CLA-2-87:OT:RR:E:NC:N1:101
Ralph Garcia, Manager-International Trade Compliance
Mitsubishi Motors North America, Inc.
6400 Katella Avenue
Cypress, CA 90630-5208
RE: The tariff classification of a torque converter from Japan
Dear Mr. Garcia,
In your letter dated November 6, 2008, you requested a tariff classification ruling.
The item under consideration is identified as a Torque Converter (Part # MD762277). The torque converter is a round, coupling device consisting of the impeller, stator and turbine, that coordinates and transmits the power, or “torque”, necessary to move the vehicle to the driveshaft. The torque converter fits in a cavity within the transmission housing, typically referred to as the “bell housing”.
In your ruling you propose classification of the torque converter in subheading 8708.99.6890 of the Harmonized Tariff Schedule of the United States (HTSUS) which provides for “Parts…of…motor vehicles…: Other parts…: Other: Other: Other: Other: Other parts for power trains: Other.”
The current Road & Track Illustrated Automotive Dictionary defines “torque converter” as “In an automatic transmission (emphasis added), three vaned elements – the impeller, turbine, and stator – rotating in a fluid-filled housing that serve as a hydraulic clutch to transmit and multiply engine torque and to cushion the flow of power.”
The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs. EN 87.08 says, “Parts…of this heading include: (D) Gear boxes (transmissions) of all types…; torque converters; gear box (transmission) casings…etc.”
Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1. states “ ... classification shall be determined according to the terms of the headings ... ”. Heading 8708 of the HTSUS provides for “Parts…of…motor vehicles… .”
General Note 3. (h) (vi) to the HTSUS states “ ... a reference to “headings” encompasses subheadings indented thereunder.” Subheading 8708.40 of the HTSUS provides for “Parts…of…motor vehicles…: Gear boxes and parts thereof”.
The applicable classification subheading for the Torque Converter (Part # MD762277) will be 8708.40.7500, HTSUS, which provides for “Parts…of…motor vehicles…: Gear boxes and parts thereof: Parts: Other: Other.” The rate of duty will be 2.5%.
Duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the World Wide Web at http://ww.usitc.gov /tata/hts/.
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 Richard Laman at 646-733-3017.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division