CLA-2 OT:RR:CTF:TCM H263912 ALS
Port Director
U.S. Customs and Border Protection
5600 Pearl Street
Rosemont, Illinois 60018
RE: Application for Further Review Protest No. 3901-14-100880; Tariff classification of a Cast Iron Hub
Dear Port Director:
This letter is in response to the above-referenced protest and application for further review (“AFR”) filed on behalf of Thombert Inc. The protest concerns the tariff classification of a Cast Iron Hub under the Harmonized Tariff Schedule of the United States (“HTSUS”). Our response is set forth below, which takes into consideration the substance of our discussion during the in-person meeting on April 19, 2018.
FACTS:
The Cast Iron Hub* consists of a ring of iron that is described as a “bearing bore.” The CIH is shaped like a round disc with a hole in the center, somewhat resembling a donut. A groove is cut into each opening that suggests that either the CIH is to be fitted onto something else, or something else is to be fitted onto it. There are no markings or design features around the outside of the ring to suggest the connection of other items or components, i.e. viewed from the outside, the product is a cast iron cylinder.
The Protestant states that after importation, the CIH is combined with other parts to eventually constitute a complete forklift wheel hub assembly. After importation, a polyurethane “tread” is added to its outer circumference and then bearings are pressed into the aforementioned grooves on the interior the CIH, either by Thombert or a customer. The Protestant states that the completed wheel hub assembly will be a forklift load wheel that does not provide any driving force. Upon being fitted with the polyurethane tread and bearings, it is fitted to the out riggers of a forklift and functions much like more conventional vehicle wheels, rolling in direct contact with the ground upon which the forklift is traveling. The Protestant further states that the CIH is designed to meet specific dimensions and tolerances for use on specific forklifts.
The Protestant had entered a number of CIHs under subheading 7325.99.10, HTSUS, as other cast articles of iron or steel, which the Protestant now acknowledges is incorrect. The Protestant now contends that the CIHs should be classified under subheading 8431.20.00, HTSUS. Your office liquidated the subject entries under subheading 8483.30.80, HTSUS, as other bearing housings.
ISSUE:
Is the “Cast Iron Hub”, as described above, properly classified under heading 8431, HTSUS, as a part of a forklift, or heading 8483, HTSUS, as a bearing housing?
LAW AND ANALYSIS:
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 following headings and subheadings of the HTSUS are under consideration in this case:
8431 Parts suitable for use solely or principally with the machinery of headings 8425 to 8430:
* * *
8483 Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof:
Note 2(a) and (b) to Section XVI, HTSUS, under which headings 8431 and 8483 fall, provides the following:
2. Subject 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:
Parts which are goods included in any of the headings of chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;
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 or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. 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….
Thus, in accordance with Note 2(a), if the subject merchandise is a part included in heading 8483, then it is excluded from being classified under heading 8431 as a part of the forklift per Note 2(b).
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the System. Customs and Border Protection believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). The EN for heading 8483 states the following about bearing housings:
Bearing housings consist of a frame or block designed to house the plain, ball, roller, etc., bearing in which (or, in the case of a thrust bearing, against which) the ends of a shaft or axle turn. They usually consist of two parts which, when fitted together, form a ring to hold the bearing. They may incorporate means of lubricating the bearing.
It is a well-established principle that goods must be classified in their condition as imported. See Mita Copystar Am. v. United States, 21 F.3d 1079, 1082 (Fed. Cir. 1994); see also HQ 292799 (September 16, 2019). As noted above, the CIH is imported without the aforementioned bearings and polyurethane thread having been fitted. Thus, the cast iron wheel hub assembly to which the Protestant refers, completed with the bearings and the polyurethane thread only after importation, is not at issue here.
In its condition as imported, the Cast Iron Hub is not identifiable as a part of any particular machine or apparatus. It is also not identifiable as a wheel hub assembly, incomplete or not. We note, however, that visual inspection of the photographs of the CIH that the Protestant submitted plainly indicates that the grooves machined into a CIH allow for bearings to be fitted into the openings of the CIH. This is consistent with the Protestant’s statement that the CIH is machined prior to importation to allow bearings to be fitted into the CIH. In other words, as condition as imported, the instant merchandise is designed to house bearings. Thus, we find that the CIH, in its condition as imported, is a bearing housing. As such, it is properly classified under heading 8483, HTSUS, in accordance with Note 2(a) to Section XVI. Specifically, it is properly classified under subheading 8483.30.80, HTSUS, which provides for “Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof”.
That the instant bearing housing can be further advanced or outfitted with additional components (i.e. bearings inserted to form a hub, polyurethane “tread” added to serve as a “tire”, etc.) to function as a wheel for forklifts is not germane to our consideration here. In its condition as imported, the instant “bearing bore” constitutes a bearing housing of heading 8483, HTSUS.
HOLDING:
By application of GRI 1 (Note 2(a) to Section XVI), the Cast Iron Hub is properly classified under heading 8483, HTSUS. Specifically, it is properly classified under subheading 8483.30.80, HTSUS, which provides for “Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof”. The general column one rate of duty, for merchandise classified in this subheading is 4.5%.
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 in accordance with the LAW AND ANALYSIS section above. A copy of this ruling should be attached to the CBP Form 19 or equivalent document 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 Trade, Regulations and Rulings will make the decision available to CBP personnel, and to the public on the Customs Rulings Online Search System (CROSS) at https://rulings.cbp.gov which can be found on the U.S. Customs and Border Protection website at http://www.cbp.gov and other methods of public distribution.
Sincerely,
for Craig T. Clark, Director
Commercial and Trade Facilitation Division