CLA-2-84:OT:RR:NC:N1:102

Mr. Joseph Labuta
NSK Corporation
4200 Goss Road
Ann Arbor, MI 48105-2799

RE: The tariff classification of pinion shafts from Japan

Dear Mr. Labuta:

In your letter dated June 22, 2009 you requested a tariff classification ruling. Samples were submitted and will be returned as you requested.

The items under consideration are described as planet pinion shafts (Part numbers QN501447, QN502401, 4QN500921A-407K, 4QN501606A-407K and 4QN501262A-407K). You indicate that these pinion shafts are used exclusively in automotive transmission applications. The pinion shafts are parts of the planet gears or gear assembly. They are attached to each planet gear carrier around which the planet gears rotate.

The issue raised by your request is whether the planet pinion shafts are properly classified under heading 8483, Harmonized Tariff Schedule of the United States (HTSUS), as parts of gearing, gear boxes and other speed changers, or under HTSUS heading 8708, as parts of a motor vehicle.

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1 states that classification shall be determined according to the terms of the headings and any relative section or chapter notes. The headings in contention are headings 8708 and 8483, HTSUS. Heading 8708 provides for parts of the motor vehicles of 8701 to 8705. Heading 8483 provides for parts of gearing, gear boxes and other speed changers. While both headings appear to describe the articles in question, classification must be determined in accordance with section and chapter notes. Heading 8708 is within section XVII and chapter 87 of the HTSUS, while heading 8483 is within section XVI and chapter 84. There are three relevant legal notes. Section XVI, note 1(l), HTSUS, excludes articles of section XVII from classification within section XVI. Section XVII, Note 2(e), HTSUS, excludes articles of heading 8483 from section XVII, if the articles constitute integral parts of engines or motors. Note 3 to HTSUS section XVII limits the term "parts" in chapter 87 to include only those parts used solely or principally with the vehicles of chapter 87. Because the planet pinion shafts in question are used “solely or principally” in the motor vehicles of chapter 87, they are "parts" within the meaning of note 3 to HTSUS section XVII. Thus, if the shafts, being articles of HTSUS heading 8483, are not integral parts of engines or motors, then they are articles of HTSUS section XVII and cannot be classified in section XVI. We find that the subject planet pinion shafts are articles of HTSUS section XVII. Accordingly, the transmission shafts are excluded from heading 8483, HTSUS, by note 1(l) to section XVI and fall to be classified in HTSUS heading 8708.

In your ruling request you propose classification of the planet pinion shafts for automotive use in 8708.40.7500 of the Harmonized Tariff Schedule of the United States (HTSUS) which provides for “Parts…of…motor vehicles…: Parts: Other: Other”.

The applicable classification subheading for the planet pinion shafts used in vehicles of Ch.87 will be 8708.99.6890 HTSUS, which provides for “Parts … of … motor vehicles … : Other parts … : Other: Other: Other: Other: Other parts for power trains: Other”. The rate of duty will be 2.5%.

You also indicated that in the future you may import planet pinion shafts for use in non-automotive transmission applications. The applicable subheading for the planet pinion shafts for use in non-automotive transmission applications, unless excluded from HTSUS heading 8483, will be 8483.90.5000, HTSUS, which provides for parts of gearing, gear boxes and other speed changers. The rate of duty will be 2.5 percent ad valorem.

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 World Wide Web at http://www.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 classification of the planet pinion shafts for automotive use, contact National Import Specialist Richard Laman at (646) 733-3017. If you should have any questions regarding the classification of the planet pinion shafts for non-automotive use, please contact National Import Specialist Kenneth T. Brock at (646) 733-3009.

Sincerely,

Robert B. Swierupski
Director
National Commodity Specialist Division