CLA-2-84:OT:RR:NC:N1:102
James P. Strnad
HydraForce, Inc
500 Barclay Blvd
Lincolnshire, Illinois 60069
RE: The tariff classification of a hydraulic manifold from China
Dear Mr. Strnad:
In your letter dated February 4, 2020 you requested a tariff classification ruling. Descriptive information was provided.
The merchandise under consideration is referred to as a hydraulic manifold, model number HF30499-05.4. The hydraulic manifold, which is used in an aerial lift machine, primarily consists of an aluminum manifold block, a port and expander plug, a diagnostic coupling, electromagnetic coils and a number of different valves that control hydraulic pressure and flow rate. The hydraulic manifold controls the flow and pressure of hydraulic fluid power from the hydraulic power unit to the various actuators that control the movement of three power functions within the lift machine, such as the steering cylinder, the propel motors and the platform lift cylinders.
In your letter, you suggest that the hydraulic manifold should be classified under subheading 8431.20.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts suitable for use solely or principally with machinery of heading 8427. We disagree.
Note 2 to Section XVI states that subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:
(a) Parts which are goods included in any of the headings of chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;
(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517;
(c) All other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level (for the 4-digit headings and the 6-digit subheadings) and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs. While neither legally binding nor dispositive of classification issues, the ENs provide commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (August 23, 1989).
In this instance, the hydraulic manifold, which consists of a number of different valves, controls the flow and pressure of hydraulic fluid. The ENs to Heading 8481 explain that this heading covers taps, cocks, valves and similar appliances, used on or in pipes, tanks, vats or the like to regulate the flow (for supply, discharge, etc.), of fluids (liquid, viscous or gaseous), or, in certain cases, of solids (e.g., sand). This heading includes such devices designed to regulate the pressure of the flow velocity of a liquid or a gas. The ENs to heading 8481 clearly describe the subject hydraulic manifold and thus, by application of Note 2(a) to Section XVI, the hydraulic manifold is precluded from subheading 8431.20.0000 and instead is classified within heading 8481.
In regards to the subheading, it is noted that Subheading Note 3 to Chapter 84 explains that for the purposes of subheading 8481.20, the expression “valves for oleohydraulic or pneumatic transmissions” means valves which are used specifically in the transmission of “fluid power” in a hydraulic or pneumatic system, where the energy source is supplied in the form of pressurized fluids (liquid or gas). These valves may be of any type (for example, pressure-reducing type, check type). Subheading 8481.20 takes precedence over all other subheadings of heading 8481. The subject hydraulic manifold is used to transmit fluid power in a system that controls the flow and pressure of hydraulic fluid power.
Therefore, in accordance with Note 2(a) to Section XVI and Subheading Note 3 to Chapter 84, the applicable subheading for the hydraulic manifold, model number HF30499-05.4, will be 8481.20.0050, HTSUS, which provides for Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: Valves for oleohydraulic or pneumatic transmissions: Hydraulic valves: Other. The general rate of duty is 2 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8481.20.0050, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8481.20.0050, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading.
For background information regarding the Section 301 trade remedy, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division