HQ 087462
OCT 22 1990
CLA-2:CO:R:C:G 087462 JAS
Richard G. Seley
Rudolph Miles & Sons, Inc.
P.O. Box 144
El Paso, Texas 79942
RE: Pillow Block
Dear Mr. Seley:
In your letter of June 22, 1990, on behalf of Emerson
Power Transmission, Corp., Ithaca, N.Y., you inquire as to the
tariff status of pillow blocks assembled in Mexico from
components of U.S., Mexican and Japanese origin. A sample was
submitted. Our ruling follows.
FACTS:
Ball bearings (consisting of antifriction balls separated
by plastic elements enclosed in an inner and outer race) of
Japanese origin and grease nipples called Zerk fittings, and
pressure sensitive name plates, both of U.S. origin, are
shipped to Mexico. In Mexico, a block housing is cast and
machined to accommodate the bearing's outer race, and a hole is
drilled and tapped for the grease nipple. The bearing and one
nipple are then assembled into the housing, and the name plate
applied. The resulting pillow block ball bearing assembly or
housed bearing will be used in heavy machinery to support a
rotating journal, shaft or other part.
The bearings represent approximately 38 percent and the
U.S. origin components approximately 4 percent of the estimated
cost or value of the completed article. The pillow block
housing represents approximately 17 percent of the cost or
value of the completed article, while the Mexican assembly
process, including certain fixed and variable overhead costs,
represents 41 percent of the cost or value of the final
article.
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ISSUE:
Whether the ball bearing of Japanese origin has been
substantially transformed in Mexico so that the pillow block or
housed bearing assembly, when returned to the Customs
territory, will be regarded as a product of Mexico for duty
rate purposes, for country of origin marking purposes, and for
purposes of the antidumping duty order on Japanese ball
bearings.
LAW AND ANALYSIS:
General Rule of Interpretation (GRI 1), Harmonized Tariff
Schedule of the United States Annotated (HTSUSA), states in
part that for legal purposes, classification shall be
determined according to the terms of the headings and any
relative section or chapter notes and, provided the notes do
not require otherwise, according to GRIs 2 through 6. Under
the authority of GRI 1, upon return to the Customs territory
the pillow block assembly will be provided for in heading 8483,
as bearing housings, housed bearings and plain shaft bearings.
We agree with your conclusion that actual classification will
be under the provision for housed bearings incorporating ball
bearings, in subheading 8483.20.8040, HTSUSA.
In order for the ball bearing of Japanese origin to be
considered substantially transformed in Mexico, so as to be
regarded as a product of Mexico for purposes of the antidumping
duty order, the evidence must show that the processing or
assembly in Mexico will result in a product other than or
materially different from its constituent components. That is,
a new and different article of commerce must emerge from
Mexico, one having a new name, character, or use. Anheuser-
Busch Brewing Association v. United States, 207 U.S. 556
(1908). A mere change in a product's name, without more, is a
relatively unimportant consideration in most cases. As to
character and use, however, there must be evidence to show that
the processing in Mexico transforms the Japanese ball bearing
in such a way that it is no longer the essence of the pillow
block.
A bearing block or pillow block is an iron casting or
housing that supports a journal shaft or other part as it turns
on the balls of the bearing within. It functions as an anti-
friction device to convert sliding friction to rolling
friction. The very essence of the assembled article is the
ball bearing which is clearly identifiable in the assembly and
is the actual anti-friction element. The block or housing
serves merely to secure the bearing to a machine and to support
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the bearing and shaft as the shaft rotates. In our opinion,
the ball bearing has not lost its identifying characteristics
by virtue of having been assembled in the pillow block. We
conclude, therefore, that the ball bearing of Japanese origin
has not been substantially transformed by the assembly
operation in Mexico. The pillow block entering the Customs
territory will be considered a product of Japan for tariff
purposes.
We are informed that Antidumping Duty Order A-588-804
covers not only antifriction bearings mounted or unmounted
(other than tapered roller bearings) and parts thereof, from
Japan, but encompasses ball bearing type pillow blocks and
parts thereof as well. You may confirm this by writing the
Office of Antidumping Investigations, Import Administration,
Department of Commerce, Washington, D.C. 20230.
HOLDING:
Under the authority of GRI 1, the pillow block or housed
bearing incorporating roller bearings, a product of Mexico, is
provided for in heading 8483. It is classifiable in subheading
8483.20.4080, HTSUSA, dutiable at the rate of 5.7 percent ad
valorem.
This ruling applies for duty rate purposes, for country of
origin marking purposes, and for purposes of the antidumping
duty order on antifriction bearings from Japan.
The question relating to the partial exemption from duty
allowed by heading 9802.00.80 will be answered separately.
Sincerely,
John Durant, Director
Commercial Rulings Division