CLA-2 CO:R:C:M 956285 DWS

District Director
U.S. Customs Service
605 W. Fourth Avenue, Room 205
Anchorage, AK 99501

RE: Protest 3126-92-100019; Spare Parts of Toothed Shaft Coupling; Nuts and Bolts; O-Rings; Complete and Unassembled; GRI 2(a); Explanatory Notes 2(a)(V) and (VII); HQs 088891, 951713, 953860, and 950886; Section XVI, Note 1(g); Section XV, Note 2(a); 8483.90.50; 8483.60.80

Dear District Director:

The following is our decision regarding Protest 3126-92- 100019 concerning your action in classifying and assessing duty on spare parts for a MAAG toothed shaft coupling under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise consists of spare parts for a MAAG toothed shaft coupling (model type ZUD-7). The parts are comprised of a coupling, fasteners (nuts and bolts), and plastic O-ring gaskets.

A MAAG toothed shaft coupling is a mechanical assembly which allows a drive shaft and a driven shaft to be joined together in such a way as to provide for the direct transfer of rotational torque, while allowing for a certain amount of flexibility of the two shafts. Each coupling consists of an inner cup, into which a drive shaft is pressed. This cup, which has a gear-toothed outer ring on one end, is inserted into an outer sleeve which also has matching gear teeth on its inner surface. The gears mesh with one another, allowing for the direct transfer of rotational force. The gears also allow for a limited amount of slippage between them, thereby providing the required flexibility. The coupling uses the O-rings as a "cushion" between the parts. In a full assembly, two couplings are used, one on either end of a connecting metal spacer. The couplings are bolted to the spacer with the specially balanced fasteners.

The merchandise was entered under subheading 8483.90.50, HTSUS, as parts of gearing. The entry was liquidated on September 11, 1992, under subheading 8483.60.80, HTSUS, as other shaft couplings. The protest was timely filed on December 10, 1992.

The subheadings under consideration are as follows:

8483.90.50: [p]arts of gearing, gear boxes and other speed changers.

The general, column one rate of duty for goods classifiable under this provision is 2.5 percent ad valorem.

8483.60.80: [c]lutches and shaft couplings (including universal joints): [o]ther.

The general, column one rate of duty for goods classifiable under this provision is 5.7 percent ad valorem.

8483.90.80: . . . clutches and shaft couplings (including universal joints); parts thereof: [p]arts: [o]ther: [o]ther.

The general, column one rate of duty for goods classifiable under this provision is 5.7 percent ad valorem.

7318.15.20: [o]ther screws and bolts, whether or not with their nuts or washers: [b]olts and bolts and their nuts or washers entered or exported in the same shipment.

The general, column one rate of duty for goods classifiable under this provision is 0.7 percent ad valorem.

3926.90.45: [o]ther articles of plastics and articles of other materials of headings 3901 to 3914: [o]ther: [g]askets, washers and other seals.

The general, column one rate of duty for goods classifiable under this provision is 3.5 percent ad valorem.

ISSUES:

Whether, for classification purposes, the subject spare parts are to be considered complete and unassembled shaft couplings, classifiable under subheading 8483.60.80, HTSUS.

If not, whether the spare parts are classifiable under subheading 8483.90.50, HTSUS, as parts of gearing.

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

GRI 2(a) states that:

[a]ny reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.

In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes, although not dispositive or legally binding, 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, 35128 (August 23, 1989).

Explanatory Note 2(a)(V) (p. 2) states that:

[t]he second part of Rule 2(a) provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport.

In part, Explanatory Note 2(a)(VII) (p. 2) states that:

[f]or the purposes of this Rule, "articles presented unassembled or disassembled" means articles the components of which are to be assembled either by means of simple fixing devices (screws, nuts, bolts, etc.) or by riveting or welding, for example, provided only simple assembly operations are involved.

Although the subject components, when assembled together, may form a complete MAAG toothed shaft coupling, it is our position that they were not shipped unassembled for convenience of packing, handling, or transport, but as spare parts for inventory purposes. In such instances, the components cannot be classifiable as a complete and unassembled toothed shaft coupling, but are to be classifiable under the HTSUS provisions which describe the individual components. See HQ 088891, dated June 21, 1991; HQ 953860, dated June 23, 1993; and HQ 951713, dated August 4, 1992.

The subject components are not classifiable under subheading 8483.90.50, HTSUS, as parts of gearing. The gear teeth on the coupling are present to provide the coupling with needed flexibility, not to change direction or ratio of force. Because the purpose of the coupling is as a part of a shaft coupling, it is our position that it is classifiable specifically under subheading 8483.90.80, HTSUS.

Section XVI, note 1(g), HTSUS, states that:

[t]his section does not cover:

(a) - (f) xxx

(g) Parts of general use, as defined in note 2 to section XV, of base metal (section XV), or similar goods of plastics (chapter 39).

Section XV, note 2(a), HTSUS, states that:

[t]hroughout the tariff schedule, the expression "parts of general use" means:

(a) Articles of heading 7307, 7312, 7315, 7317 or 7318 and similar articles of other base metals.

The subject fasteners are specifically classifiable under subheading 7318.15.20, HTSUS, as other bolts with their nuts. Because they are parts of general use under section XV, note 2(a), HTSUS, under section XVI, note 1(g), HTSUS, they are precluded from classification under heading 8483, HTSUS.

With regard to the plastic O-rings, in HQ 950886, dated April 3, 1992, we held that plastic O-rings were similar to the washers of heading 7318, HTSUS, and were parts of general use classifiable under subheading 3926.90.45, HTSUS. Therefore, it is our position that the O-rings are classifiable under subheading 3926.90.45, HTSUS, as other plastic seals, and under section XVI, note 1(g), HTSUS, are precluded from classification under heading 8483, HTSUS.

HOLDING:

By authority of GRI 2(a), the subject components do not constitute a complete and unassembled toothed shaft coupling, and they must be classifiable under the specific HTSUS provisions which individually describe the components.

The coupling is classifiable under subheading 8483.90.80, HTSUS, as a part of a shaft coupling.

The fasteners are classifiable under subheading 7318.15.20, HTSUS, as other bolts with their nuts.

The plastic O-rings are classifiable under subheading 3926.90.45, HTSUS, as other plastic seals.

With regard to the coupling, because the rate of duty under the classification indicated above is the same as the liquidated rate, you are instructed to DENY the protest.

With regard to the fasteners, because reclassification of the merchandise as indicated above will result in a lower rate of duty than claimed, you are instructed to GRANT the protest.

With regard to the plastic O-rings, you are instructed to DENY the protest, except to the extent reclassification of the merchandise as indicated above results in partial allowance.

In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision, together with the Customs Form 19, should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Lexis, Freedom of Information Act, and other public access channels.

Sincerely,

John Durant, Director
Commercial Rulings Division