes the notes should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The ENs define gear boxes or transmissions in heading 84.83 (E) (1) Gear boxes consisting of assemblies of gears which can be selected in alternative arrangements; the speed of transmission can thus be varied according to the arrangement of gears set.
There is no definition of a clutch provided for in the HTSUS or in the Explanatory Notes. When a tariff term is not defined by the HTSUS or its legislative history, ‘the term’s correct meaning is its common meaning.” (Mita Copystar Am. v. United States, 21 F.3d 1079, 1082 [Fed. Cir. 1994]). The common meaning of a term used in commerce is presumed to be the same as its commercial meaning. (Simod Am. Corp. v. United States, 872 F.2d 1572, 1576 [Fed. Cir. 1989]). To ascertain the common meaning of a term, a court may consult “dictionaries, scientific authorities, and other reliable information sources” and “lexicographic and other materials.” ( C.J. Tower & Sons v. United States, 673 F.2d 1268, 1271 [CCPA 1982]; Simod, 872 F.2d at 1576).
“Auto Fundamentals” (by Martin W. Stockel, Martin T. Stockel, and Chris Johanson) defines clutches as “a mechanism designed to connect or disconnect power from the engine to the drive line.”
Clutches are provided for in the Harmonized Tariff Schedule of the United States (HTSUS) in an “eo nomine” provision within subheading 8708.93. An eo nomine provision takes precedence over a “parts of” provision.
The applicable subheading for the Hub-Under Drive Clutch (Item Code 45441-23000) and the Drum-Under Drive Clutch (Item Code 45415-23000) 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 general 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
Director
National Commodity Specialist Division