CLA-2-84:OT:RR:NC:N1:102
Greg Breault
Dorman Products
3400 East Walnut Street Colmar, PA 18915
RE: The tariff classification of an Active Grille Shutter from China
Dear Mr. Breault:
In your letter dated August 15, 2023, you requested a tariff classification ruling on an Active Grille Shutter.
The Active Grille Shutter, item number 610-348, is a tiered article that consists of an air vent, also referred to as an air duct, and a series of panels that are powered by an electric motor. The air vent, which is located on the upper section of the assembly, has no mechanical features and allows air to continuously enter the front area of a motor vehicle. The panels located in the bottom section of the shutter open and close, controlling the flow of air into the vehicle. The Active Grille Shutter is constructed of plastic material.
In your letter, you suggest the grille shutter is classified within subheading 8501.10.4060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Electric motors and generators (excluding generating sets): 8501.10 Motors of an output not exceeding 37.5 W: Of under 18.65 W: Other: DC: Other. We disagree.
The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes. In the event that goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require the remaining GRI will be applied, in the order of their appearance.
In this instance, the grille shutter is a composite good, and as such, GRI 3 governs the classification. GRI 3(b) states, in pertinent part: (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. The Explanatory Notes for GRI 3(b) explain that the essential character of an item may be determined by the nature of the material or component, its bulk, quantity, weight, or value, or by the role of a constituent material in relation to the use of the goods.
In this instance, the lower section of the assembly, which functions as a motor-actuated valve, imparts the essential character of the Active Grille Shutter. The role of the grille shutter is to direct airflow to enhance the operation of certain vehicle components. While air continuously enters through the upper portion of the shutter, it is the actual opening and closing of the panels in the lower section of the shutter that adjusts air flow into the vehicle, which in turn impacts the operation of certain vehicle components.
Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves are provided for in Heading 8481. Therefore, in accordance with GRI 3(b), the applicable subheading for the Active Grille Shutter, item number 610-348, will be 8481.80.9025, HTSUS, which provides for Taps, cocks, valves and similar appliances…parts thereof: Other appliances: Other: Other: With electrical or electro-hydraulic actuators: Other. The rate of duty will be 2 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8481.80.9025, 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 8481.80.9025, 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 the following addresses: https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china.
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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division