The tariff classification of a timing gear package from Japan

NY D82751 October 23, 1998 CLA-2-84:RR:NC:1:102 D82751 CATEGORY: Classification TARIFF NO.:8483.90.1050 Mr. O'Neil L. Woelke, Jr. Office of the General Counsel Chrysler Corporation 1000 Chrysler Drive Auburn Hills, MI 48326-2766 RE: The tariff classification of a timing gear package from Japan Dear Mr. Woelke: In your letter dated September 17, 1998 you requested a tariff classification ruling on behalf of the Chrysler Corporation. The item in question is a "2.6 Timing Gear Package" for use in the repair of Mitsubishi 2.6 liter gasoline engines used in Chrysler vehicles. The package is described as a repair kit and contains the chain sprockets, roller chain, guides, gaskets and bolts necessary to replace the engine's timing system. A sample and descriptive literature were submitted. You indicate that the contents of the timing gear package originate in Japan and are imported together as complete repair kits. The kits are not repackaged prior to reaching the end user which may be either a Chrysler service center, an unrelated service center or an individual. The components of the kit are all used together to replace the timing system on a Chrysler K or S body vehicles. You maintain that because each kit consists of at least two different articles classifiable in different headings of the Harmonized Tariff Schedule of the United States (HTSUS), contains articles put up together to meet a particular need, and is packaged in a manner suitable for retail sale, it constitutes goods put up in sets for retail sale. Further, under the criteria of General Rule of Interpretation (GRI) 3(b), HTSUS, which provides that such goods are classifiable according to the component which gives them their essential character, you maintain the entire set falls to be classified in HTSUS subheading 7315.11.00 as roller chain for motor vehicles. We agree that the timing gear package constitutes goods put up in sets for retail sale, but under the criteria of GRI 3(b), HTSUS, we find that it is not the chain which imparts essential character to the set. You assert that the chain is of central importance to the set, because it interfaces with the chain sprockets to transmit rotary power. However, the purpose of an engine's timing system is not only to transmit rotary power, but more importantly to maintain an exact speed ratio between the rotation of the crankshaft and the camshaft. While we find that the chain and chain sprockets contribute equally to the transmission of power, it is the chain sprockets which establish the desired speed ratio and thus provide the "timing" for the engine. We also note that the cost breakdown provided for the timing package indicates that the cost attributed to the chain sprockets exceeds that of the other components. Accordingly, we find the entire set falls to be classified in HTSUS heading 8483, which provides for parts of gears and gearing. The applicable subheading for the timing gear package will be 8483.90.1050, HTSUS, which provides for other chain sprockets. The rate of duty will be 3.4 percent ad valorem. It is the opinion of this office that the roller chain contained in the timing gear package would be subject to anti-dumping margins under current Department of Commerce orders related to roller chain. Please contact your local port for the specific case numbers and percentages for each case. If you desire a binding ruling on the applicability of either anti-dumping or countervailing duty to your product, please write directly to the Office of Compliance, Department of Commerce, Washington, D.C. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 Kenneth T. Brock at 212-466-5493. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division