CLA-2-86:S:N:N1:106 811057

Mr. Ned H. Marshak, Esq.
Sharretts, Paley, Carter & Blauvelt, PC
67 Broad Street
New York, New York 10004

RE: The tariff classification of railway carbody shells from Italy

Dear Mr. Marshak:

In your letter dated May 25, 1995, on behalf of Breda Construzioni Ferroviarie S.p.a. of Italy, you requested a tariff classification ruling. You included several exhibits supporting your request.

The carbody shells of this request will be produced in Italy and shipped to the United States for assembly with trucks and a wide variety of other subassemblies and components into finished self-propelled rail passenger coaches for sale to the Los Angeles County Metropolitan Transportation Authority. There are two different types of vehicles in this request, so-called "A" and "B" married pairs. Neither "A" nor "B", when finished, can operate alone since each vehicle contains certain unique components which complement unique components found on the other.

In their imported condition, each of the carbody shells, whether "A" or "B", consists of a steel frame and various internal fittings, including the floor, carpet, seat supports, steps, windows, roof panels, wiring, internal linings, ventilating grills and other miscellaneous parts, components and fittings. Major parts and components which will be fitted to the shells after importation include: propulsion equipment, brakes, couplers, wheels and axles, air conditioning, trucks, communication system, seats, master controller and console, ATP system, and radio and antenna. The FOB value of the carbody shell as imported is said to represent approximately 38 percent of the total value of the finished vehicle. It is estimated that final assembly of the finished vehicle in the United States will require approximately 900 hours per vehicle followed by a period of extensive testing before final delivery.

The applicable subheading for the carbody shells will be 8607.99.5000, Harmonized Tariff Schedule of the United States (HTS), which provides for parts of railway or tramway. The rate of duty will be 3.7 percent ad valorem.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.


Jean F. Maguire
Area Director
New York Seaport