CLA-2-76:OT:RR:NC:N1:116
Mr. David Taylor
ALUnna Tubes USA
3033 S Parker Road
Aurora, CO 80014
RE: The tariff classification of aluminum tubes with a foam deadener from Germany
Dear Mr. Taylor:
In your letter dated November 12, 2020, you requested a tariff classification ruling.
The products under consideration are described as aluminum tubes with a foam insert which will be manufactured into aluminum drive shafts used in passenger vehicles. These drawn seamless tubes are made from aluminum alloy 6061. The tubes have outside diameters ranging from 3 to 6 inches and will be imported in lengths from 20 inches up to 70 inches.
In an email to this office, you indicated that after importation, the following steps are performed at the United States production site in order to complete the drive shaft: yokes would be welded on, U-joints will be added on and balance weights are added to balance the assembly.
You suggest that the tubing assembly be classified in heading 8708, Harmonized Tariff Schedule of the United States (HTSUS), as parts of vehicles. However, the tubing assembly in the condition as imported is not identifiable as a vehicle part or accessory. The inserted foam is not permanently attached to the inside of the tube until after it is imported into the United States. Furthermore, additional work is done in the United States to the assembly before it becomes a complete drive shaft. As a result, classification of the tubing assembly in heading 8708, HTSUS, is precluded.
The tubing assembly is comprised of different components (i.e., aluminum and plastic) and is considered a composite good. Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRIs) taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedules covers the aluminum and plastic (foam) components of the tubing assembly, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. EN VIII to GRI 3(b) explains that “the factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or the use of the goods.”
The final product (drive shaft) is functional without the foam insert, but it is not functional without the aluminum tube. Also, after importation, additional components are added to the tube before it ultimately becomes a complete drive shaft. Therefore, we find that the essential character of the subject assembly is imparted by the aluminum tube.
The applicable subheading for the aluminum tube with foam deadener will be 7608.20.0030, HTSUS, which provides for aluminum tubes and pipes: of aluminum alloys: seamless. The rate of duty is 5.7 percent ad valorem.
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 at https://hts.usitc.gov/current.
On March 8, 2018, Presidential proclamations 9704 and 9705 imposed additional tariffs and quotas on a number of steel and aluminum mill products. Exemptions have been made on a temporary basis for some countries. Quantitative limitations or quotas may apply for certain exempted countries and can also be found in Chapter 99. Additional duties for steel of 25 percent and for aluminum of 10 percent are reflected in Chapter 99, subheading 9903.80.01 for steel and subheading 9903.85.01 for aluminum. Products classified under subheading 7608.20.0030, HTSUS, may be subject to additional duties or quota. At the time of importation, you must report the Chapter 99 subheading applicable to your product classification in addition to the Chapter 72, 73 or 76 subheading listed above.
The Proclamations are subject to periodic amendment of the exclusions, so you should exercise reasonable care in monitoring the status of goods covered by the Proclamations and the applicable Chapter 99 subheadings.
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 Angelia Amerson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division