CLA-2 CO:R:C:M 956743 DWS

Ms. Maureen D. Pearson
Katten Muchin & Zavis
525 West Monroe Street, Suite 1600
Chicago, IL 60661-3693

RE: Hose Fittings, Plugs, and Adaptors of Iron or Steel; HQ 088393; Hose Fittings vs. Pipe and Tube Fittings; Parts; Kores Manufacturing Inc. v. U.S.; Section XVI, Note 2; Explanatory Note (III) to Section XVII; 7307.92.90; 7303.99.50

Dear Ms. Pearson:

This is in response to your letters of March 18 and July 29, 1994, to the District Director of Customs, Chicago, Illinois, and November 15, 1994, and January 9, 1995, to this office, on behalf of Komatsu Dresser Company, concerning the classification of hose fittings, plugs, and adaptors of iron or steel under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise consists of various hose fittings, plugs, and adaptors of iron or steel. These articles are used in the manufacture of trucks and excavators. Each piece is specially designed and made for use in a specific application. They are not interchangeable from one application to another.

The first group of articles serve as parts designed specifically for the manufacture of certain hydraulic systems for use in excavators. These parts consist of tee fittings (part no. 209-62-57730), nipple fittings (part no. 21T-62-29960), and elbow fittings (part nos. 567-35-12160 and 20Y-62-11780). These fittings are used to connect hoses to various subassemblies within each hydraulic system.

The second group of articles serve as parts designed specifically for the manufacture and repair of brake systems, steering systems, and other components of dump trucks. The articles dedicated for use with the brake systems consist of elbow fittings (part nos. 195-33-15180, 20D-26-12180, 581-35-14421, 581-35-14430, and 566-35-14350), which are used to connect hoses to various subassemblies within each brake system. The articles dedicated for use with the steering systems consist of elbow fittings (part nos. 205-62-67270, 561-61-64280, 561-61-64310, and 561-61-64290), which are used to connect hoses to various subassemblies within each steering system. The articles which are dedicated for use with other components within each dump truck consist of elbow fittings (part nos. 575-41-17110, 209-43-62180, 6691-51-9942, and 209-62-54332), which are used to connect hoses to various subassemblies within the each dump truck; nipple fittings (part no. 562-04-12120), which are used to connect a hose to each vehicle fuel tank; plugs (part no. 566-98-15120), which are used to seal each vehicle fuel tank; and adaptors (part no. 418-87-81250), which are attached to a hose used to drain the contents of a vehicle fuel tank.

The subheadings under consideration are as follows:

7307.92.90: [t]ube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: [o]ther: [t]hreaded elbows, bends and sleeves: [o]ther.

The general column one rate of duty for goods classifiable under this provision is 6.2 percent ad valorem.

7307.99.50: [t]ube or pipe fittings . . ., of iron or steel: [o]ther: [o]ther: [o]ther.

The general column one rate of duty for goods classifiable under this provision is 5.8 percent ad valorem.

8412.90.90: [o]ther engines and motors, and parts thereof: [p]arts: [o]ther.

The general column one rate of duty for goods classifiable under this provision is 2.7 percent ad valorem.

8708.39.50: [p]arts and accessories of the motor vehicles of headings 8701 to 8705: [b]rakes and servo- brakes and parts thereof: [o]ther: [f]or other vehicles.

The general column one rate of duty for goods classifiable under this provision is 3 percent ad valorem.

8708.99.73: . . . : [o]ther parts and accessories: [o]ther: [o]ther: [o]ther: [p]arts for steering systems.

The general column one rate of duty for goods classifiable under this provision is 3 percent ad valorem.

8708.99.80: . . . : [o]ther parts and accessories: [o]ther: [o]ther: [o]ther: [o]ther.

The general column one rate of duty for goods classifiable under this provision is 3 percent ad valorem.

ISSUE:

Whether the fittings of iron or steel for use in excavator hydraulic systems are classifiable under the various provisions of heading 7307, HTSUS, describing each of them as pipe fittings, or under subheading 8412.90.90, HTSUS, as parts of hydraulic systems.

Whether the elbow fittings for use in the dump truck brake systems are classifiable under subheading 7307.92.90, HTSUS, as threaded elbows of iron or steel, or under subheading 8708.39.50, HTSUS, as parts of vehicle brake systems.

Whether the elbow fittings for use in dump truck steering systems are classifiable under subheading 7307.92.90, HTSUS, as threaded elbows of iron or steel, or under subheading 8708.99.73, HTSUS, as parts of vehicle steering systems.

Whether the fittings of iron or steel for use with other components of the dump trucks are classifiable under the provisions of heading 7307, HTSUS, describing each of them as pipe fittings, or, with the plugs and adaptors, under subheading 8708.99.80, HTSUS, as other parts of motor vehicles.

