CLA-2-84:OT:RR:NC:N2:206
Terry Hall
Arrow Engine Company
2301 E. Independence Street
Tulsa, OK 74110
RE: The tariff classification of engine assemblies from China
Dear Mr. Hall:
In your letter dated December 10, 2018, you requested a tariff classification ruling.
The items under consideration are Engine Assemblies for spark-ignition reciprocating internal combustion piston engines, model numbers A-32, A-42, A-62, and A-160, used in oil and gas field pumping, and auxiliary power applications. You state that at the time of importation these assemblies consist of an engine block, cylinder head, manifold, oil pan, crankshaft, camshaft, rods, pistons, valve train, valve cover, and a fan. They may also contain an alternator and starter. The following will be added in the United States, once imported: ignition systems (including spark plugs), fuel systems (including carburetor), air filtration system, exhaust system, instrumentation, catalytic controls, clutch or generator, mounting base and or housing.
You suggested classifying the engine assemblies with an alternator and starter and without an alternator and starter in heading 8409, Harmonized Tariff Schedule of the United States (HTSUS), as parts of spark ignition engines.
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. GRI 2(a) states, “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.”
The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs. The ENs to heading 8407 state, “The characteristic feature of these engines is that they are equipped with sparking plugs fitted into the cylinder head and with electrical devices (such as magnetos, coils and contact breakers) synchronised with the motor, for supplying high tension current.”
This office agrees that the engine assemblies without an alternator and starter do not possess the essential character of the full engine. Thus, they cannot be classified as engines of heading 8407, HTSUS, pursuant to GRI 2(a). However, the engine assemblies with an alternator and starter have the essential character of a full engine and, as such, satisfy the requirements of GRI 2(a) and the ENs to heading 8407.
The applicable subheading for the Engine Assemblies without an alternator and starter will be 8409.91.9990, 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): Other: Other: Other.” The general rate of duty will be 2.5% ad valorem.
The applicable subheading for the Engine Assemblies with an alternator and starter will be 8407.90.9010, HTSUS, which provides for “Spark-ignition reciprocating or rotary internal combustion piston engines: Other engines: Other: Gas (natural or LP) engines.” The general duty rate will be Free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheadings 8407.90.9010 and 8409.91.9990, HTSUS, unless specifically excluded, are subject to the additional 25 and 10 percent ad valorem rate of duty, respectively. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8407.90.9010, HTSUS and 9903.88.03, in addition to subheading 8409.91.9990, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 https://hts.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