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HQ 966972




October 28, 2004

CLA-RR:CR:GC 966972 RSD

CATEGORY: CLASSIFICATION

TARIFF NO. 8483.60.4040

Mr. Thomas Schillinger
Materials Manager
Horton, Inc.
10840 423rd Avenue
Britton, South Dakota 57430

RE: Truck Engine Cooling Fan Clutches; Revocation of NY I88480, NY I88481, NY I88482, NY I88483, NY I88484, NY I89250, NY I89251, NY I89252, and NY I89253

Dear Mr. Schillinger:

This is in regards to your letter dated November 8, 2002, requesting a ruling concerning the classification of a cooling fan clutch for a internal combustion engine of a medium and heavy-duty truck under the Harmonized Tariff Schedule of the United States (“HTSUS”). In response to this request, on December 6, 2002 and December 11, 2002, the National Commodity Specialist Division (“NCSD”), New York issued a series of rulings, NY I88480, NY I88481, NY I88482, NY I88483, NY I88484, NY I89250, NY I89251, NY I89252, and NY I89253. In these rulings, Customs and Border Protection (CPB) ruled that engine cooling fan clutches were classified in subheading 8708.99.8080, HTSUS. We now believe that the classification of the engine fan clutches indicated in these rulings is incorrect. This ruling sets forth the correct classification of engine cooling fan clutches.

Pursuant to section 625(c)(1) Tariff Act of 1930 (19 U.S.C. 1625(c)(1)) as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, (Pub. L. 103-82, 107 State. 2057 2186), notice of the proposed revocation of NY I88480, NY I88481, NY I88482, NY I88483, NY I88484, NY I89250, NY I89251, NY I89252, and NY I89253 was published on August 18, 2004, in the Customs Bulletin Volume 38 No.34. One comment was received in response to this notice.

FACTS:

In response to the notice, you submitted additional information that corrects some of the factual description of the product that was set forth in our proposed ruling. It is not disputed that the engine fan clutches that are under consideration are used to assist in the cooling of internal combustion engines that are installed in mostly medium and heavy–duty trucks and buses. They utilize the rotational energy of the engine either directly or indirectly via a drive belt to rotate a cooling fan. The cooling fan and the fan clutch draw air through the engine-cooling package. They are capable of engaging and disengaging the fan from the rotational motion of the engine under the direction of sensors that signal the need for cooling.

In your submission, you describe several different types of fan clutches. The drivemaster and the HTS/S are cooling fan clutches that are mounted on the engine and are belt driven. The drivemaster fan has a friction interface and is spring engaged and pneumatically disengaged. It is activated via temperature sensors in the engine cooling system. The HTS/S cooling fan has a friction interface and is pneumatic engaged and is spring disengaged. It is activated via temperature sensors and pneumatic valves. The Drive hub is an engine-mounted bracket with a pulley for direct drive belt engagement and a mounting surface for the fan clutch. The viscous fan clutch is mounted on either a drive hub or the water pump, and it has a viscous fluid interface. A bi-metal strip or electromagnetic solenoid activates it.

When the engine temperature becomes too high, the switch will trigger the fan clutch. This causes the fan clutch to turn the fan, drawing air through the radiator and cool the engine air. The fan clutch ensures that the fan will rotate at just the right speed to keep the engine from overheating and reduces the drive to the fan when it is no longer needed. Without the fan clutch, the fan would not spin at an adequate speed. Thus, the engine would not be sufficiently cooled and it could overheat rather quickly and be damaged.

You have advised us that the description of the product under consideration in the proposed ruling contains certain incorrect information. In the proposed ruling, we stated that the engine cooling fan clutch is a small fluid coupling with a thermostatic device that controls a variable–speed fan. You have advised us that this is incorrect. In your comment, you state that the fan clutch for trucks and buses is large and weighs between fifty and sixty pounds. Furthermore, you explain that it is not mounted directly to the engine crankshaft. Instead, the fan clutch is mounted on the top of the engine, although we correctly indicated that it is belt driven in much the same way the air conditioner is driven.

