CLA-2 CO:R:C:G 082932 VEA
Ms. Beverly J. Nichols, Manager
Customs, Purchasing and Transportation
ITT Automotive Parts Supply Division
Distribution Center
8085 Production Avenue
Florence, Kentucky 41042-3046
RE: Classification of unfinished automotive brake rotors and
drums imported from Canada
Dear Ms. Nichols:
This letter is in response to your request for
reconsideration of a New York ruling dated July 15, 1988 (File
# 830906), classifying brake drums and rotors.
FACTS:
The initial request for classification states that the
merchandise at issue consists of two classes of unfinished
automotive brake components, rotors and drums. The parts are
imported from ITT's Canadian plant to its divisions in the U.S.
The brake rotors are cast iron and are primarily used on the
front wheels of vehicles. The three kinds of rotors include:
an integral rotor, a disc rotor and a composite disc rotor.
The integral rotor has its hub and rotor cast as one part.
These parts also have bearing cups and wheel studs. The disc
rotors do not have the hub as an integral part of the rotor.
They are gray iron casting machined with out wheel studs or
bearing cups. Some newer vehicles also utilize a composite
disc rotor which has a steel stamping as the hat section of the
rotor.
- 2 -
The second class of automotive brake components, brake
drums, are also used on the rear of the vehicles and consist of
fullcast or allcast brake drums. The fullcast or allcast drum
is also made of cast iron and is principally used in light
trucks. The composite brake drum has a steel welded plate
molded into the finished drum. The outside braking surface of
the drum is cast iron.
You submitted a request to classify this merchandise on
June 24, 1988 to Customs' New York office. In a letter dated
July 15, 1988 (File # 830906), New York ruled that the
merchandise was classified under the provision for brake drums
and rotors under subheading 8708.39.50 and dutiable at a rate
of 3.1 percent ad valorem.
On October 5, 1988, you submitted a request for
reconsideration of this ruling. This letter is in response to
that request.
ISSUE:
Whether unfinished allcast brake drums and rotors are
properly classified under subheading 8708.39.50 and dutiable at
a rate of 3.1 percent ad valorem, or subheading 8708.99.30 and
subject to a free rate of duty.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) govern
classification under the Harmonized Tariff Schedules (HTS)
There are six GRI's. GRI 1 provides, for legal purposes,
classification should be determined according to the terms of
the heading and any relative section or chapter notes.
According to GRI 1, the primary consideration in classifying
goods should be given to the language of the heading.
There is no dispute as to the applicable heading in this
case. Both the importer and the New York office agree that the
brake parts should be classified under heading 8708 providing
for parts and accessories of the motor vehicles of headings
8701 to 8705. Since the issue in this case involves the proper
subheading for classification, we look to GRI 6, which states
that for legal purposes, the classification of goods in the
subheadings of a heading shall be determined according to the
terms of the subheadings and any related subheading notes and
on the understanding that only subheadings at the same level
are comparable. Pursuant to GRI 6, as with GRI 1, the primary
consideration in classifying goods should be given to the
language of the subheading which must be read in conjunction
with any relevant notes.
- 3 -
The competing subheadings at issue, or as in this case,
the competing levels of indentation for the subheadings,
provide:
8708 Parts and accessories of the motor vehicles
of headings 8701 to 8705:
* * * * *
Brakes and servo-brakes and parts thereof:
* * * * *
8708.39 Other:
* * * * *
Other parts and accessories:
* * * * *
8708.99 Other
Under GRI 6, subheading 8708.39 is the proper subheading
for classification. The language of 8708.39 specifically lists
brake drums and parts thereof, the merchandise at issue. The
importer's argument that this merchandise should be classified
in subheading 8708.99 is incorrect, since under GRI 3(a), a
subheading in which the language provides the most specific
description for the merchandise is the preferred subheading for
classification and, in this case, is not superseded by a
subheading in which the language of the subheading only
provides for other parts of vehicles.
Although the drums and rotors are imported in an
unfinished condition, this would not preclude classification
under subheading 8708.39. GRI (2)(a) states that any reference
in a subheading 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.
Essential character is determined by looking at the
nature of the material or component and its role in its
unfinished state to its overall use. The rotors and drums in
this case have the shape of the finished products, i.e. rotors
and drums, but they must undergo a series of finishing
processes before they can be used as finished products. These
processes include machining (cutting the excess metal off so
that the drum or rotor meets the buyer's individual
specifications), grooving, painting and coating.
- 4 -
The fact that this merchandise cannot be used in
its unfinished condition does not affect our decision to
classify it under 8708.39. Under GRI 2 (a), incomplete or
unfinished articles, which are not ready for direct use, but
which have the approximate shape or outline of the finished
article or part, and which can only be used for completion into
the finished article, are classifed as the completed article.
The unfinished brake drums and rotors in this case are imported
in the shape of brake drums and rotors and need only be
machined to tolerances. Thus, they have the essential character
of the finished products when they are imported.
HOLDING:
Allcast brake drums and rotors are properly classified
in subheading 8708.39.50 and are dutiable at a rate of 3.1
percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division