CLA-2 CO:R:C:G 085222 TLS
Mr. David R. Ribal
Standun, Inc.
207 Hindry Avenue
Inglewoood, California 90308
RE: Bumper hitch plate made of steel
Dear Mr. Ribal:
You request a ruling on the proper classification of a
bumper hitch plate under the Harmonized Tariff Schedule of the
United States Annotated (HTSUSA). Your letter dated November 12,
1987 has been submitted to this office for a reply.
FACTS:
The bumper hitch plate consists of four components: two
vertical brackets, one hitch, and one stiffener. Each component
is made of steel and is cut and formed to shape before they are
assembled. They are assembled together to form the hitch plate
through a welding process. The final product is used as a rear
bumper with towing capabilities on motor vehicles.
The vertical brackets are manufactured from lengths of hot-
rolled steel bar measuring 0.25 of an inch by 6 inches. The bar
is fed into a punch press, notched at two corners on the same
side, pierced with two holes, and cut to 8 inches in length; the
cut-to-length section is then formed, in a press brake, into a
left-hand or right-hand bracket measuring approximately 6.7
inches on the long side and 1.25 inches on the short side. The
hitch plate is manufactured from the same size of steel bar. The
bar is fed into a punch press, punched with three functional
holes, and cut to a length of 35.5 inches. It is then placed in
a press brake and formed into an angle measuring approximately
0.75 of an inch by 5.25 inches (inside measure). The stiffener
is manufactured from the same size of steel bar. It is cut to a
length of 24 inches, sheared or split into two pieces, pierced
with three holes to match those on the hitch plate, and then
formed, in a press brake, into an angle measuring approximately
0.75 of an inch by 2.25 inches. This entire manufacturing
process is performed at an in-bond facility in Mexico. The hot-
rolled steel bar is exported from the United States for this
purpose.
ISSUES:
Is the bumper hitch plate properly classifiable under the
following HTSUSA heading:
8708, HTSUSA, covering parts and accessories of motor vehicles
of headings 8701 to 8705.
It the bumper hitch plate eligible for partial duty
exemption as provided for under the following HTSUSA subheading:
9802, HTSUSA, covering any article of metal (as defined in U.S.
note 3(d) of this subchapter) manufactured in the United States
or subjected to a process of manufacture in the United States, if
exported for further processing, and if the exported article as
processed outside the United States, or the article which results
from the processing outside the United States, is returned to the
United States for further processing.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI) govern the
classification of articles under the HTS. GRI 1 requires that
classification be determined according to the terms of the
headings and any relative section or chapter notes. The bumper
hitch plate is specifically designed and manufactured to be used
as a part of a motor vehicle. In particular, this article will
be used on pick-up trucks, which are generally classified under
HTSUSA heading 8704. It cannot be used for any other purpose.
While it is true that articles made of steel are covered under
other HTSUSA headings, heading 8708 provides a more specific
description of the subject article. Therefore, we find that the
bumper hitch plate is properly classifiable under heading 8708.
Subheading 9802.00.60 (formerly Tariff Schedules of the
United States (TSUS) item 806.30) imposes a dual "further
processing" requirement on metal articles--one foreign, and when
returned, one domestic. Metal articles satisfying these
statutory requirements may be classified under 9802.00.60 with
duty only on the value of such processing performed outside the
United States upon compliance with 19 C.F.R. 10.9. Customs has
previously held that for purposes of subheading 9802.00.60, the
term "further processing" has reference to processing that
changes the shape of the metal or imparts new and different
characteristics which become an integral part of the metal itself
and which did not exist in the metal before processing. Thus,
further processing includes machining, grinding, drilling,
threading, punching, forming, plating, and the like, but does not
include painting or the mere assembly of finished parts by
bolting, welding, etc. C.S.D. 84-49, 18 Cust. Bull. 957 (1983)
(emphasis added).
In the present case, the foreign processing by notching,
piercing and cutting to length clearly changes the shape of the
metal and constitutes further processing within the meaning of
the statute. However, the domestic processing by welding just as
clearly does not constitute further processing, as it results in
the mere assembly of the bumper hitch plate to the center of the
bumper. Accordingly, the bumper hitch plate is ineligible for
the partial duty exemption available under subheading 9802.00.60
when returned to the United States.
HOLDING:
The bumper hitch plate is classified under HTSUSA subheading
8708.10.00 as a part of a motor vehicle of heading 8704.
The bumper hitch plate is not eligible for partial duty
exemption as provided for under HTSUSA subheading 9802.00.60 and
thus will be dutiable on its full value upon importation.
Sincerely,
John Durant, Director
Commercial Rulings Division