CLA-2-84:OT:RR:NC:N1:118
Mr. Michael Dahm
Cole International USA Inc.
1775 Baseline Road
Grand Island, NY 14072
RE: The tariff classification of a hub and shaft assembly from China.
Dear Mr. Dahm:
In your letter dated January 28, 2020, on behalf of your client, Mandako Agri Marketing 2010 Ltd., you requested a ruling on the tariff classification of a hub and shaft assembly from China and the applicability of subheading 9817.00.60, Harmonized Tariff Schedule of the United States (HTSUS).
The item under consideration is identified as a 302-H&S1 Coulter Hub and Shaft Assembly. You state that three part numbers are associated with this item: R9903004, R9903016, and R9903005. The item is a sealed assembly consisting primarily of a shaft, bearings and a steel disc. It is designed and built exclusively for use on a Mandako line of vertical tillage machines. The 302-H&S1 Coulter Hub and Shaft Assembly functions as a mounting or connecting component, fitted between the coulter blade and the shank body, which also features anti-friction capabilities. It is engineered to support the high radial thrust loads created during agricultural tilling.
The applicable subheading for the 302-H&S1 Coulter Hub and Shaft Assembly, will be 8432.90.0050, HTSUS, which provides for agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sports ground rollers; parts thereof: parts…other: of harrows, scarifiers, cultivators, weeders and hoes. The general rate of duty will be free.
In your submission, you also request that the 302-H&S1 Coulter Hub and Shaft Assembly be considered for duty-free treatment as agricultural or horticultural machinery under subheading 9817.00.60, HTSUS, which provides for parts to be used in articles provided for in headings 8432, HTSUS. Subheading 9817.00.60, HTSUS, is an actual use provision. To fall within this special classification, a three-part test must be met. First, the subject merchandise must not be excluded from the heading under Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2, HTSUS. Secondly, the terms of the heading must be met in accordance with GRI 1, which provides that classification is determined according to the terms of the headings and any relative section or chapter notes. Thirdly, the article must comply with the actual use regulations under Sections 10.131 through 10.139, Customs Regulations (19 C.F.R. §§ 10.131 through 10.139).
Articles provided for in heading 8432 are excluded from subheading 9817.00.60 pursuant to U.S. Note 2(t) to Subchapter XVII of Chapter 98. While the instant item is considered a part of an article of heading 8432, HTSUS, the exclusion in Note 2(t) refers only to “articles” and not “parts” (see H264768, dated September 7, 2017). Therefore, the part at issue does not fall within the exclusions enumerated in Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2, and thus satisfies the first part of the test. The instant item also satisfies the terms of subheading 9817.00.60, which has two parts to it: the article under consideration must 1) qualify as a part; and 2) be used with an article of headings 8432, 8433, 8434, or 8436. In regard to the second part of subheading 9817.00.60, HTSUS, tillage machines are provided for in heading 8432, HTSUS, and therefore the item is a part to be used in an article provided for in heading 8432, HTSUS. With respect to the first part of the subheading, a part must be either: an integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article. In this case, the 302-H&S1 Coulter Hub and Shaft Assembly is stated to be for use as an integral part of a tillage machine without which the machine could not function.
Therefore, provided the item will be actually used in a tillage machine classified in heading 8432, HTSUS, and the documentary requirements of 19 C.F.R. §§ 10.131 through 10.139 can be satisfied, it will qualify for duty-free treatment under subheading 9817.00.60, HTSUS. We note in particular that the importer is responsible for satisfying the documentary requirements, and the item must be intended for such use at the time of importation and proof thereof must be furnished within three years of the date of entry.
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 the 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, contact National Import Specialist Anthony E. Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division