The tariff classification of a Power Transfer Unit

 N258075 October 30, 2014 CLA-2-87:OT:RR:NC:N1:106 CATEGORY: Classification TARIFF NO.: 8708.40.1110 Kristen Gibson, Senior Manager Global Trade Compliance American Axle Manufacturing, Inc. 1 Dauch Drive Detroit, MI 48211-1115 RE: The tariff classification of a Power Transfer Unit Dear Ms. Gibson: In your letter dated October 10, 2014, you requested a tariff classification ruling. The item under consideration has been identified as a Power Transfer Unit (PTU), which is a set of gears consisting of a housing, input shaft, helical input gear, gear and pinion gear set, intermediate shaft, a clutch collar and a smart linear actuator. The linear actuator allows the PTU to engage and disengage its gears and transfer torque to the vehicle’s drive-shaft and into the rear drive module (RDM) and rear wheels. You state in your letter that the PTU is a new technology that improves fuel economy by disengaging rotating parts of the driveline when not in use, and disconnecting the PTU and RDM when in front-wheel drive mode. The PTU can either be manually or automatically activated by an electronic control unit under adverse weather conditions. The applicable subheading for the PTU will be 8708.40.1110, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Gear boxes and parts thereof: Gear boxes: For the vehicles of subheading 8701.20 or heading 8702, 8703 or 8704: For vehicles of heading 8703.” 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). 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