CLA-2-87:OT:RR:NC:N1:106
Young-bin Oh
Hyundai Motor Company
231, Yangjae 2-dong
Seocho-gu, Seoul ASI/KR/KS013
South Korea
RE: The tariff classification of an inner race from South Korea
Dear Mr. Oh,
In your letter dated October 1, 2015, you requested a tariff classification ruling.
The item under consideration has been identified as an Inner Race (Item Code 456903B810). You state in your request that the Inner Race, which is used in a passenger vehicle is a component of an Over Drive Clutch and a One Way Clutch. When fully assembled, it transmits the driving force when the vehicle is in overdrive, first gear or reverse. It is constructed of steel and measures approximately 200 millimeters (mm) in diameter.
You suggested that the Inner Race be classified in subheading 8708.40, Harmonized Tariff Schedule of the United States (HTSUS) which provided for “Parts and accessories of the motor vehicles of heading 8701 to 8705: Gear boxes and parts thereof…” This office disagrees with the proposed classification.
General Rule of Interpretation, HTSUS, (GRI) 1 states in part that for legal purposes,
classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6. GRI 3(a) states in part that when goods are, prima facie, classifiable under two or more headings the heading which provides the most specific description shall be preferred to headings providing a more general description. GRI 6 states, in part, that goods are classifiable in the subheadings of a heading according to the terms of those subheadings and any related subheading notes and, by appropriate substitution of terms, to GRIs 1 through 5, on the understanding that only subheadings at the same level are comparable. A clutch is a mechanism that engages and disengages the engine’s flywheel from the drive shaft as gears shift through the transmission. When used with a manual transmission, a clutch assembly is a separate unit located between the rear of the engine block and the transmission. Automatic transmissions, however, utilize a type of fluid coupling called a torque converter to couple the engine and the gearbox incorporated in the transmission. The gearbox contains a set of planetary gears, with clutches and brake pads for engaging the desired gears.
Articles that disengage the engine automatically as the gears change perform the function of a clutch and are within the common and commercial meaning of that term. In addition, for purposes of subheading 8708.93 the provision for clutches describes a commodity “eo nomine”, by name. Normally, an “eo nomine” designation, without limitation, or a shown contrary legislative intent or judicial decision will include all forms of the named article. Therefore, when comparing subheadings within heading 8708, GRI 3(a), HTSUS, applied at the subheading level through GRI 6, authorizes classification in the subheading providing the most specific description. Thus, in classifying the inner race as parts of clutch assemblies for automatic transmissions, the subheading description for clutches and parts thereof, other, is more specific than parts of gearboxes.
The applicable classification subheading for the Inner Race (Item Code 456903B810) will be 8708.93.7500, HTSUS, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories: Clutches and parts thereof: For other vehicles: Clutches: Other.” The general rate of duty will be 2.5 percent.
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://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 ruling, please contact National Import Specialist Liana Alvarez at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division