CLA-2 CO:R:C:M 957094 DWS
District Director
U.S. Customs Service
200 East Bay Street, Rm. 121
Charleston, SC 29401
RE: Protest 1603-94-100002; Close-Die Forgings; Steel Rings;
Inner or Outer Rings for Ball Bearings; Chapter 72,
Note 1(n); GRI 2(a); Blanks; Explanatory Note 2(a)(II);
7228.70.60
Dear District Director:
The following is our decision regarding Protest 1603-94-100002 concerning your action in
classifying and assessing duty on close-die forgings under the Harmonized Tariff Schedule of the
United States (HTSUS).
FACTS:
The merchandise consists of close-die forgings, which are comprised of alloy steel rings which
have been forged, shot blasted, and annealed. It is our understanding from the information
submitted that, once imported into the U.S., these forgings will be sold to a bearing company
where they will be processed into inner and outer rings for thrust ball bearings.
The forgings were entered on August 2, 1993, under subheading 7228.70.60, HTSUS, as
other shapes of alloy steel. The entry was liquidated on April 1, 1994, under subheading
8482.99.10, HTSUS, as parts of ball bearings. The protest was timely filed on June 15, 1994.
The subheadings under consideration are as follows:
7228.70.60: . . . angles, shapes and sections, of other
alloy steel; . . . : [a]ngles, shapes and
sections: [o]ther.
The 1993 general, column one rate of duty for goods classifiable under this provision
is 5.3 percent ad valorem.
8482.99.10: [b]all or roller bearings, and parts thereof:
[p]arts: [o]ther: [p]arts of ball bearings
including parts of ball bearings with integral
shafts).
The 1993 general, column one rate of duty for goods classifiable under this provision
is 11 percent ad valorem.
ISSUE:
Whether the close-die forgings are classifiable under subheading 7228.70.60, HTSUS, as other
shapes of alloy steel, or under subheading 8482.99.10, HTSUS, as parts of ball bearings.
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.
Chapter 72, note 1(n), HTSUS, states, in relevant part:
1. In this chapter . . ., the following expressions have the
meanings hereby assigned to them:
(a) - (m) xxx
(n) Angles, shapes and sections
Products having a uniform solid cross section along
their whole length which do not conform to any of the
definitions at (ij), (k), (l) or (m) above or to the
definition of wire. . .
Because the forgings are in the shape of rings, they do not possess a uniform solid cross
section, and cannot, for classification purposes, be "angles, shapes and sections". Therefore, the
forgings are precluded from classification under subheading 7228.70.60, HTSUS.
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)(II) (p. 2) states that:
[t]he provisions of this Rule also apply to blanks unless
these are specified in a particular heading. The term
"blank" means an article, not ready for direct use, having
the approximate shape or outline of the finished article or
part, and which can only be used, other than in exceptional
cases, for completion into the finished article or part.
Semi-manufactures not yet having the essential shape of the
finished articles (such as is generally the case with bars,
discs, tubes, etc.) are not regarded as "blanks".
It is our position that the subject forgings, in the shape of rings, are blanks. Although they are
not finished inner or outer rings, they possess their approximate shape. Also, it is our
understanding that these rings are only used in the manufacture of inner or outer rings for thrust
ball bearings. The fact that the forgings are sold to a bearing company is evidence of their use.
The protestant claims that the forgings are not principally used to form inner or outer rings,
and can be used in several other applications. However, the protestant has not provided any
evidence to support this claim, nor were any of these other applications specifically mentioned.
Based upon the shape and composition of the forgings, it is our position that they are blanks
which will be used to form inner or outer rings for thrust ball bearings. Therefore, based upon
GRI 2(a), the forgings are unfinished parts of ball bearings classifiable under subheading
8482.99.05, HTSUS.
HOLDING:
The close-die forgings are classifiable under subheading 8482.99.10, HTSUS, as parts of ball
bearings.
The protest should be DENIED. 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, Freedom of Information Act,
and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division