CLA-2 OT:RR:CTF:TCM H021026 JER
Port Director
Port of Chicago
U.S. Customs & Border Protection
9915 Bryn Mawr
Rosemont, IL 60018
RE: Protest No. 3901-2007-101454; Classification of Hollow Stainless Steel Balls
Dear Port Director:
The following is our decision regarding the Application for Further Review (“AFR”) of Protest No. 3901-2007-101454, timely filed on behalf of Craig Technologies, Inc., concerning the classification of hollow stainless steel balls used in directional water flow control valves. In reaching our decision herein, we have taken into consideration information provided to this office on November 16, and December 16, 2009.
FACTS:
The subject merchandise is described as hollow polished steel balls used in directional water flow control valves for dishwashers. The hollow stainless steel balls (hereinafter “hollow S.S. balls”) will be fitted inside a “Y” shaped plastic housing of the directional control valves and flanked by magnets on either side, which are used as a switch to move the ball back and forth inside the valve. The hollow structure facilitates a specific weight requirement which allows the balls to move and function correctly inside the “Y” shaped housing. A magnetic pull causes the ball to “block” the port (or water way) thereby directing the flow of water to various washer arms and high pressure nozzles.
According to the drawing specifications provided by Protestant, the ball diameter tolerance is plus or minus (+/-) 0.15 mm while the spherical roundness measures +/- 0.025 mm and the actual ball size is 25.27 mm. The CBP Lab described the balls as having an average diameter of 25.376 mm close to the nominal one inch ball (25.40 mm) in Table 5 of the American Bearing Manufacturers Association (ABMA) Standard 10A.
Between December 13, 2006, and August 16, 2007, the subject merchandise was entered under heading 8481, HTSUS, as parts of valves. Between August 3, 2007, and October 5, 2007, the Port of Chicago liquidated the subject merchandise under subheading 8482, HTSUS, as parts of ball bearings made up of alloy steel, pursuant to Note 6 to Chapter 84, HTSUS. The Protest and AFR were filed on November 1, 2007.
ISSUE:
Whether the subject hollow stainless steel balls are classified under heading 7326, HTSUS, as other articles of steel, or under heading 8481, HTSUS, as parts of valves, or under heading 8482, HTSUS, as parts of ball or roller bearings.
LAW AND ANALYSIS:
The matter is protestable under 19 U.S.C. §1514(a)(2) as a decision on classification and the rate and amount of duties chargeable. The protest was timely filed on November 1, 2007, within 180 days of liquidation of entry pursuant to 19 U.S.C. §1514(c)(3). Further review of Protest 3901-2007-101454 was properly accorded to protestant pursuant to 19 C.F.R. §174.24. Specifically, Protestant contends that the matter involves questions of fact or law which have not been ruled upon by the Commissioner of Customs or his designee or by the Customs courts.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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 2 through 6 may then be applied in order.
The 2007 HTSUS provisions under consideration are as follows:
7326 Other articles of iron or steel:
7326.90 Other:
Other:
7326.90.85 Other….
8481 Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof:
8481.90 Parts:
8482 Ball or roller bearings, and parts thereof:
Parts:
8482.91.00 Balls, needles and rollers
Balls:
Note 6 to Chapter 84, HTSUS, provides that:
Heading 8482 applies, inter alia, to polished steel balls, the maximum and minimum diameters of which do not differ from the nominal diameter by more than 1 percent or by more than 0.05 mm, whichever is less. Other steel balls are to be classified under heading 7326.
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 ENs to heading 7326, HTSUS, provide in pertinent part, that :
This heading covers all iron or steel articles obtained by forging or punching, by cutting or stamping or by other processes such as folding, assembling, welding, turning, milling or perforating other than articles included in the preceding headings of this Chapter or covered by Note 1 to Section XV or included in Chapter 82 or 83 or more specifically covered elsewhere in the Nomenclature.
* * *
The heading includes:
(1) Horseshoes; boot or shoe protectors whether or not incorporating affixing points;……suspension or connecting devices for insulator chains (suspension rods, shackles, extensions, eyes or rings with stud connections, ball sockets, suspension clamps, dead end clamps, etc.); non calibrated steel balls (see Note 6 to Chapter 84);
The ENs to heading 8481, HTSUS, provide in pertinent part, that :
This heading covers taps, cocks, valves and similar appliances, used on or in pipes, tanks, vats or the like to regulate the flow (for supply, discharge, etc.), of fluids (liquid, viscous or gaseous), or, in certain cases, of solids (e.g., sand). The heading includes such devices designed to regulate the pressure or the flow velocity of a liquid or a gas.
The appliances regulate the flow by opening or closing an aperture (e.g., gate, disc, ball, plug, needle or diaphragm). They may be operated by hand (by means of a key, wheel, press button, etc.), or by a motor, solenoid, clock movement, etc., or by an automatic device such as a spring, counterweight, float lever, thermostatic element or pressure capsule.
