CLA-2-95:OT:RR:NC:N4:424
Jeffery E. Stapleton
M.E. Dey & Co., Inc.
700 W. Virginia Street
Milwaukee, WI 53207
RE: The tariff classification of stationary exercise bicycle parts from China and South Korea.
Dear Mr. Stapleton:
In your letter dated August 20, 2021, you requested a tariff classification ruling on behalf of your client, Mayville Engineering Co., Inc.
Product descriptions and specification sheets of steel castings which are fabricated for use on stationary exercise bicycles were received with your inquiry. The products at issue are designed for indoor fitness bicycles that combine cardio training and strength resistance. You are requesting tariff classification for the following item numbers/items: 1029144/ threaded insert, monitor arm headset; 1022461/ handlebar plug; 1028421/ monitor to handlebar connection pin; 1028523/ flywheel hub mount, right and 1030373/ threaded bushing.
The first article under consideration, item number 1029144, is described as a threaded insert, monitor arm. It is a perforated block made of steel with an internal thread and functions to hold a bolt in place and fasten the monitor arm to the stationary bike. The article is a triangular shape with rounded points, and has a threaded hole located near the top point. It is shaped to match the monitor arm weldment, into which this article will be welded after importation. A bolt will be threaded through this article and into a monitor arm stand. As noted in HQ ruling H293256 dated June 3, 2019, “a nut is defined broadly as a type of fastener which is internally threaded and often used opposite a mating bolt, holding the bolt in place and thus fastening the materials together.” As such, this article meets the definition of the term nut.
The second product under consideration, item number 1022461, is a steel stamping described as a handlebar plug. After importation, it will become part of the handlebar. The handlebar plug functions as the endcap of the stationary bike handlebar tube.
The next article under consideration, item number 1028421, is described as a monitor to handlebar connection pin. It is a steel unthreaded pin that is 32 mm long and 8 mm in diameter and is chamfered on both ends. The pin will be welded in place in the headset weldment to connect the monitor to the handlebar and prevent rotation of the monitor arm.
The next article under consideration is identified as item number 1028523, flywheel hub mount, right. After importation, it will become part of the fork weldment. The weldment is ultimately mounted between the stationary bike frame and the resistive flywheel.
The last article under consideration, part number 1030373, is described as a threaded bushing. It is a steel, one-piece, tubular fastener with internal nut threads that is closed at one end. It measures 23 mm tall and 12 mm in diameter and is chamfered on both ends. The article is welded into place on the stabilizer plate and a bolt is threaded into the fastener to secure the stabilizer tube to the weldment. Again, as noted in HQ ruling H293256 dated June 3, 2019, “a nut is defined broadly as a type of fastener which is internally threaded and often used opposite a mating bolt, holding the bolt in place and thus fastening the materials together.” As such, this article meets the definition of the term nut.
The applicable subheading for item number 1029144, threaded insert, monitor arm, and item number 1030373, threaded bushing, will be 7318.16.0085, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel: Threaded articles: Nuts, Other: Other. The general duty rate will be free.
The applicable subheading for item number 1022461, handlebar plug and item number 1028523, flywheel hub mount, right, will be 9506.91.0010, HTSUS, which provides for articles and equipment for general physical exercise, gymnastics or athletics; parts and accessories thereof, exercise cycles. The general rate of duty will be 4.6%.
The applicable subheading for item number 1028421, monitor to handlebar connection pin will be 7318.29.0000, HTSUS, which provides for Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter pins, washers (including spring washers) and similar articles, of iron or steel: Non-threaded articles: Other. The rate of duty will be 2.8% ad valorem.
In your letter, it is stated that some of the products are from China. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 7318.16.0085, HTSUS, and 9506.91.0010, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheadings 7318.16.0085, HTSUS, and 9506.91.0010, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7318.29.0000, 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 7318.29.0000, 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, including information on exclusions and their effective dates, 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, contact National Import Specialist Roseanne Murphy at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division