CLA-2-87:OT:RR:NC:N2:206
Brett Everett
OEC Group
13100 Alondra Blvd
Cerritos, CA 90703
RE: The tariff classification of a wheel and tire assembly from China.
Dear Mr. Everett:
In your letter dated March 19, 2020, you requested a tariff classification ruling on behalf of your client Champion Power Equipment. Pictures and descriptive literature were provided with your request.
The item under consideration has been identified as a Wheel Kit (Part Number 40065), which is a wheel and tire assembly used on a generator for agricultural, horticultural, and forestry use. You state that the kit includes never flat wheels, a fold away handle, a support leg with mounts, and assorted hardware, such as bolts, cotter pins, and washers.
You suggested classifying the wheel kit within subheading 8432.90.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sports ground rollers; parts thereof: Parts: Wheels and tire assemblies.” However, the kit is used on a metal frame cart to which a generator is attached. The kit assists the user in moving the cart and the generator to a desired location. The kit does not assist with the primary function of agricultural, horticultural or forestry machinery. Therefore, the kit cannot be considered an integral, constituent or component part without which agricultural, horticultural or forestry machinery could function. By contrast, the generator cart functions only to transport the generator itself. The cart cannot be used to move the generator without the kit, and thus the kit is an integral component of the cart itself. Carts are classifiable in subheading 8716, HTSUS. Note 1(l) to Section XVI, HTSUS, states that “[t]his section does not cover…Articles of Section XVII.” Section XVII includes heading 8716, HTSUS. Consequently, classification of the wheel kit in heading 8432, HTSUS, is precluded. (See HQ H260942, dated January 25, 2017, which was later affirmed by HQ H297794, dated July 19, 2018).
The applicable subheading for the Wheel Kit (Part Number 40065) will be 8716.90.5056, HTSUS, which provides for “Trailers and semi-trailers; other vehicles, not mechanically propelled; and parts thereof: Parts: Other: Wheels: Other: Wheels and tires: Wheels with tires for off-the-highway use.” The rate of duty will be 3.1% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8716.90.5056, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8716.90.5056, 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 trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, 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 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