CLA-2-87:OT:RR:NC:N1:106
Andre LaMorgia, Chief Operating Officer
Cardinal Trade Associates
1430 Walnut Street, Suite 200
Philadelphia, PA 19102-4024
RE: The tariff classification of Front Suspension Assembly and Rear Axle Assembly from China
Dear Mr. LaMorgia,
In your letter dated April 6, 2017, you requested a tariff classification ruling on behalf of Nohm, Inc. of Burlingame, California.
The items under consideration have been identified as a Front Suspension Assembly and a Rear Axle Assembly. The Front Suspension Assembly consists of a sub-frame (cradle), two upper control arms, two lower control arms, rack and pinion steering assembly, air conditioning condenser, two shock absorbers and springs, two wheel hubs, and two brake assemblies which include brake rotors, brake pads brake calipers, and brake fluid lines. A complete bill of materials was submitted with your request.
The Rear Axle Assembly consists of dual, permanent magnet electric drive motors, two direct coupled reduction gearbox assemblies, two wheel hub assemblies with integrated planetary gear trains, an axle cradle, four suspension arms, and two disk brake assemblies, which include brake rotors, brake pads, brake calipers and brake fluid lines. As with the front suspension assembly, a complete bill of materials was submitted with your letter.
You suggested that the Front Suspension Assembly and the Rear Axle Assembly be classified in 8708.50.6500 as non-driving axles and 8708.50.6100 as drive axles, respectively. Although there is no argument that the assemblies fall within the provisions of heading 8708, we disagree with the proposed classification subheading.
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the GRIs. GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes.
Subheading 8708.50 provides for “Drive-axles with differential, whether or not provided with other transmission components, and non-driving axles; parts thereof.” The assemblies under review consist of a larger variety of components, beyond the non-driving axles or drive-axles as described above. You offered ruling NY R04640, dated 09/05/2006, as precedent for the Front Suspension Assembly. However, based on the limited description in that ruling, it appears the assembly consisted of a front axle and assembled steering parts for a non-drive axle designed for use in a non-independent suspension where both the right and left wheel is attached to the same solid axle.
Taken from the descriptive literature submitted in your request, it is clear that your assembly has spindles in lieu of a straight solid axle. Spindles are typically found in an independent suspension that allows each wheel to move vertically independently of each other. Therefore, the front axle assembly in ruling NY R04640 is very different from yours and is precluded from consideration. Although, spindles are classified as parts of non-driving axles, your Front Suspension Assembly, as well as the Rear Axle Assembly additionally consists of other parts and complete systems. As such, subheading 8708.50. HTSUS does not apply.
The applicable subheading for the Front Suspension Assembly will be 8708.99.8180, HTSUS, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories: Other: Other: Other: Other: Other: Other.” The general rate of duty will be 2.5%.
The applicable subheading for the Rear Axle Assembly will be 8708.99.6890, HTSUS, which provides for “Parts and accessories of the motor vehicles of heading 8701 to 8705: Other parts and accessories: Other: Other: Other: Other: Other parts for power trains.” The general rate of duty will be 2.5%.
Duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the World Wide Web at http://www.usitc.gov/current.
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,
Steven A. Mack
Director
National Commodity Specialist Division