OT:RR:NC:N1:102
Queenie Zhong
Broad Falcon Co., Ltd.
189 Moo 4, Map Phai, Ban Bueng District
Chon Buri 20170
Thailand
RE: The classification and country of origin of an Engine Timing Chain Kit
Dear Ms. Zhong:
In your letter dated August 6, 2025, you requested a ruling on a timing chain kit. Descriptive information was
provided with the submission.
The item under consideration is a Timing Chain Kit, item 9-4201SA. The items in the kit, which are
packaged together ready for retail sale, are used to replace the timing system of an internal combustion
engine used in motorized vehicles (sedans, sport utility vehicles, crossover utility vehicles, minivans and
cargo vans). The repair kit consists of a timing chain guide, a chain tensioner, an engine tensioner guide, a
crankshaft sprocket, an oiler and a timing chain.
The repair kit, which constitutes goods classified in two or more headings, is put up in a set ready for retail
sale. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with
General Rule of Interpretation (GRI) 3, Harmonized Tariff Schedule of the United States (HTSUS). GRI 3(a)
states in part, when two or more headings each refer to part only of the materials or substances contained in
mixed or composite goods, those headings are to be regarded as equally specific, even if one heading gives a
more precise description of the good. Goods classifiable under GRI 3(b) are classified as if they consisted of
the material or component which gives them their essential character, which may be determined by the nature
of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in
relation to the use of the article.
Here, the purpose of a timing system is to transmit rotary power, and more importantly to maintain an exact
speed ratio between the rotation of the crankshaft and the camshaft. It is the chain sprocket, which is forged
of steel material, that imparts the essential character, as it establishes the desired speed ratio to maintain the
timing of the engine. In accordance with GRI 3(b), we find the entire set is classified within heading 8483,
which provides for gears and gearing.
The applicable subheading for the timing chain kit will be 8483.90.1010, HTSUS, which provides for
Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and
plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including
torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including
universal joints); parts thereof: Toothed wheels, chain sprockets and other transmission elements presented
separately; parts: Chain sprockets and parts thereof: Forged. The general rate of duty is 2.8 percent ad
valorem.
With respect to origin, you explain that the items in the kit are from China, except for the timing chain, which
is sourced in Thailand. In Thailand, the items are packaged together in an inner box and then an outer box.
When determining the country of origin for purposes of applying current trade remedies under Section 301
and additional duties, the substantial transformation analysis is applicable. See, e.g., Headquarters Ruling
Letter H301619, dated November 6, 2018. The test for determining whether a substantial transformation will
occur is whether an article emerges from a process with a new name, character, or use different from that
possessed by the article prior to processing. See Texas Instruments Inc. v. United States, 681 F.2d 778
(C.C.P.A. 1982). This determination is based on the totality of the evidence. See National Hand Tool Corp. v.
United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
As the items in the repair kit are packaged together in Thailand, we defer to the guidance provided on the
CBP website in “CBP Section 301 Trade Remedies Frequently Asked Questions.” The answer to “How are
the Section 301 duties assessed in respect to sets packaged for retail sale, which contain components covered
by the Section 301 remedy,” reads, in pertinent parts, as follows: When importing goods put up in sets for
retail sale (in accordance with General Rule of Interpretation 3) that contain articles subject to the Section
301 remedy, if the product that imparts the essential character to the set (i.e., the HTSUS provision under
which the entire set is classified) is covered by the Section 301 remedy, then the entire set will be subject to
the additional duties. If the HTSUS provision under which the entire set is classified is not covered by the
Section 301 remedies, but the set contains components that are classified in a subheading covered by the 301
list, the 301 duties will not be assessed on the individual components. In following this guidance, the chain
sprocket, which is sourced in China, imparts the essential character of the kit. Accordingly, the country of
origin of the repair kit for Section 301 Trade Remedies and additional duties is China.
Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and
Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings
9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate
of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e., 9903.01.24 in addition
to subheading 8483.90.1010, HTSUS, listed above.
Effective April 5, 2025, Executive Orders implemented Reciprocal Tariffs. All imported merchandise must
be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time, products from China will be
subject to an additional 10 percent ad valorem rate of duty. At the time of entry, you must report the Chapter
99 heading applicable to your product classification, i.e., 9903.01.25, in addition to subheading
8483.90.1010, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 9903.88.01, HTSUS, unless specifically excluded, are subject to an 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 8483.90.1010, HTSUS, listed above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 at https://hts.usitc.gov/.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection
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 Sandra Martinez at [email protected].
Sincerely,
(for)
James Forkan
Acting Director
National Commodity Specialist Division