CLA-2-84:OT:RR:NC:N1:118
Sandra Tovar
CST, Inc
500 Westpark Drive, Suite 230
Peachtree City, GA 30269
RE: The tariff classification of a spindle housing from China.
Dear Ms. Tovar:
In your letter dated January 30, 2022, on behalf of Big Lift LLC, you requested a ruling on the tariff classification and the applicability of subheading 9817.00.60, Harmonized Tariff Schedule of the United States (HTSUS) for a spindle housing.
The merchandise under consideration is described as a spindle housing, SKU Q211800. You have stated that it is made of machined carbon steel and is used on the cutting deck of lawn mowers. It serves as the outer housing to cover the spindle mower cutting assembly. At the time of importation, the spindle housing has no mechanical components. After importation, the end user will add components to the housing shell to fully assemble the spindle assembly for attachment to the mower under deck. The blade bolts directly to the spindle shaft. A pulley is mounted to the top side of the assembly and driven via a belt. You attest that the spindle housing is an integral part of each lawn mower and is needed for the mower to function.
The applicable subheading for the spindle housing, SKU Q211800, will be 8433.90.1090, HTSUS, which provides for Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading 8437; parts thereof: parts: of mowers for lawns, parks or sports grounds: other. The general rate of duty will be free.
In your submission, you also suggest that the spindle housing be considered for duty-free treatment as agricultural or horticultural machinery under subheading 9817.00.60, HTSUS, which provides for parts to be used in articles provided for in heading 8433, HTSUS. Subheading 9817.00.60, HTSUS, is an actual use provision. To fall within a special classification, a three-part test must be met. First, the subject merchandise must not be excluded from the heading under Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2, HTSUS. Secondly, the terms of the headings must be met in accordance with GRI 1, which provides that classification is determined according to the terms of the headings and any relative section or chapter notes. Thirdly, the article must comply with the actual use regulations under Section 10.131 through 10.139, Customs Regulations (19 C.F.R. §10.131 through §10.139).
U.S. Note 2(t) to Subchapter XVII of Chapter 98, excludes “articles” of heading 8433, HTSUS, but does not exclude “parts” of articles of such heading (see H264768, dated September 7, 2017). As the subject spindle housing is considered a part of an article of heading 8433, HTSUS, the exclusion in Note 2(t) does not apply. Accordingly, the goods satisfy the first part of the test. The spindle housing also satisfies the terms of subheading 9817.00.60, HTSUS, which has two requirements: the article under consideration must 1) qualify as a part; and 2) be used with an article of headings 8432, 8433, 8434, or 8436. Regarding the second requirement of subheading 9817.00.60, HTSUS, lawn mowers are provided for in heading 8433, HTSUS, and therefore the spindle housing is a part to be used in an article provided for in heading 8433, HTSUS. With respect to the first requirement of the subheading, a part must be either: an integral, constituent, or component part, without which the article to which it is to be joined could not function as such article. In this case, the spindle housing is stated to be for use as an integral part of the lawn mowers without which the lawn mowers could not function properly.
Therefore, provided the spindle housing will be actually used in lawn mowers classified in heading 8433, and the documentary requirements of 19 C.F.R. §10.131 through §10.139 can be satisfied, it may qualify for duty-free treatment under 9817.00.60. We note in particular that the importer is responsible for satisfying the documentary requirements, and the spindle housing must be intended for such use at the time of entry and proof thereof must be furnished within three years of the date of entry.
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 Anthony Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division