N296744 N2 Ruling Active

The tariff classification of a transfer case from Mexico

Issued May 29, 2018 by U.S. Customs and Border Protection.

Tariff classification

HTS codes: 8708.99.6890

Headings: 8708

Product description

Descriptive literature and diagrams were submitted with your request. The item under consideration is an Active Transfer Case (ATC), Part Number M0041438, used in motor vehicles, specifically full-size trucks and large SUVs. The function of the ATC is to transfer the engine torque to the front and rear axles in order to create four-wheel-drive within the powertrain system. It is essential in maintaining the proper tire rotation in four-wheel-drive vehicles as it improves traction, which leads to greater vehicle stability.

Full text

N296744 May 29, 2018 CLA-2-87:OT:RR:NC:N2:206 CATEGORY: Classification TARIFF NO.: 8708.99.6890 Elaine Judy Magna Powertrain of America, Inc. 1235 E. Big Beaver Rd. Troy, MI 48083 RE: The tariff classification of a transfer case from Mexico Dear Ms. Judy: In your letter dated May 4, 2018, you requested a tariff classification ruling. Descriptive literature and diagrams were submitted with your request. The item under consideration is an Active Transfer Case (ATC), Part Number M0041438, used in motor vehicles, specifically full-size trucks and large SUVs. The function of the ATC is to transfer the engine torque to the front and rear axles in order to create four-wheel-drive within the powertrain system. It is essential in maintaining the proper tire rotation in four-wheel-drive vehicles as it improves traction, which leads to greater vehicle stability. You state that the ATC is mounted behind the main transmission and is a component of the powertrain assembly. In your letter, you suggested that the correct classification subheading of the ATC is 8708.99.6890, Harmonized Tariff Schedule of the United States (HTSUS). This office agrees. This decision is also confirmed by Headquarters Ruling Number HQ 967791, dated 09/30/2005. The applicable classification subheading for the Active Transfer Case (Part Number M0041438) will be 8708.99.6890, HTSUS, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories: Other: Other: Other: Other: Other parts of power trains: Other.” The applicable duty rate will be 2.5% ad valorem. 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 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, please contact National Import Specialist Liana Alvarez at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division

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