CLA-2 CO:R:C:G 083126 APS 830922
Mr. Kenneth G. Weigel Esq.
Morgan, Lewis & Bockius
1800 M Street, N.W.
Washington, D.C. 20036
RE: Rubber coated stainless steel sheet. Headquarters letter
082295 revoked.
Dear Mr. Weigel
This decision pertains to your request for
reconsideration of our letter 082295 of June 10, 1988.
FACTS
The merchandise is a flat rolled stainless steel sheet
measuring 210mm x 300mm. It is coated with a nitrile
butadiene vulcanized rubber and is used to manufacture
automotive head gaskets for spark ignition internal combustion
engines.
You further describe the product as follows:
The rubber withstands heat because of its
being bound to steel. The rubber used in
this product can withstand heat of up to
180` C. or 356` F. This is possible because
the rubber is firmly adhered to the surface
of the stainless steel with a coating
thickness of about 30 microns. Because of
this adhesion, the properties of the rubber,
such as tensile strength and elongation,
will not deteriorate in temperatures of up
to 180` C., although alone the rubber
deteriorates at approximately 120` C.
The product is specically designed and
manufactured to be used for the production
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of gaskets. Its use elsewhere is
economically prohibitive. One of the most
important features of the article is that
its surface is soft so the gasket can
obtain a good seal. Stainless steel alone
cannot be used as a gasket because it is
too hard to conform to the surface of the
flange and to form the required seal. By
the stainless steel with this thin layer
of rubber, in ideal article for the
production of gaskets has been created.
The article has the strength of steel and
the softness of rubber. This product has
been developed exclusively for gasket use,
and its uses are quite different from those
of stainless steel sheet. The rubber
coating is not for protection of the steel
sheet.
ISSUE:
The first issue to be decided is whether coating rubber
is a surface treatment or finishing operation of a basic steel
mill product or whether coating causes a new product to be
created which is no longer a basic shape. If the former,
classificaiton will be under subheading 7220.90.00, Harmonized
Tariff Schedule of the United States (HTS) as further worked
stainless steel. If the latter, classification will be under
subheading 7326.90.90 as articles of steel or 4016.99.50 as
other articles of vulcanized rubber other than hard rubber.
If the material is determined to be other than a basic
shape then the issue is whether the essential character is
imparted by the rubber or the stainless steel.
LAW AND ANALYSIS:
We are satisfied from the information you have provided
that coating with rubber creates a new product different from
a "further worked" basic mill shape.
Finished mill products may be subjected to further
finishing treatments and such treatments do not affect
classification as a flat rolled product. However, these
treatments must be for improving the properties or appearance
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of the metal, protecting it against rusting and corrosion, and
so forth. Harmonized Commodity Description and Coding System
Explanatory Notes, Volume 3, at page 981. Therefore, even if
coating with rubber were to be considered a surface treatment
such as coating with plastics, in this case it would not be
for improving the properties or appearance of the metal,
protecting it, or the like.
It is clear from your description that the properties of
the metal remain the same but the properties of the rubber,
mainly resistance to heat, are improved by combining the two
materials. Thus the treatment will affect classification as a
flat rolled product.
The stainless steel sheets are goods consisting of more
than one material (rubber and steel) and classification shall
be according to the principles of HTS General Rule of
Interpretation (GRI) 3. HTS GRI 2(b).
We consider the sheets to be composite goods for purposes
of GRI 3(a) which provides that when two or more headings each
refer to part only of the materials contained in a composite
good, those headings are to be regarded as equally specific in
relation to those goods. The two equally specific headings
are for other articles of vulcanized rubber in heading
4016.99.50 and other articles of steel in heading 7326.90.90.
GRI 3(b) provides that composite goods shall be
classified as if they consisted of the material which gives
them their essential character. However, it is our
determination that neither the rubber nor the steel gives the
sheets their essential character. The main characteristics of
the rubber, resistance to heat and the ability to flow into
and seal flaws in the engine block and head are equalled by
the support for the rubber, the necessary rigidity, and the
ability to be cut to various shapes provided by the steel.
Thus, we find classification must be accomplished
according to GRI 3(c) which provides that when goods cannot be
classified by reference to rule 3(a) or 3(b) they shall be
classified under the heading that appears last in numerical
order.
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HOLDING:
The rubber coated stainless steel sheets are classifiable
under heading 7326.90.90, HTS.
EFFECT ON OTHER CASES:
Letter 082295, June 10, 1988, was based on incomplete
information regarding the product and is revoked.
Sincerely,
John Durant, Director
Commercial Rulings Division
andersoz library / 083126APS
6cc: Area Dir New York Seaport
ASchifflin:za:02/12/90