CLA-2:CO:R:C:G 082257 JAS
Richard E. Toth
Taurus International Corporation
P.O. Box 699
Ramsey, New Jersey 07446
RE: Tariff Classification of Cold Formed Anvil Blanks
Dear Mr. Toth:
In your letter of May 3, 1988, you inquire as to the
tariff classification of a cold headed or cold formed part of
a power impact wrench called an anvil blank. Our ruling
follows.
FACTS:
A submitted sample is of an article approximately 2-9/16
inches long, press forged in the general shape of a T-bolt,
but with a round upper shaft tapering to a square end. It
appears to have first been surface cleaned and then norma-
lized, which is a heat treatment followed by air cooling
designed to impart a uniform, relatively fine-grained
microstructure. This is the condition of the article as
imported. After importation, the shaft is ground to remove
rust and scale and the wings or ears machined to round the
edges. The surface of the blank is then hardened by heating
it in contact with a high-carbon material in a process called
carburizing. The blank is then final cleaned by shot preening
and pilot holes drilled in each wing.
You state that previous entries of this merchandise have
been classified under the provision for forgings of iron or
steel, other than alloy iron or steel, not machined, not
tooled, and not otherwise processed after forging, in item
606.71, Tariff Schedules of the United States (TSUS). How-
ever, Customs now proposes to classify the anvil blanks as
parts of hand-directed or hand-controlled tools with pneumatic
or self-contained non-electric motor, in item 674.70, TSUS,
dutiable at the rate of 2.5 percent ad valorem.
- 2 -
ISSUE:
Is the anvil blank advanced beyond the forging stage? If
so, is it sufficiently identifiable as an unfinished part?
LAW AND ANALYSIS:
Schedule 6, Part 2, Headnote 1, TSUS, which governs
entries under item 606.71, permits forged articles to be
further advanced by annealing, tempering, case-hardening, and
similar heat-treatments, unless the context of the involved
provision requires otherwise. The language of item 606.71
covers only articles which have not been processed after
forging. Our courts have held that normalizing is not a
process incidental to the creation of a forging, but is a heat
treatment to which forgings are subjected to improve the
properties of the metal. Consequently, forgings of iron or
steel which have been normalized are not classifiable in item
606.71.
There appears to be agreement that after final processing
in the United States the anvil blanks belong to a class or
kind of merchandise chiefly used with those hand-directed
tools classifiable in item 674.70, TSUS. For Customs pur-
poses, unless the context requires otherwise, a tariff
description covers an article whether assembled or not
assembled, and whether finished or not finished. Articles
such as anvil blanks which have been advanced beyond the stage
of a basic shape or form of iron or steel will be regarded for
Customs purposes as unfinished articles or as unfinished parts
of articles, if they have been so far advanced at the time of
importation as to be clearly dedicated to and commercially fit
for use only as the article or part intended. Each case, of
course, depends on the particular facts involved. The
articles here have a uniquely-shaped shank which is circular
at the top but which tapers to a square bottom. This design,
in our opinion, makes the articles commercially unsuitable for
use as anything else or for being made into anything else. We
consider the grinding, machining, carburizing, shot preening
and drilling to be relatively insubstantial post-importation
processing operations.
HOLDING:
The anvil blanks in question are unfinished articles for
tariff purposes, and are classifiable as parts of hand-
directed or hand-controlled tools with pneumatic or self-
contained non-electric motor, in item 674.70, TSUS.
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The Harmonized Tariff Schedule of the United States
Annotated (HTSUSA), is scheduled to replace the TSUS as the
tariff code of the United States on January 1, 1989. The
HTSUSA provision applicable to the anvil blank is subheading
8467.92.0090, Parts of pneumatic tools for working in the
hand, dutiable at the rate of 2.5 percent ad valorem.
This is Customs current position on the classification of
the anvil blank. However, if this provision changes before
January 1, 1989, this advice may not continue to apply.
Sincerely,
John Durant, Director,
Commercial Rulings Division