* * *
PARTS
Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the appliances of this heading are also classified here.
The ENs to heading 8482, HTSUS, provide in pertinent part, that :
This heading covers all ball, roller or needle roller type bearings. They are used in place of smooth metal bearings and enable friction to be considerably reduced. They are generally fitted between the bearing housing and the shaft or axle, and may be designed to give radial support (radial bearings) or to resist thrust (thrust bearings). Certain bearings may be designed for both radial and thrust support.
Normally, bearings consist of two concentric rings (races) enclosing the balls or rollers, and a cage which keeps them in place and ensures that their spacing remains constant.
* * *
PARTS
The heading also covers parts of ball, roller or needle roller bearings, e.g. :
(1) Polished steel balls (whether for bearings of this heading or not), the maximum and minimum diameters of which do not differ from the nominal diameter by more than 1 % or by more than 0.05 mm whichever is less; balls not conforming to this definition are classified in heading 73.26 (see Chapter Note 6).
Protestant argues that the subject hollow stainless steel balls do not meet the specifications set forth in Note 6 to Chapter 84 and are therefore precluded from classification in heading 8482, HTSUS. Specifically, Protestant contends that the subject merchandise is designed solely or principally for use inside a directional control valve of a dishwashing appliance and that, therefore, the subject hollow steel balls are classified under heading 8481, HTSUS, as parts of valves.
Heading 8482, HTSUS, provides for: “[b]all or roller bearings and parts thereof.” Accordingly, polished steel balls which are classifiable under heading 8482, HTSUS, and thereby subject to Note 6, must be parts of ball or roller bearings. See also, the ENs to heading 8482, which explicitly repeat Note 6. The term “part” was defined by the Court of Appeals for the Federal Circuit in Bauerhin Techs. Ltd. Pshp. v. United States, 110 F.3d 774, 779 (Fed. Cir. 1997), as “an imported item dedicated solely for use with another article.”
Ball or roller bearings are designed to reduce rotational friction by providing smooth balls or rollers and a smooth inner and outer surface for the balls to roll against. As the ENs to heading 8482, HTSUS, explain, “Normally bearings consist of two concentric rings (races) enclosing the balls or rollers, and a cage which keeps them in place and ensures that their spacing remains constant.” The subject merchandise does not conform to this definition and is not designed to be used as parts of ball bearings or roller bearings. As such, we find that the subject hollow steel balls are not described by heading 8482, HTSUS. Thus, Note 6 is not applicable in the instant case.
Heading 8481, HTSUS, provides, in pertinent part, for “[t]aps, cocks, valves and similar appliances…and parts thereof.” Valves of heading 8481, HTSUS, may in some instances incorporate a valve ball. For example, in NY C82375 dated January 21, 1998, CBP classified a valve ball made of steel under subheading 8481.90, HTSUS, as a part of a valve. The valve ball of C82375 was mounted to an actuator by a stem and featured a bore hole through its center (giving it the appearance of a doughnut). The flow of fluid was either blocked or allowed based on the positioning of the bore hole of the valve ball. In HQ 089939, dated November 14, 1991, CBP classified ball valve subassemblies used to control the flow of material in a pipeline under heading 8481, HTSUS. The subject hollow S.S. balls do not have a hole in their center which impacts the flow rate, but instead consist of a hollowed out interior (much like a ping-pong ball) and are therefore dissimilar to the ball valves of NY C82375 and HQ 089939. As such, these rulings are not helpful in determining classification of the instant merchandise.
The subject hollow S.S. balls can be used in several other applications in addition to the directional water flow control valve and they lack identifiable features or functions which would dedicate their use solely to a directional water flow control valve. For example, hollow stainless steel balls can be used in aircraft ball transfer units, ball tables, conveyor systems, liquid float systems. Accordingly, the subject merchandise does not meet the judicial definition of a part because it is not “dedicated solely for use” with another article, in this case the directional water flow control valve of heading 8481, HTSUS.
Based on the foregoing, we find that the subject hollow S.S. balls are classified under heading 7326, HTSUS, as other articles of steel. Moreover, the they are not precluded from classification in this heading because the subject articles are not more specifically provided for elsewhere.
HOLDING:
By application of GRI 1, the subject one inch hollow S.S. balls are classified under heading 7326, HTSUS. These articles are specifically classified in subheading 7326.90.85, HTSUS, which provides for: “Other articles of steel: Other: Other: Other.” The 2007 column one, general rate of duty at the time of entry was 2.9% ad valorem.
Since reclassification of the merchandise will result in a lower rate of duty than the liquidated rate, you are instructed to allow the Protest in full. In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the protestant no later than 60 days from the date of this letter.
Sixty days from the date of the decision the Office of International Trade, Regulations and Rulings will make the decision available to CBP personnel,
and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division