CLA-2-84:OT:RR:NC:N1:118
Lawrence J. Bogard
Neville Peterson LLP
1400 16th Street, N.W.
Suite 350
Washington, D.C. 20036
RE: The tariff classification of a Gearbox Assembly for Fertilizer Spreaders from China.
Dear Mr. Bogard:
In your letter dated April 23, 2020, on behalf of your client, Gleason Industrial Products, Inc., you requested a ruling on the tariff classification of a Gearbox Assembly for Fertilizer Spreaders 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 Gearbox Assembly, Gleason Part Number 9310A. You state that your client intends to import this part for use in manufacturing its various models of fertilizer spreaders. The length of the axles varies among the different models of Gleason's fertilizer spreaders. Consequently, although the gearbox is designed to accept axles of all lengths so that it can be used in the production of a number of different fertilizer spreaders, the part number assigned to the gearbox may vary for each model of fertilizer spreader. The fertilizer spreaders include models that are pushed by hand in front of the operator (known as "walk-behind" spreaders), as well as those that are towed behind consumer grade lawn tractors and similar motorized equipment. The fertilizer used in these spreaders is granular rather than liquid. Accordingly, it is not sprayed, but instead it is disbursed in a broadcast manner when the fertilizer granules fall onto a rotating spinner disk. Blade-like ridges on the disk use the centrifugal force of the rotating spinner disk to throw the fertilizer granules out from the spreader.
The Gearbox Assembly functions to change the horizontal circular motion of the fertilizer spreader's wheels and axle to a vertical circular motion, which is used to drive the spinner disc that distributes the fertilizer. It does so through a drive gear that is attached to the axle of the fertilizer spreader. This drive gear engages a conical pinion gear that is itself attached to a universal spinner shaft. That shaft is attached to the spinner disc. The gears and associated parts are housed in a gear case made of grade 2018 alloy aluminum.
In your letter you suggest that the gear box assembly is classified under subheading 8483.40.5010 HTSUS, which provides for Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints): gears and gearing, other than toothed wheels, chain sprockets and other transmission elements entered separately; ball or roller screws; gear boxes and other speed changers, including torque converters: Gearboxes and other speed changers: Fixed ratio speed changers, multiple and variable ratio speed changers each ratio of which is selected by manual manipulation: Other: Fixed ratio speed changers. We disagree, because while there are pinion and drive gears within the assembly, the gearbox assembly is also, made-up of other components that do not transmit power. The assembly has nylon bushings that contribute to the steering of the walk-behind spreader and a shaft that rotates a disc and the agitator pin that stirs the fertilizer to break up any fertilizer clumps. Based on these additional functions, the gearbox assembly does not meet the terms of heading 8483.
In support of classifying the gearbox assembly under subheading 8483.40.5010, you reference HQ ruling 952440, dated August 27, 1992, NY ruling C80751, dated November 13, 1997, and NY ruling N050749, dated February 27, 2009. However, the function and application of the gearbox assembly in C80751 is not stated and the gearboxes in HQ 952440 and NY N050749 are not gearbox assemblies and have different applications, as they are used in rotary mowers, post hole diggers and irrigation equipment. For these reasons, the referenced rulings would not apply to this scenario.
The applicable subheading for the Gearbox Assembly, Gleason Part Number 9310A, will be 8432.90.0060, HTSUS, which provides for agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sports ground rollers; parts thereof: parts…other: of seeders, planters, transplanters, manure speaders and fertilizer spreaders. The general rate of duty will be free.
In your submission, you also requested that the Gearbox 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 Gearbox Assembly is stated to be for use as an integral part of a fertilizer spreader without which the machine could not function.
Therefore, provided the item will actually be used in a fertilizer spreader 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. In particular, we note 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