Previously, Customs and Border Protection (CBP) has issued rulings that classified fan clutches used in motor vehicles in different headings of the HTSUS. In the rulings issued to Horton Inc. concerning engine fan clutches, NY I88480 dated December 6, 2002, NY I88481 dated December 6, 2002, NY I88482 dated December 6, 2002, NY I88483 dated December 6, 2002, NY I88484 dated December 6, 2002, NY I89250 dated December 11, 2002, NY I89251 dated December 11, 2002, NY I89252 dated December 11, 2002, and NY I89253, dated December 11, 2002, CBP classified the engine fan clutches in subheading 8708.99.80, HTSUS, as other, other parts of motor vehicles. In NY A84377 dated July 3, 1996, and NY J88108 dated September 16, 2003, CBP classified fan clutches in subheading 8483.60.40, HTSUS, as clutches.

ISSUE:

Whether the engine cooling fan clutches are classified in heading 8409, as parts suitable for use solely or principally with the engines of heading 8407 or 8408, in heading 8483, as clutches and couplings (including universal joints) or in heading 8708 as parts and accessories of the motor vehicles of heading 8701 to 8705 under the HTSUS.

LAW AND ANALYSIS:

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI’s). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the 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 may then be applied.

The Harmonized Commodity Description And Coding System Explanatory Notes (EN’s) constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the EN’s provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the system. CPB believes the EN’s should always be consulted. See T.D. 8980, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

The HTSUS provisions under consideration are as follows:

8409 Parts suitable for use solely or principally with the engines of heading 8407 or 8408:

Other:

8409.91 Suitable for use solely or principally with spark-ignition internal combustion piston engines (including rotary engines):

8409.91.50 Other.

8483 Transmission shafts (including camshafts and crankshafts) and cranks: bearing housings, housed bearing and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints):

8483.60 Clutches and shaft couplings (including universal joints):

8483.60.40 Clutches and universal joints.

8708 Parts and accessories of the motor vehicles of heading 8701 to 8705:

8708.99 Other:

Other:

8708.99.80 Other.

EN 84.83 (H) states the following:

(H) CLUTCHES

These are used to connect to disconnect the drive at will. They include :

Friction clutches in which rotating discs, rings, cones, etc. with friction surfaces, can be engaged or disengaged; dog (claw) clutches in which the opposing members have projections and corresponding slots; automatic centrifugal clutches which engage or disengage according to the speed of rotation; compressed air clutches; hydraulic clutches; etc.

It is undisputed that the subject merchandise are clutches. The question that must be considered is how the fan clutches that will be attached to truck or bus engines are classified. One of the competing headings 8483, HTSUS, is included in Section XVI. Section XVI Note 1(l) excludes articles of Section XVII from classification in Section XVI. Section XVII provides for “parts and accessories” of motor vehicles in Heading 8708, HTSUS. However, Section XVII, Note 2(e), limits the scope of the terms “parts” and “parts and accessories” by excluding articles of heading 8483 from classification in a heading in Section XVII provided they constitute integral parts of engines or motors. In other words, if the fan clutch is an integral part of an engine, it cannot be classified in heading 8708, HTSUS.

There is no dispute that the fan clutch is a part of the engine because it is dedicated to use solely with the engine, and it has no independent function. Although the fan clutch is a part, the issue that arises is whether it is an “integral part” within the meaning of Section XVII Note 2(e). Neither the HTSUS nor the EN’s provide a definition for the term “integral”. The Merriam-Webster On Line Dictionary gives the following definition for the word integral:

1 a : essential to completeness : Consitutent 2 : composed of integral parts
3 : lacking nothing essential

You question whether the fan clutch should be considered an integral part of the engine. You point out that a truck will operate without a fan clutch but it will run at higher temperatures and that the Horton fan clutches allow trucks to operate at lower temperatures and thereby save fuel. You argue that a truck will not operate without a radiator so the question really is what is considered integral to an engine in order to make it operate as an engine. We believe that the automotive radiators are not analogous to the fan clutches under consideration. Unlike the fan clutches, automotive radiators are not directly mounted onto engines, but are usually connected to an engine through the tubes and engine. Even more significantly, there is a specific provision in the HTSUS in which motor vehicles radiators are classified, subheading 8708.91, HTSUS. In contrast, the HTSUS does not contain a specific provision for fan clutches. Although the proposed ruling provided an imprecise description of the fan clutches regarding their size and how they are mounted to an engine, we believe that this description does not affect the analysis regarding how the fan clutches operate and how they are classified.

