H319996

HQ H319996 April 10, 2023 CLA-2 OT:RR:CTF:EMAIN H319996 SKK CATEGORY: Classification and NAFTA TARIFF NOs.: 8501.10.60; 8501.31.20 Director Electronics Center of Excellence and Expertise U.S. Customs and Border Protection 301 E. Ocean Blvd., Suite 600 Long Beach, CA 90831 Attn: Import Specialist Sherill Stevens Re: Application for Further Review (AFR) of Protest No. 2402-19-100089 (lead); electro- mechanical actuators; drive shift actuators; vehicle seat actuators: NAFTA parts exclusion Dear Director: The following is our decision regarding the Application for Further Review (“AFR”) of Protest No. 2402-19-100089 (“lead” Protest), timely filed on February 27, 2019, on behalf of Stoneridge Electronics, Inc. (“Stoneridge” or “Protestant”). The AFR concerns the classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) of electro-mechanical actuators used in automotive applications and whether the “parts” exception to the North American Free Trade Agreement (“NAFTA”) tariff shift rule also applies to instant merchandise. The AFR was forwarded to this office for consideration. Attorneys from this office participated in a teleconference with Counsel and Protestant’s Mexico Production Manager on February 3, 2023, as well as with Counsel on March 23, 2023. Counsel also submitted supplemental information to this office, dated March 31, 2023. This decision takes into consideration information presented in both Protestant’s written and oral submissions. This Protest covers merchandise entered at the Port of El Paso between March 5 and March 29, 2018, and liquidated between February 1 and February 22, 2019, under subheading 8501.10.40, HTSUS, which provides for “[E]lectric motors and generators (excluding generating sets): Motors of an output not exceeding 37.5 W: Of under 18.65 W: Other.” This AFR also addresses protests of substantially similar merchandise that are suspended pending determination of lead Protest No. 2402-19-100089. Protestant’s submission (Attachment A) in support of this AFR identifies over 40 related pending Protests (Attachment A). Protestant seeks classification of the actuators used with four-wheel drive (“4WD”) vehicle drive trains under heading 8708, specifically subheading 8708.50.89, HTSUS, which provides for “[P]arts and accessories of the motor vehicles of headings 8701 to 8705: Drive-axles with differential, whether or not provided with other transmission components, and non-driving axles; parts thereof: Parts: For vehicles of heading 8703: Other.” Alternatively, Protestant seeks classification of the 4WD actuators under HTSUS headings 8479, 8536, 8541, and 8543. Protestant seeks classification of the vehicle seat actuators under subheading 8708.29.50, HTSUS, which provides for “[P]arts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories of bodies (including cabs): Other: Other” or, alternatively, under heading 9401, HTSUS. FACTS: The merchandise at issue consists of several models of electro-mechanical actuators for use in automotive applications. The subject 4WD actuators create mechanical force to move a vehicle’s drive train. The vehicle seat actuators create mechanical force to move a vehicle’s seat. Both are similar in design, except that the 4WD actuator also features a shift fork mechanism. The subassemblies comprising both actuators are assembled separately and combined into the finished housing in Mexico prior to importation into the U.S. 4WD actuator The subject 4WD actuators consist of several components and subassemblies combined in a single enclosure. The first subassembly contains an electric motor, a control printed circuit board assembly (“PCBA”), gearing and other components. The second subassembly contains a plunger, control spring, drive screw, position control circuitry and a shift fork. The subject 4WD electro-mechanical actuator is referenced by the Protestant as the “Front Axle Disconnect Actuator” (model #’s 16-900/16-901). The 4WD actuator mounts to a center disconnect assembly, which is mounted on the front axle. It functions in a sealed housing to convert electrical energy from the vehicle’s electrical system into linear mechanical force. This linear force is used to move a shift collar in the axle disconnect assembly from the two-wheel drive (“2WD”) to 4WD position. The 4WD actuator also provides block shift compensation, internal positioning control (internal logic and switching circuitry controls start/stop at the expected 2WD and 4WD end positions), and provides output feedback (output signal to the vehicle controller indicates when the move from 2WD to 4WD position is completed). Vehicle seat actuator The subject vehicle seat actuator includes an electric motor, gearing, a spring tensioner, and a movement control wire that attaches to the seat. When the operator presses a control button, the control wire is retracted or extended, in conjunction with a separate spring mounted in the seat frame, and the seat is unlocked. The retraction or extension of the wire results from reversal in the polarity of the motor, depending on the control button position being controlled by the driver. ISSUE: What is the proper classification of the subject electro-mechanical actuators? LAW AND ANALYSIS: This matter is protestable under 19 U.S.C. 1514(a)(2) as a decision on classification. The protest was timely filed on February 27, 2019, within 180 days of liquidation, pursuant to 19 U.S.C. 1514(c)(3). Further Review of Protest No. 2402-19-100089 is properly accorded pursuant to § 174.24(b) of Title 19 of the Code of Federal Regulations (19 C.F.R. § 174.24(b)), as this protest is alleged to involve questions of law or fact that have not been ruled upon by the Commissioner of CBP or his designee or by the customs courts. Classification: Classification under the HTSUS is in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods will be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 will then be applied in order. The 2018 HTSUS provisions under consideration are set forth below: 8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: 8501 Electric motors or generators (excluding generating sets): 8541 Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED); mounted piezoelectric crystals; parts thereof: 8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: 8708 Parts and accessories of the motor vehicles of headings 8701 to 8705: 9401 Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Section XVI Note 1(l) excludes “[A]rticles of section XVII.” Section XVII Note 2(f) states that the expressions "parts" and "parts and accessories" do not apply to “[E]lectrical machinery or equipment (chapter 85).” The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). The General EN to Section XVII (III) provides, in pertinent part: (III) PARTS AND ACCESSORIES * * * * * It should, however, be noted that these headings apply only to those parts or accessories which comply with all three of

This matter is protestable under 19 U.S.C. 1514(a)(2) as a decision on classification. The protest was timely filed on February 27, 2019, within 180 days of liquidation, pursuant to 19 U.S.C. 1514(c)(3). Further Review of Protest No. 2402-19-100089 is properly accorded pursuant to § 174.24(b) of Title 19 of the Code of Federal Regulations (19 C.F.R. § 174.24(b)), as this protest is alleged to involve questions of law or fact that have not been ruled upon by the Commissioner of CBP or his designee or by the customs courts. Classification:Classification under the HTSUS is in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods will be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 will then be applied in order. The 2018 HTSUS provisions under consideration are set forth below:8479    Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof:8501 Electric motors or generators (excluding generating sets): 8541 Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED); mounted piezoelectric crystals; parts thereof:8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof:8708 Parts and accessories of the motor vehicles of headings 8701 to 8705: 9401 Seats (other than those of heading 9402), whether or not convertible into beds, and parts thereof: Section XVI Note 1(l) excludes “[A]rticles of section XVII.”Section XVII Note 2(f) states that the expressions "parts" and "parts and accessories" do not a