The tariff classification of a wheel end disconnect from China.

N310817 April 13, 2020 CLA-2-87:OT:RR:NC:N2:206 CATEGORY: Classification TARIFF NO.: 8708.99.6890; 9903.88.03 David Salkeld Arent Fox, LLP 1717 K Street, NW Washington, DC 20006 RE: The tariff classification of a wheel end disconnect from China. Dear Mr. Salkeld: In your letter dated March 20, 2020, you requested a tariff classification ruling on behalf of your client Warn Automotive, LLC. Pictures and descriptive literature were provided with your request. The item under consideration has been identified as an Integrated Wheel End (IWE) Housing for use in passenger vehicles. An IWE system is located at the end of a motor vehicle front drive-axle, and functions to engage or disengage the front wheel hubs from the axle when a driver shifts between driven and passive modes of wheel movement, as in two and four-wheel drive modes. The IWE housing is a component of the IWE system, along with parts such as an actuator, clutch ring, vacuum diaphragm, and spring. It is made of die-cast aluminum, is disc-shaped, and has a diameter of 132 millimeters, thickness of 32 millimeters, and weight of 550 grams. You state that it only operates on front drive-axles with differentials. You suggested classifying the IWE housing within subheading 8708.50, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts of motor vehicle drive axles with differentials. To be a "part" for tariff purposes, an article must be necessary to the completion of some other article. It must be an integral, constituent or component part, without which the article to which it is to be joined could not function as that article. The drive axle is complete without the IWE system or its housing. As a result, it is not a part of the drive axle. Since the IWE housing is used with the drive axle and the wheel hub, it is a part of a motor vehicle powertrain. The applicable subheading for the IWE Housing 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 rate of duty will be 2.5% ad valorem. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8708.99.6890, HTSUS, unless specifically excluded, are subject to an 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 8708.99.68.90, HTSUS, listed above.   The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading.  For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively. 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 liana.alvarez@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division