We have once again reviewed the information available and we continue to believe that fan clutches are necessary to complete motor vehicle engines. By regulating the speed of the engine fan, the fan clutch ensures that there is a proper airflow to the engine’s cooling system, and thus it helps maintain a proper engine temperature. The engine fan must rotate at the right speed to ensure that the engine reaches an adequate temperature, so that the engine can work efficiently. Even more significantly, if the fan does not rotate at a sufficient speed, the inadequate airflow could quickly cause the engine to overheat, which would severely damage it. In other words, the fan clutch is essential for the engine to function properly.

Although the fan clutch is not an internal part of the engine block, it is our understanding that it is still permanently mounted onto the engine. In HQ 087166, dated November 1, 1990, we ruled that the language of Section XVII Note 2(e) does not require an integral part of an engine be an internal part of the engine block. Based on the fact that the fan clutch is essential to the function of an engine, we conclude that it is necessary to complete an engine and thus it is an integral part of an engine. Therefore, Section XVII, Note 2(e) precludes the fan clutches from being classified in a heading of Section XVII, HTSUS. This means that the fan clutches cannot be classified in Heading 8708, HTSUS, as parts for a motor vehicle. Consequently, we find that NY I 88480, NY I88481, NY I88482, NY I88483, NY I88484, NY I89250, NY I89251, NY I89252, and NY I89253 incorrectly determined that the fan clutches were classified in heading 8708.

In classifying the fan clutches, which are integral parts of internal combustion engines, we apply Section XVI Note 2, which states in pertinent part that parts of machines are to be classified according to the following rules:

(a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8455, 8503 8522, 8529, 8538 and 8548) are in all cases to be classified in the respective headings [Emphasis added];.

(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate

In considering Note 2(a) and Note 2(b), respectively, it is necessary to determine whether the fan clutches at issue can be classified by themselves, or only as parts suitable for use solely or principally with spark-ignition internal combustion piston engines. If the fan clutches are separately classifiable as a product of chapter 84 or 85, Note 2(a) is applicable and they will be classified in their respective heading, regardless of the fact that they are a part of an internal combustion engine. If the fan clutches cannot be classified separately as a product of chapter 84 or 85, then Note 2(b) is applicable and they will be classified under heading 8409, HTSUS as a part of a spark-ignition internal combustion piston engine. Clutches are provided for eo nomine in heading 8483, HTSUS. The engine fan clutches at issue are clutches, and thus, Section XVI Note 2(a) is applicable. Therefore, by application of Section XVI Note 2(a), classification as a part of a motor vehicle engine in heading 8409, is precluded and the engine fan clutches are classified in heading 8483, HTSUS, a heading for clutches. This position is consistent with CBP’s determination in NY A84377 and NY J88108 which correctly determined that the engine fan clutches are classified in subheading 8483.60.40, HTSUS, as clutches.

HOLDING:

The truck engine cooling fan clutches are classified in subheading 8483.60.4040, Harmonize Tariff Schedule of the United States Annotated (HTSUSA) as: Transmission shafts (including camshafts and crankshafts) cranks: bearing housings; clutches and shaft couplings (including universal joints): Clutches and shaft couplings (including universal joints): Clutches and universal joints: Clutches. The general, column one rate of duty for the fan clutches is 2.8 percent ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUSA and the accompanying duty rates are provided on the World Wide Web at www. usitc.gov.

EFFECT ON OTHER RULINGS:

NY I 88480 dated December 6, 2002, NY I88481 dated December 6, 2002, NY I88482 dated December 6, 2002, NY I88483, dated December 6, 2002, NY I 88484 dated December 6, 2002, NY I89250, dated December 11, 2002, NY I89251 dated December 11, 2002, NY I89252 dated December 11, 2002, and NY I89253, dated December 11, 2002 are revoked.

Sincerely,

Myles B. Harmon, Director
Commercial Rulings Division


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