CLA-2 RR:TC:MM 959572 DWS
Mr. Charles Routh
Garvey, Schubert & Barer
1191 Second Avenue
Seattle, WA 98101-2939
RE: Reconsideration of HQ 958076; Insulation Blankets for
Aircraft Engine Thrust
Reversers and Struts; Kores Manufacturing Inc. v. U.S.;
Amersham Corp. v. U.S.;
GRI 3(c); Composite Good; 8803.30.00
Dear Mr. Routh:
This is in response to your letter of August 1, 1996, on
behalf of Boeing Commercial Aircraft Group, requesting
reconsideration of HQ 958076, dated October 19, 1995, concerning
the classification of insulation blankets for aircraft engine
thrust reversers and struts under the Harmonized Tariff Schedule
of the United States (HTSUS). We regret the delay in our
response.
FACTS:
The merchandise consists of insulation blankets for aircraft
engine thrust reversers and struts, which are composed of thin
gauge stainless steel, fiberglass cloth, and Min-K, a micro-porous silica material in fine white powdered form. The Min-K is
placed between two pieces of flexible fiberglass cloth which is
stitched horizontally and vertically to form a blanket. The
stainless steel is formed into a contoured, crest-like shape,
then folded under and spot welded to encase the blanket on both
sides in the manner of a frame.
These blankets function primarily to provide thermal
protection for thrust reversers and support struts against the
heat generated by engines for the Boeing 757 class aircraft.
Complete insulation blankets are cut-to-size and contoured, and
are mechanically fastened to the inner wall of a thrust reverser
and at the point where a strut pylon joins the nacelle. Thrust
reversers are attached to cowlings or nacelles, which are the
outer metal covers which house the aircraft's engines but are not
integral to the engines. Struts are structural members that
connect the engine to the wings.
When the thrust reversers are deployed by the pilot, this
action repositions movable doors incorporated in the thrust
reverser which diverts air entering the front of the nacelle over
contoured vanes or louvers called cascades to produce reverse
thrust.
ISSUE:
Whether the insulation blankets are classifiable under
subheading 8803.30.00, HTSUS, as other parts of airplanes, or
under subheading 7019.59.40, HTSUS, as other woven fabrics.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
The subheadings under consideration are as follows:
8803.30.00: [p]arts of goods of heading 8801 or 8802:
[o]ther parts of airplanes
or helicopters.
Goods classifiable under this provision receive duty-free
treatment.
7019.59.40: [g]lass fibers (including glass wool) and
articles thereof (for example,
yarn, woven fabrics): [o]ther woven
fabrics: [o]ther: [o]ther.
The general, column one rate of duty for goods classifiable
under this provision
is 8 percent ad valorem.
In HQ 958076, based upon GRIs 3(b) and 3(c), we held the
insulation blankets to be composite goods classifiable under
subheading 7019.20.40, HTSUS (the predecessor provision to
subheading 7019.59.40, HTSUS), and not under subheading
8803.30.00, HTSUS. With regard to that ruling, Boeing claimed
that the insulation blankets are not parts of the aircraft engine
but are integral to nacelles and struts. It was argued that
because nacelles and struts are provided for under subheading
8803.30.00, HTSUS, the insulation blankets should be similarly
classifiable.
You contend that the insulation blankets are correctly
classifiable under subheading 8803.30.00, HTSUS, and that the
parts issue is pertinent to this case.
In HQ 958076, in ruling that the insulation blankets were
accessories and not parts of airplanes, we stated that:
[t]he plane's engines are complete and fully functional as a
means of propulsion
or thrust, and the struts are structural members, both
without regard to the thermal
insulation blankets. There is no compelling argument that
these articles are parts
for tariff purposes because neither the engine nor strut
depends on a thermal
insulation blanket for its completeness or function. . .
Whether an article is a part of another article depends on
the nature of the so-called "part" and its usefulness, function
and purpose in relation to the article in which it is designed to
serve. Kores Manufacturing Inc. v. U.S., 3 CIT 178, 179 (1982),
aff'd appeal No. 82-83 (C.A.F.C. 1983). As you claim, the only
application of the insulation blankets "is to protect airplane
structures, namely; the nacelle and its components, and the strut
from the tremendous heat generated by the engine, and more
importantly, to act as a fire barrier between the engine and the
nacelle and pylon components, and ultimately; the airplane
itself." However, the engines, struts, thrust reversers, and the
nacelle housing operate and are not dependent upon the insulation
blankets for them to function completely. Therefore, we agree
with the holding in HQ 958076 that the blankets are not parts
classifiable under heading 8803, HTSUS, but are classifiable
under heading 7019, HTSUS.
In your submission, you tie the safety function of the
insulation blankets with certification procedures by the Federal
Aviation Administration (FAA) in demanding that the blankets must
be parts. Specifically, you state that:
[i]nstallation of the insulation blanket assemblies is a
mandatory prerequisite
condition for operation of the aircraft, and for the
aircraft passing final inspection
and receiving its Airworthiness Certificate from the Federal
Aviation
Administration.
Regardless of the FAA requirement, it is irrelevant when
considering the proper tariff classification of the insulation
blankets. It is well established that statutes, regulations and
administrative interpretations relating to "other than tariff
purposes" are not determinative of customs classification
disputes. Amersham Corp. v. U.S., 5 CIT 49 (1983).
You cite the following from a U.S. Department of Commerce
booklet entitled, "Trade in Civil Aircraft":
[a]rticles which have a civil aircraft manufacturer's parts
number or approval by the
Federal Aviation Administration (FAA) or a recognized
foreign air-worthiness
authority are presumed to be sufficiently dedicated to
aircraft use to be
considered an aircraft part for the purpose of receiving
duty-free treatment.
However, the paragraph following the above cite states that:
[a]s previously indicated, while the Agreement covers all
civil aircraft, engines,
flight simulators, parts, components and subassemblies, the
provisions relating
to elimination of duties apply only to the items
classifiable under the listed
tariff headings. These listed items cover an estimated 95
percent of the value of
trade in civil aircraft. (emphasis supplied).
Although parts of civil aircraft are included in the tariff
headings listed in the Annex to the booklet, the articles covered
by heading 7019, HTSUS, are not.
Because the insulation blankets are precluded from
classification under subheading 8803.30.00, HTSUS, as was held in
HQ 958076, they are described under heading 7019, HTSUS, and are
so classifiable under subheading 7019.59.40, HTSUS.
HOLDING:
The insulation blankets for aircraft engine thrust reversers
and struts are classifiable under subheading 7019.59.40, HTSUS,
as other woven fabrics.
EFFECT ON OTHER RULINGS:
HQ 958076 is affirmed.
Sincerely,
John Durant, Director
Tariff Classification
Appeals Division