CLA-2 CO:R:C:G 086364 HP
Ms. Ann M. Williams
A.N. Deringer, Inc.
30 West Service Road
Champlain, NY 12919-9703
RE: Dref yarn used for construction of automobile clutch facings
are glass yarns.
Dear Ms. Williams:
This is in reply to your letter of January 17, 1990,
concerning the tariff classification of yarn, produced in Canada,
under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA). Please reference your client Garlock du
Canada Limite.
FACTS:
The merchandise at issue consists of "DREF " yarn1, style
number 295 GCR. Additional materials submitted by Garlock state
that the DREF yarn is used exclusively in the production of
friction materials in the automotive industry. The finished
product is commonly knows as clutch facings.
1The DREF 2 friction spinning machine works as follows: the
separation of the individual fibers is carried out by a rotating
carding drum, the sliver retention and the draft being provided
by a specially designed inlet system. The individual fibers are
stripped from the carding drum by centrifugal force and are
transplanted into the nip between the two perforated spinning
drums supported by an air-flow. The fibers are then twisted by
mechanical friction on the surfaces of the two spinning drums,
which rotate in the same direction. Suction through the
perforated assists this process. The formation of the yarn takes
place from the inside out by the superimposition and twisting of
the individual fibers. This guarantees strong inter-fiber
binding. If several slivers are being fed into the machine, the
fibers from the sliver farthest from the outlet are bound into
the yarn core. The spun yarn is drawn off from the yarn forming
zone at speeds of up to 300 m/min by outlet rollers and wound
onto cross-wound bobbins.
The DREF yarn, as imported into the United States, is
constructed of a glass, rayon and cotton sheathe (blended using
conventional carding methods) encasing a core of continuous glass
filaments coated with phenolic. After entry, the end user
impregnates the yarn, then winds the coated yarns together to
form a "biscuit." This biscuit is then pressed and cured to form
the clutch facing. After holes are drilled and edges trimmed,
the facing is ready to be used in the automotive industry.
The composition of the DREF yarn is as follows:
ITEM % RAW MATERIAL
Fiberglass non-continuous 15.00
filament
Cotton fiber 21.25
Fiberglass continuous filament 47.50
Rayon 16.25
ISSUE:
Whether the instant yarns are cordage for technical uses
under the HTSUSA?
LAW AND ANALYSIS:
Heading 5911, HTSUSA, provides for, inter alia, cords,
braids and the like, whether or not coated, impregnated, or
reinforced with metal, of a kind used in industry as packing or
lubricating materials. We have often held that yarn constructed
in this wrapping manner falls under the designation of "cords,
braids and the like." See HRL 085499 of March 29, 1990 (not
required to be twine, rope or braid, only something that re-
sembles, in appearance and use, cord and braid). This yarn,
however, is not used as packing or lubricating materials; indeed,
its sole purpose is in the construction of friction materials.
Classification in heading 5911, HTSUSA, is therefore
inappropriate.
Heading 8708, HTSUSA, provides for, inter alia, motor
vehicle clutches and parts thereof. The Explanatory Notes (EN)
to the HTSUSA constitute the official interpretation of the
tariff at the international level. While not legally binding,
they do represent the considered views of classification experts
of the Harmonized System Committee. It has therefore been the
practice of the Customs Service to follow, whenever possible, the
terms of the Explanatory Notes when interpreting the HTSUSA. The
EN to this heading states:
This heading covers parts and
accessories of the motor vehicles of headings
87.07 to 87.05, provided the parts and
accessories [are]
(i) ... identifiable as being
suitable for use solely or
principally with the above-
mentioned vehicles....
While we agree that, IN THEIR FINISHED FORM, the clutch
facings are so identifiable, the yarn to construct these facings,
in their condition as imported, are not. To illustrate this lack
of identification, the yarns at issue were mistakenly identified
as valve packing yarns not only by this office and our New York
office, but by you as well. In addition, the complex construction
procedure, as described in Note 1, supra, causes us to disallow
classification of the DREF yarns as parts of clutches. Heading
8708, therefore, is inappropriate.
The DREF yarn is composed of both glass and textile. The
General Rules of Interpretation (GRIs) to the HTSUSA govern the
classification of goods in the tariff schedule. GRI 1 states, in
pertinent part, that:
... classification shall be determined according to the
terms of the headings and any relative section or
chapter notes ...
Goods which cannot be classified in accordance with GRI 1 are to
be classified in accordance with subsequent GRIs, taken in order.
GRI 3 states, in pertinent part:
When by application of Rule 2(b) [goods of
more than one material or substance] or for
any other reason, goods are, prima facie,
classifiable under two or more headings,
classification shall be effected as follows:
* * *
(b) Mixtures, composite goods
consisting of different materials
or made up of different components,
... which cannot be classified by
reference to 3(a) [which requires
that goods be classified, if
possible, under the more specific
of the competing provisions], shall
be classified as if they consisted
of the material or component which
gives them their essential
character, insofar as this
criterion is applicable.
Explanatory Note (IX) to GRI 3 provides:
For the purposes of [GRI 3(b)], composite
goods made up of different components shall
be taken to mean not only those in which the
components are attached to each other to form
a practically inseparable whole but also
those with separable components, provided
these components are adapted to one another
and are mutually complementary and that
together they form a whole which would not
normally be offered for sale in separate parts.
[C]lassification [of composite goods] is made according
to the component, or components taken together, which
can be regarded as conferring on the [good] as a whole
its essential character.
The factors which determine essential character of an
article will vary from case to case. It may be the nature of the
materials or the components, its bulk, quantity, weight, value,
or the role a material plays in relation to the use of the goods.
In general, essential character has been construed to mean the
attribute which strongly marks or serves to distinguish what an
article is; that which is indispensable to the structure or
condition of an article.
The glass portion represents 62.5% of the finished yarn, and
approximately 65% of its cost. It provides the yarn with both
its tensile properties and heat resistance. The textile portion,
on the other hand, is present merely to absorb the resins sprayed
on the yarns during the clutch facing. It is our opinion,
therefore, that the glass imparts the essential character of the
DREF yarn.
HOLDING:
As a result of the foregoing, the instant merchandise is
classified under subheading 7019.10.1000, HTSUSA, textile
category 201, as glass fibers (including glass wool) and articles
thereof (for example, yarn, woven fabrics), slivers, rovings,
yarn and chopped strands, yarns, not colored. Articles which
meet the definition of "goods originating in the territory of
Canada" (see General Note 3(c)(vii)(B), HTSUSA) are subject to
reduced rates of duty under the United States-Canada Free Trade
Agreement Implementation Act of 1988. If the merchandise
constitutes "goods originating in the territory of Canada," the
applicable rate of duty is 5.9 percent ad valorem; otherwise, the
general rate of duty is 7.4 percent ad valorem.
The designated textile and apparel category may be
subdivided into parts. If so, visa and quota requirements
applicable to the subject merchandise may be affected. Since
part categories are the result of international bilateral
agreements which are subject to frequent negotiations and
changes, to obtain the most current information available, we
suggest that you check, close to the time of shipment, the Status
Report On Current Import Quotas (Restraint Levels), an issuance
of the U.S. Customs Service, which is updated weekly and is
available at your local Customs office.
Due to the changeable nature of the statistical annotation
(the ninth and tenth digits of the classification) and the
restraint (quota/visa) categories, you should contact your local
Customs office prior to importing the merchandise to determine
the current status of any import restraints or requirements.
Sincerely,
John Durant, Director
Commercial Rulings Division