Gears; gears for use in motor vehicles; parts of motor vehicles designed for the transport of persons; parts of motor vehicles of heading 8703; Section VII, Note 2(e); Section XVII, Note 3; Section XVI, Note 1(l)

HQ 088041 January 14, 1991 CLA-2 CO:R:C:G 088041 JMH CATEGORY: Classification TARIFF NO.: 8708.99.50 Mr. Alberto Vargas Aviles General Manager Engranes Conicos, S.A. De C.V. Fraccionamiento Industrial Benito Juarez Apartado Postal No. 595 Queretaro, QRO. MEXICO RE: Gears; gears for use in motor vehicles; parts of motor vehicles designed for the transport of persons; parts of motor vehicles of heading 8703; Section VII, Note 2(e); Section XVII, Note 3; Section XVI, Note 1(l) Dear Mr. Aviles: This is in response to your September 19, 1990 request for a classification ruling for certain automotive gears manufactured in Mexico. FACTS: The articles in question are hypoid and bevel gears for drive axles. The gears are actually a ring gear and drive pinion assembly that is to be assembled into the drive axle assembly. The gears are manufactured in Mexico from steel SAE 8620 with chromium, nickel and molybdenum. Ford, General Motors, Chrysler, Toyota and Nissan incorporate the gears into the front and rear drive axles of pick-up trucks and passenger motor vehicles up to a maximum of three tons. ISSUE: Whether the imported gears are properly classified as "...gears and gearing..." under heading 8483, Harmonized Tariff Schedule of the United States Annotated ("HTSUSA"), or as "parts and accessories of the motor vehicles of headings 8701 to 8705..." under heading 8708, HTSUSA. -2- LAW AND ANALYSIS: The classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation ("GRIs"). GRI 1, HTSUSA, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes..." The headings in contention are headings 8483 and heading 8701, HTSUSA. These headings describe the following: 8483 Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearings; ball 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... * * * * * * * * * * * * * 8708 Parts and accessories of the motor vehicles of heading 8701 to 8705... Both headings 8483 and 8708 appear to describe the gears in question. However, before a final determination may be made the section and chapter notes must be examined. Heading 8483 is within Section XVI and Chapter 84, HTSUSA. Heading 8708 is within Section XVII and Chapter 87, HTSUSA. There are three relevant legal notes. Section XVI, Note 1(l), HTSUSA, excludes articles of Section XVII from classification within Section XVI. Section XVII, Note 2(e), HTSUSA, states that articles of heading 8483 are excluded from Section XVII if the articles constitute integral parts of engines or motors. Section XVII, Note 3, HTSUSA, requires that the term "parts" in chapter 87 refers only to parts which are used solely or principally with the articles of chapter 87. You state that the gears are used solely with motor vehicles designed for the transport of persons. Since the gears are used "solely or principally" with motor vehicles and motor vehicles are classified in chapter 87, the gears are "parts" within the meaning of Section XVII, Note 3. Motor vehicles designed for the transport of persons are classified under heading 8703, HTSUSA. As a part that is solely or principally used with articles of heading 8703 the gears meet the terms of heading 8708. Furthermore, Section XVII, Note 2(e) only excludes articles of heading 8483 which are parts of engines and motors from -3- Section XVII. Since the gears in question are not used with engines or motors, they are not excluded from Section XVII by Note 2(e). The gears are clearly articles of Section XVII. Articles of Section XVII are excluded from classification within Section XVI under heading 8483 by Section XVI, Note 1(l). The gears in question are used solely or principally as parts of motor vehicles which are designed to transport people. The gears are properly classified under heading 8708. The classification for the gears is subheading 8708.99.50, HTSUSA, as "Parts and accessories of the motor vehicles of heading 8701 to 8705...Other parts and accessories...Other...Other..." HOLDING: The gears imported from Mexico are used solely or principally with motor vehicles which are designed for the transports of persons. Such motor vehicles are classified in heading 8703. The gears are "parts" within the meaning of Section XVII, Note 3. As a part that is solely or principally used with articles of heading 8703 the gears are classified under heading 8708, in accordance with GRI 1. The proper classification for the gears is subheading 8708.99.50, HTSUSA, as "Parts and accessories of the motor vehicles of heading 8701 to 8705...Other parts and accessories...Other...Other..." Sincerely, John Durant, Director Commercial Rulings Division