CLA-2-76:OT:RR:NC:N1:117
Mr. John M. Gurley
Arent Fox LLP
555 West Fifth Street, 48th Floor
Los Angeles, CA 90013-1065
RE: The tariff classification of aluminum profiles from Russia
Dear Mr. Gurley:
In your letter dated April 10, 2018, you requested a tariff classification ruling on behalf of your client, VSMPO-Tirus, US.
The products to be imported are identified as unfinished containment rings for use with turbofan aircraft engines. These extruded aluminum alloy profiles are engineered and manufactured in accordance with drawings and specifications provided by the customer. You state that after importation, the extrusions are roll-formed and welded to form a ring and then machined to a final net shape for the specific aircraft engine tolerance and final shape installation in the appropriate aircraft engine.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRI's) 1through 6. The systematic detail of the HTSUSA is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relevant 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, the remaining GRI's may be applied, taken in order.
GRI 2(a), HTSUS states, “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled.
You suggested classification of the unfinished containment ring blanks in heading 8411, as parts of aircraft turbines, pursuant to GRI (2). This office disagrees.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings at the international level. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
According to GRI 2(a), if an incomplete article has the essential character of the complete or finished article of a heading, it is classified as the complete or finished article. The ENs to GRI 2(a)(II) further clarify, “The 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 (e.g., bottle preforms of plastics being intermediate products having tubular shape, with one closed end and one open end threaded to secure a screw type closure, the portion below the threaded end being intended to be expanded to a desired size and shape).
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”.”
The unfinished containment ring blanks under consideration are not shaped as, nor do they resemble the finished product. As a result, it is the opinion of this office that the containment ring blanks are not “blanks” for tariff purposes and, therefore, not unfinished parts of aircraft turbines, and thus, articles of heading 8411.
The applicable subheading for the aluminum profiles will be 7604.29.1000, HTSUS, which provides for aluminum bars, rods and profiles, of aluminum alloys, other, other profiles. The rate of duty will be 5 percent ad valorem.
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 the World Wide Web at https://hts.usitc.gov/current.
On March 8, 2018, President Trump proclaimed additional tariffs and quotas on a number of steel and aluminum mill products. Exemptions have been made on a temporary basis for some countries. Quantitative limitations or quotas may apply for certain exempted countries and can also be found in Chapter 99. Additional duties for steel of 25 percent and for aluminum of 10 percent are reflected in Chapter 99, subheading 9903.80.01 for steel and subheading 9903.85.01 for aluminum. Products classified under HTS subheading 7604.29.1000, unless specifically excluded, are subject to additional duties. At the time of importation, you must report the Chapter 99 number applicable to your product classification in addition to the Chapter 72, 73 or 76 number listed above.
The Proclamations are subject to periodic amendment of the exclusions, so you should exercise reasonable care in monitoring the status of goods covered by the Proclamations and the applicable Chapter 99 numbers.
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 Mary Ellen Laker at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division