The tariff classification of a Carrier Housing Assembly from Germany

N332712 May 17, 2023 CLA-2-87:OT:RR:NC:N:2:206 CATEGORY: Classification TARIFF NO.: 8708.99.6890 James MacNeill MacNeill Classification Compliance PO Box 1214Bristol, CT 06011 RE: The tariff classification of a Carrier Housing Assembly from Germany Dear Mr. MacNeill: In your letter dated May 4, 2023, you requested a tariff classification ruling on behalf of your client, Daimler Truck North America. The articles under consideration are a Carrier Housing Assembly and the same Carrier Housing Assembly without its motor(s) installed. These assemblies are components of an integrated electric axle designed to replace the traditional powertrain on a heavy-duty truck. The Carrier Housing Assembly consists of either one or two separate AC electric motors (depending on E-axle version) which are independent from the gearing, and thus can be easily removed from the system for replacement or servicing. In the version with only one motor installed, a block-off plate is installed to cover the empty motor chamber. It has a multi-speed, shiftable planetary gear set which functions as a multi-speed gearbox and a drive-axle differential. The Carrier Housing Assembly also contains a heat exchange oil cooling module, engine and transmission coolant lines, oil pump and oil filter, temperature and speed sensors, electrical wire harness, high voltage connections and electrical busbar. The electric motor/gearbox uses its own, separate oil circuit which is sealed off from the differential and axle, allowing each section to use different grades and types of lubricants. In your request, you discussed possible classification of the assemblies in heading 8501, Harmonized Tariff Schedule of the United States (HTSUS), as electric motors, and subheading 8708.50, HTSUS, as drive axles with differential. However, as you noted, none of these are applicable to the assemblies at issue. HQ Ruling 962289, dated 6/24/1999 and NY N329827, dated 12/27/2022 were cited to exclude the assemblies from heading 8501, HTSUS, and subheading 8708.50, HTSUS. The applicable subheading for the Carrier Housing Assembly with or without its motor(s) 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. 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 at https://hts.usitc.gov/current This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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