Russell C. Menyhart
Taft, Stettinius & Hollister LLP
One Indiana Square, Suite 3500
Indianapolis, IN 46204
RE: The tariff classification of a magnetic assembly China
Dear Mr. Menyhart:
In your letter dated August 8, 2018, on behalf of your client Polaris Rare Earth Metals, LLC of Carmel, Indiana, you requested a tariff classification ruling. Technical information was provided.
The magnetic assembly, part number E1510008439, consists of a neodymium magnet and a stainless steel yoke. The magnetic assembly is installed onto the shaft of a rotor assembly and once the outer cylindrical magnet is radially magnetized, the inner yoke transmits torque to the rotor shaft. The cylindrically shaped article is used in motor rotors, sensor applications, and holding magnets.
The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation ("GRIs"). General Rule of Interpretation 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relevant section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in order.
In your letter, you suggest that the magnet assembly’s proper classification is subheading 8505.11.0090, which provides for electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization;…of other metals. However, this office disagrees as articles that transmit torque or power meet the terms of heading 8483. Furthermore, a similarly functioning article was classified in heading 8483. See NY ruling I88147, dated November 27, 2002.
Therefore, in accordance with GRI 1, the applicable subheading for the magnetic assembly, part number E1510008439, will be 8483.90.8080, HTSUS, which provides for Transmission shafts and cranks…Other parts; Other; Other; Other; Other. The rate of duty is 2.8 percent ad valorem.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. Subsequently, USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710) and August 16, 2018 (83 F.R. 40823). Products of China that are provided for in subheading 9903.88.01 or 9903.88.02 and classified in one of the subheadings enumerated in U.S. note 20(b) or U.S. note 20(d) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8483.90.8080, HTSUS, unless specifically excluded, are subject to the 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 8483.90.8080, HTSUS, listed above. The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 the 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 Sandra Martinez at Sandra.email@example.com.
Steven A. Mack
National Commodity Specialist Division