CLA-2 CO:R:C:G 087910 JMH
District Director
U.S. Customs Service
Patrick V. McNamara Building, Suite 200
477 Michigan Ave.
Detroit, MI 48266
RE: Protest and Request for Further Review No. 3801-9-002050,
steel axle shaft forgings
Dear Sir:
The following is our decision regarding the Protest and
Request for Further Review No. 3801-9-002050, dated June 14,
1989, submitted by C.J. Tower, Inc. on behalf of Dana
Corporation. At issue is the classification under the Tariff
Schedules of the United States ("TSUS") of certain steel axle
shaft forgings.
FACTS:
The articles are steel axle shaft forgings. The
specification on the drawings submitted with the protest state
that the forgings must be free from scale. Descaling is
performed by sandblasting or shot blasting to remove the oxide
which leaves the forging with a clean surface.
Upon entry, the forgings were classified in item 606.71,
TSUS, as "Forgings of iron or steel, not machined, not tooled and
not otherwise processed after forging...Other than alloy iron or
steel..." The importer claims that the forgings should be
classified under item 692.32,TSUS, or item 692.33, TSUS, as
"Chassis, bodies...and parts of the foregoing motor vehicles...
Other..." Item 692.33 would apply if the parts are Canadian
articles and are original motor-vehicle equipment.
ISSUE:
Whether the steel axle shaft forgings are forgings of iron
or steel under item 606.71, or whether they are parts of
automobiles under items 692.32 and 692.33.
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LAW AND ANALYSIS:
Headquarters Ruling Letter 069532 ("HQ 069532"), dated
August 25, 1982, dealt with the issue of forgings compared with
unfinished articles. HQ 069532 states:
Products of a forging process which have not been
significantly advanced before importation will be
classified under item 606.71, or other applicable
forgings provision, even though the products also
represent, in their condition as imported unfinished
versions of articles, or parts of an article specially
provided for elsewhere in the TSUS.
Thus, it is Customs position that unless the forgings have
been significantly advanced prior to importation, they are
classified as forgings in item 606.71.
Headquarters Ruling Letter 070707 ("HQ 070707"), dated
February 14, 1983, states:
...there is sufficient administrative and judicial
precedent to support the proposition that descaling
either by shot blasting or sandblasting is not
incidental to the creation of a forging but a process
which occurs after forging.
The steel axle shaft forgings in question are descaled
according to the specifications on the drawings submitted with
the protest. Descaling has been determined to be a further
working of the surface of a forging that occurs after the forging
process. It is the opinion of this office that the descaling is
a significant advancement. Descaling not only improves the
appearance of the forging, but also further works the metal.
Since the forgings are "otherwise processed after forging" they
cannot be classified in item 606.71. The appropriate
classification for the forgings is in items 692.32 or 692.33 as
parts of motor vehicles.
HOLDING:
The steel axle shaft forgings imported by Dana Corporation
are descaled. This has been determined to be a further working
of the surface of a forging that occurs after the forging
process. Since the forgings are "otherwise processed after
forging" they cannot be classified in item 606.71. The
appropriate classification for the forgings is in items 692.32 or
692.33 as parts of motor vehicles.
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The protest should be granted in full. A copy of this
decision should be attached to the Form 19 Notice of Action for
the protest.
Sincerely,
John Durant, Director
Commercial Rulings Division