The tariff classification of engine exhaust mufflers from China.

N305543 August 22, 2019 CLA-2-84:OT:RR:NC:N1:118 CATEGORY: Classification TARIFF NO.: 8424.90.9080; 8433.90.1090; 9817.00.60; 9903.88.03 Mr. Rick Van Arnam Barnes, Richardson & Colburn, LLP 100 William Street Suite 305 New York NY 10038 RE: The tariff classification of engine exhaust mufflers from China. Dear Mr. Van Arnam: In your letter dated July 31, 2019, you requested a tariff classification ruling on behalf of your client, Catalytic Combustion Corporation. The merchandise under consideration is described as mufflers designed to fit small gasoline powered, spark ignition internal combustion piston engines of less than 25 horsepower. You have requested the classification of seven different muffler models: MFCH 0558, MFCH 0558R, MFCH 1250, MFCH 1406, MFCH 0962, MFCH 1251 and MFCH 0964. You state in your submission that models MFCH 0558 and MFCH 0558R are specifically designed for engines used in pressure washers and sprayers. The mufflers contain specific measurements and shapes, designed to customer specifications, to include precise performance characteristics, such as backpressure and sound.   It is further stated that models MFCH 1250, MFCH 1406, MFCH 0962, MFCH 1251 and MFCH 0964 are specifically designed for engines used in lawn mowers. The mufflers contain specific measurements and shapes, designed to customer specifications, to include precise performance characteristics, such as exhaust pipes that are specifically threaded. The applicable subheading for the muffler models MFCH 0558 and MFCH 0558R will be 8424.90.9080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines; parts thereof: Parts: Other: Other.  The rate of duty will be free. The applicable subheading for the muffler models MFCH 1250, MFCH 1406, MFCH 0962, MFCH 1251 and MFCH 0964 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. Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings. Products of China classified under subheading 8424.90.9080, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8424.90.9080, HTSUS, listed above. The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading. In your submission, you also request that the muffler models (MFCH 1250, MFCH 1406, MFCH 0962, MFCH 1251 and MFCH 0964) used with lawn movers 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 CFR 10.131 through 10.139). Articles provided for in heading 8433 are excluded from subheading 9817.00.60 pursuant to U.S. Note 2(t) to Subchapter XVII of Chapter 98. While the instant mufflers are considered parts of an article of heading 8433, HTSUS, the exclusion in Note 2(t) refers only to “articles” and not “parts”. Therefore, the lawn mower mufflers at issue do not fall within the exclusions enumerated in Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2, and thus satisfy the first part of the test. The instant mufflers also satisfy the terms of subheading 9817.00.60, which has two parts to it: the article under consideration must 1) qualify as a part; 2) to be used with an article of headings 8432, 8433, 8434, or 8436. In regard to the second part of subheading 9817.00.60, lawn mowers are provided for in heading 8433, HTSUS, and therefore the lawn mower mufflers are parts to be used in an article provided for in heading 8433, HTSUS. With respect to the first part 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 mufflers are stated to be for use as integral parts of the lawn mowers without which the lawn mowers could not function. Nonetheless, we also note that the mufflers will first be placed in engines and Catalytic Combustion’s customers will ultimately decide where the engines will be used, whether in the lawn mowers or other types of machinery. Therefore, provided the mufflers will be actually used in lawn movers classified in heading 8433, and the documentary requirements of 19 CFR 10.131 through 10.139 can be satisfied, they 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 muffler 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 E. Grossi at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division