CLA-2 OT:RR:CTF:TCM H209835 ALS
Port Director
U.S. Customs and Border Protection
5600 Pearl Street
Rosemont, Illinois 60018
ATTN.: Mr. Ken Milner
RE: Application for Further Review Protest No. 3901-10-100916; Tariff classification of Semi-Machined or Machined Sleeve Cylinder Liners for Internal-Combustion Engines
Dear Port Director:
This letter is in reply to the Application for Further Review (“AFR”) of Protest number 3901-10-100916, filed October 19, 2010, on behalf of KJM Customs Components, LLC (“KJM” or “Protestant”). The Protest is against U.S. Customs and Border Protection’s (“CBP”) tariff classification of the semi-machined or machined sleeve cylinder liner for internal combustion engines under subheading 8409.91.9990 of the Harmonized Tariff Schedule of the United States (“HTSUS”).
FACTS:
The article at issue is a sleeve cylinder liner for machines. The protestant describes it as a “semi-machined (or machined) iron casting sleeve cylinder for internal combustion engines.” The invoices describe the article as “parts suitable for use solely or principally with the engines of heading 8407 or 8408,” which is a verbatim quote from HTSUS heading 8409. The article is a cylinder of iron casting that is either machined or semi-machined. The following is a photocopy of the cylinder:
The picture, which was provided by the protestant, shows that the subject sleeve cylinder liner is machined with several concentric indentations near each opening. One of the openings also has a lip around the circumference of the face of the opening.
A number of these articles were entered on June 4, 2010 under the HTSUS subheading 7303.00.0090. Your office issued a Notice of Action to KJM, dated July 21, 2010, in which you notified KJM that the proper tariff classification of the entered articles is HTSUS subheading 8409.91.9990.
ISSUE:
What is the proper tariff classification of the semi-machined or machined sleeve cylinder liner?
LAW AND ANALYSIS:
Initially, CBP notes that the Protest was timely filed on October 6, 2010, which is within 180 days after the liquidation date of August 6, 2010. See 19 U.S.C. §1514(c)(3). Additionally, CBP’s classification of the merchandise is a protestable matter under 19 U.S.C. §1514(a)(2).
Further Review of Protest No. 3901-10-100916 is properly accorded to the Protestant pursuant to 19 CFR 174.24(a). The Protestant asserts that CBP’s classification of the articles is inconsistent with CBP rulings, which concern the same or substantively similar merchandise, specifically CBP Ruling Letter NY K80014 (November 20, 2003). We note that NY K80014 has been replaced by CBP Ruling NY K81593 (December 5, 2003) with the publication of the latter to correct an error with regard to the country of origin. Since NY K81593 does not amend any of the substantive tariff classification discussion of the article at issue in NY K80014, we will discuss NY K81593 with the same consideration we would have given NY K80014.
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRI”) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (“ARI”). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings 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, GRIs 2 through 6 may be applied in order.
The 2010 HTSUS, Revision 2, headings under consideration in this case are as follows:
7303 Tubes, pipes and hollow profiles, of cast iron……………
8409 Parts suitable for use solely or principally with the engines of heading 8407 or 8408:
The protestant asserts that the article at issue is classifiable under HTSUS subheading 7303.00.0090 as another tube or pipe of cast iron. The protestant cites the aforementioned NY K80014, which classified “cast iron cylinder sleeves (or cylinder liners)” under 7303.00.0090, to support its assertion. The protestant claims that the sleeve cylinder liner requires further machining before being used in an engine. The protestant also notes that a CBP-issued Informed Compliance Notice, dated September 13, 2004, cites NY K80014 in noting that “semi-machined iron casting sleeve cylinder for an internal combustion engine” is classified under 7303.00.0090. We must note here that an Informed Compliance Notice does not supersede the authority of a published ruling.
Section XV, Note 1(f) of the HTSUS states that the section does not cover articles of Section XVI, which includes machinery. Heading 8409 is under Section XVI. The subject article is described on the submitted invoices as “parts suitable for use solely or principally with the engines of heading 8407 or 8408,” which is, as noted above, verbatim text from heading 8409. Heading 8407 covers “spark-ignition reciprocating or rotary internal combustion piston engines.” Heading 8408 covers “compression-ignition internal combustion piston engines (diesel or semi-diesel engines).” As noted above, the cylinder is either machined or semi-machined upon importation, in stark contrast to the cast iron cylinder sleeve in NY K81593/NY K80014, which is unfinished upon importation and will be further manufactured after importation.
As noted above, the picture provided by the protestant clearly shows that the subject sleeve cylinder liner is machined with several concentric indentations near each opening, as well as a lip around the circumference of the face of the opening. These are clearly unique characteristics that are indicative that the cylinder has been manufactured for a particular use, and as such is a specific identifiable article in contrast to the cylinder at issue in NY K81593/NY K80014. Thus, the subject cylinder does not meet the definition of a tube or pipe under chapter 73.
While the article in NY K81593/NY K80014 is to be eventually manufactured into cylinder liner for an internal combustion engine after importation, the subject cylinder liner is manufactured as such upon importation. The subject sleeve cylinder liner does not meet the definition of a tube or pipe under chapter 73. Therefore, we find that the subject semi-machined or machined sleeve cylinder liner is properly classified under HTSUS subheading 8409.91.9990 as another part suitable for use principally with either spark-ignition reciprocating or rotary internal combustion piston engines of heading 8407 or compression-ignition internal combustion piston engines (diesel or semi-diesel engines) of heading 8408.
HOLDING:
The semi-machined or machined cast iron sleeve cylinder liner is properly classified under subheading 8409.91.9990, which provides for “Parts suitable for use solely or principally with the engines of heading 8407 or 8408: Other: Other: Other: Other.” The general column one rate of duty, for merchandise classified in this subheading under the 2010 HTSUS, Revision 2, is 2.5 percent ad valorem.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
The Protest should be DENIED. A copy of this ruling should be attached to the CBP Form 19 and provided to the protestant as part of the notice of action on the protest.
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 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