CLA-2-84:OT:RR:NC:N1:102
Mr. William R. Rucker
Drinker Biddle & Reath LLP
191 North Wacker drive, Suite 3700
Chicago, IL. 60606-1698
RE: The tariff classification of Tapered Roller Bearing Cups and Cone Assemblies from Russia.
Dear Mr. Rucker:
In your letter dated April 13, 2015, on behalf of your client, Amsted Rail Company Inc., you requested a tariff classification ruling. A representative sample of the Tapered Roller Bearing Cup and Cone Assemblies were submitted with your request and will be returned to you. It is noted that since Amsted Rail has not started production in Russia, the representative sample submitted is said to be produced by Amsted Rail in the U.S.
The items under consideration are described in your submission as “Class K” Tapered Roller Bearings consisting of a Cup and Cone Assembly containing a double row of tapered rollers as rolling elements. It is stated in your submission, Tapered Roller Bearings and cups will be entered together as sets and the outside diameter of the cup exceeds 102 mm. The information provided also states the Tapered Roller Bearings and Cups are designed to be used in Railroad cars, other than as wheel hub units.
Merchandise is classifiable under the HTSUS in accordance with the General Rules of Interpretation (GRIs). GRI 1 states that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes. Under the authority of GRI 1 and based on all of the information provided, we find the Tapered Roller Bearing Cup and Cone Assemblies are specifically provided for in heading 8482, HTSUS. As such, the applicable subheading for Tapered Roller Bearing Cup and Cone Assemblies will be 8482.20.0060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other tapered roller bearings including cup and cone assemblies entered as a set with cups having an outside diameter exceeding 102 mm. The rate of duty will be 5.8 percent ad valorem.
The information provided indicates the Tapered Roller Bearings and Cone Assemblies will be produced in Russia. You state the Cup Forgings will be supplied by manufacturers in China, India, or Russia. The Cup Forgings will then be subjected to finish machining, grinding, and heat treating operations in Russia. After this process, a phosphate coating is applied. It is said in your submission, the finish machining process transforms the Cup forgings into a more detailed part.
In regards to the Cone Forgings, the information provided states these articles are from U.S. or Russia. As with the Cup Forgings, the Cone Forgings also undergo finish machining, grinding, and heat treating operations in Russia and after these manufacturing processes are completed a phosphate coating is applied.
The Tapered Rollers will be obtained in a heat treated condition from the U.S. The finish grinding undergone by the Rollers will occur in Russia. The Cages will also be obtained from suppliers in the U.S.
It is stated that the finished Cup, Cone and Roller components will be assembled in Russia and as a result of the processing and assembly in Russia, the Tapered Roller Bearing Cup and Cone Assemblies will meet the standards of the American Association of Railroads for use in rail operations.
For country of origin marking purposes, a substantial transformation of an imported article occurs when it is used in manufacture which results in an article having a name, character, or use differing from that of the imported article. On the other hand, if the manufacturing or combining process is merely a minor one which leaves the identity of the imported article intact, a substantial transformation has not occurred and an appropriate marking must appear on the imported article so that the consumer can know the country of origin. Uniroyal, Inc. v. United States, 3 CIT 220, 542 F. Supp. 1026, 1029 (1982), aff'd, 702 F.2d 1022 (Fed. Cir. 1983).
We find that the processes and assembly in Russia, which based on the information provided allow the Tapered Roller Bearing Cup and Cone Assemblies to function, result in a substantial transformation. Therefore, the country of origin of the Tapered Roller Bearing Cup and Cone Assemblies is Russia.
A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Sandra Martinez at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division