LAW AND ANALYSIS:

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

We will first deal with the classification of all the fittings, regardless of use. In HQ 088393, dated March 26, 1991, we dealt with the difference between hose and pipe fittings. In that ruling, we stated that:

[t]he question has arisen whether "hose fittings" are properly classifiable under the provision for "tube or pipe fittings." The court in John V. Carr & Son, Inc. v. United States, 76 Cust.Ct. 162, C.D. 4652 (1976), stated : "It is to be noted that a 'tube' as it is known within the industry is made of a single extruded compound rather than many materials [which hoses are made of] and is never made on a flexible nylon mandrel [such as the hose in John V. Carr]." The court also stated that:

With respect to this report [House Ways and Means Committee report, H. Rep. No. 537, 89th Cong., 1st Sess (1965)], defendant argues that 'hose' is similar to 'pipes and tubes.' Therefore, according to defendant, the hose involved is covered by the words 'pipes and tubes' which the report states are materials and thus are not included within the purview of 'fabricated components.' In point of fact, contrary to defendant's conclusion, the subject merchandise is not 'tube' or 'pipe.' Id. at 178. . .

Thus, although a "hose" may be considered a "tube" in common meaning, they are not interchangeable terms for tariff purposes. . . Under the TSUS [Tariff Schedules of the United States], Customs has consistently held that hose fittings are not properly classifiable under the provision for pipe and tube fittings. . . Customs finds no reason to change the classification of hose fittings as previously addressed under the TSUS.

As with the hose fittings in HQ 088393, we do not consider the subject hose fittings as interchangeable with the tube or pipe fittings of heading 7307, HTSUS. The subject fittings connect with hose, which is made up of many materials and not of one extruded compound. Therefore, it is our position that all of the subject fittings are precluded from classification under the various provisions of heading 7307, HTSUS.

With regard to all of the subject articles, including the fittings, plugs, and adaptors, we must determine, for classification purposes, whether they are parts. Whether an article is a part of another article depends on the nature of the so-called "part" and its usefulness, function and purpose in relation to the article in which it is designed to serve. Kores Manufacturing Inc. v. U.S., 3 CIT 178, 179 (1982), aff'd appeal No. 82-83 (C.A.F.C. 1983).

It is our understanding that all of the subject articles, specially designed and made for use in a specific application, are essential to the effective and safe operation of the subassemblies and components to which they are parts.

Section XVI, note 2, HTSUS, states that:

[s]ubject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) 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 8485 and 8548) are in all cases to be classified in their respective headings;

(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. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517;

(c) All other parts are to be classified in heading 8485 or 8548. As the fittings, which are parts of the hydraulic systems of heading 8412, HTSUS, are not named articles classifiable under the headings of chapters 84 or 85, HTSUS, section XVI, note 2(a), HTSUS, is inapplicable. However, under section XVI note 2(b), HTSUS, because the fittings are suitable for use solely with the hydraulic systems of heading 8412, HTSUS, they are classifiable under subheading 8412.90.90, HTSUS, as parts of hydraulic systems.

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 (III) to section XVII, HTSUS (p. 1410), states that:

(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 the following conditions:

(a) They must not be excluded by the terms of Note 2 to this Section . . .

and (b) They must be suitable for use solely or principally with the articles of Chapters 86 to 88 . . .

and (c) They must not be more specifically included elsewhere in the Nomenclature . . .

It is our position that all of the subject parts of the various dump truck subassemblies and components are classifiable under the various heading 8708, HTSUS, parts provisions which specifically describe them. None of the articles are excluded by the terms of section XVII, note 2; they are for use solely with dump truck subassemblies and components; and they are not more specifically classifiable under the HTSUS.

Therefore, the elbow fittings for use in the dump truck brake systems are classifiable under subheading 8708.39.50, HTSUS, as parts of vehicle brake systems. The elbow fittings for use in dump truck steering systems are classifiable under subheading 8708.99.73, HTSUS, as parts of vehicle steering systems. The fittings of iron or steel for use with other components of the dump trucks are classifiable with the plugs and adaptors under subheading 8708.99.80, HTSUS, as other parts of motor vehicles.

HOLDING:

The fittings of iron or steel for use in excavator hydraulic systems are classifiable under subheading 8412.90.90, HTSUS, as parts of hydraulic systems.

The elbow fittings for use in the dump truck brake systems are classifiable under subheading 8708.39.50, HTSUS, as parts of vehicle brake systems.

The elbow fittings for use in dump truck steering systems are classifiable under subheading 8708.99.73, HTSUS, as parts of vehicle steering systems.

The fittings of iron or steel for use with other components of the dump trucks are classifiable with the plugs and adaptors under subheading 8708.99.80, HTSUS, as other parts of motor vehicles.

Sincerely,

John Durant, Director
Commercial Rulings Division