CLA-2-84:OT:RR:NC:N:2:206
Nathaniel Smith
DBA Nathaniel Smith
252 Cedar Road Poquoson, VA 23662
RE: The tariff classification of an outboard motor from China
Dear Mr. Smith:
In your letter dated June 19, 2023, you requested a tariff classification ruling. Pictures and other descriptive literature was submitted with your request.
The article under consideration is a Yadao T4.0 water cooled, 2-stroke, 4 horsepower (hp) Outboard Motor, which is principally used with small vessels. The maximum output of the motor is 2.9 kilowatts (kW). Its dimensions are 450 millimeters (mm) by 300 mm by 960 mm, and the weight is 13.46 kilograms (kg) net. The motor features a recoil starter, which starts when the operator pulls the handle. Once the motor is running, it must be shifted into gear by positioning a gear handle on the side of the unit. A throttle is used to increase engine rates per minute (rpm) and thrust. The unit will be shipped empty of fluids and will require oil, fuel, gear oil, and grease applied by a grease fitting. It is normally installed onto the transom of a boat using attached clamping bolts on the unit. It is powered by a mix of unleaded gasoline and 2 stroke oil. At importation, the unit will be nearly assembled, with the operating level disconnected.
The applicable subheading for the Yadao T4.0 Outboard Motor will be 8407.21.0040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Spark-ignition reciprocating or rotary internal combustion piston engines: Marine propulsion engines: Outboard motors: Less than 22.38 kW.” The rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8407.21.0040 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., 9903.88.01, in addition to subheading 8407.21.0040, 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 at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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