Mr. Ned H. Marshak, Esq.
Sharretts, Paley, Carter & Blauvelt, PC
75 Broad Street
New York, New York 10004
RE: The tariff classification of railway carbody shells from Italy
Dear Mr. Marshak:
In your letter dated April 5, 1999, 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 Metropolitan Atlanta Rapid Transit Authority (MARTA). There are 92 such carbody shells to be shipped to the United States over the life of a contract with MARTA. Your inquiry concerns two vehicles, so-called cars "A" and "B", which operate in the nature of married pairs. While both "A" and "B" cars, when finished, are independently self-propelled, they are not intended to operate separately since each vehicle contains certain components which complement certain other 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 plymetal floor, carpet, steps, windows and seals, roof panels, wiring, internal linings, door systems, pneumatic systems, ventilating grills, driver's cab fittings 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, seats, master controller and console, ATC equipment, auxiliary power unit, handrails, batteries, and bearings and bushings. The FOB value of the carbody shell as imported is said to represent approximately 45 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 to MARTA.
The applicable subheading for the carbody shells will be 8607.99.5000, Harmonized Tariff Schedule of the United States (HTS), which provides for other parts of railway or tramway rolling stock. The rate of duty will be 3.1 percent ad valorem.
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
Patrick J. Wholey at 212-637-7036.
Robert B. Swierupski