CLA-2: OT:RR:CTF:TCM H230059 TNA
Mr. Jon R. Weiner
Customs Compliance Specialist
Rolls Royce North America
2001 S. Tibbs Avenue
Speed Code S36
Indianapolis, IN 46241
RE: Modification of NY N041816; Classification of a plastic bushing with a lip
Dear Mr. Weiner:
This is in response to your request, dated May 30, 2012, filed on behalf of Rolls Royce, North America (“Rolls Royce”) for reconsideration of New York Ruling Letter (“NY”) N041816, dated November 13, 2008, as it pertains to the classification of a plastic bushing with a lip under the Harmonized Tariff Schedule of the United States (HTSUS). We have found this ruling to be partly in error. For the reasons that follow, we hereby modify NY N041816.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to modify NY N041816 was published on July 31, 2013, in Volume 47, Number 32, of the Customs Bulletin. CBP received no comments in response to this notice.
FACTS:
The subject merchandise consists of a plastic bushing with a lip or flange that is used in a steering assembly for a marine water-jet propulsion system. The principal function of this component is to provide a smooth interface between the moving surface of the water-jet’s steering arms and the fixed surface of the distance sleeve. It consists of a base and a top that has a circular opening. When fitted together with the rest of the steering assembly, a steel distance sleeve is inserted into the bushing, and a nut is affixed to the bottom of the bushing. Steering arms fit around the distance sleeve and are fixed on top by a bolt. When finished, the steering assembly functions by way of the steering arms rotating on the outer surface of the bushing and on the axis formed by the bolt, nut, bushings and distance sleeve.
The subject bushing provides a smooth sliding surface between the moving components to mediate against the friction inherent in the rotation of the steering arms. Even the flanged surface of the bushing serves to mediate against friction, allowing the flat surfaces of the steering arms to move with respect to each other and with respect to the flat surfaces of the fixing bolt assembly.
The following is a picture of the components of the steering assembly:
ISSUE:
Whether a plastic bushing that is used in a marine water jet propulsion system is classified in heading 3926, HTSUS, as an “Other article of plastics,” or in heading 8483, HTSUS, as “Transmission shafts (including camshafts and
crankshafts) and cranks”?
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.
The HTSUS headings at issue are as follows:
3926 Other articles of plastics and articles of other materials of headings 3901 to 3914:
8483 Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof:
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding, and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System at the international level. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
The EN to heading 3926, HTSUS, states, in pertinent part:
This heading covers articles, not elsewhere specified or included, of plastics (as defined in Note 1 to the Chapter) or of other materials of headings 39.01 to 39.14.
The EN to heading 8483, HTSUS, states, in pertinent part, that:
(B) BEARING HOUSINGS AND PLAIN SHAFT BEARINGS
… On the other hand plain shaft bearings are classified in this heading even if they are presented without housings. They consist of rings of anti-friction metal or other material (e.g., sintered metal or plastics). They may be in one piece or in several pieces clamped together, and form a smooth bearing in which a shaft or axle turns.
NY N041816 classified two different components of the steering gear of a marine water-jet propulsion system: a bronze bushing, classified in in heading 8483, HTSUS, as a plain shaft bearing, and a plastic bushing, classified in heading 3926, HTSUS, as an article of plastic. You state that both bushings function the same way and should both be classified as shaft bearings of heading 8483, HTSUS.
In NY N041816, we stated that the bronze bushing was “a part of lifting arm mechanism of the reversing bucket. It may also be used on the steering gear mechanism of some water-jets in place of plastic bushings.” This supports Rolls’ Royce’s contention that the two types of bushings perform the same functions.
The plastic bushing works to alleviate friction in the steering assembly. It also forms a smooth bearing on which the steering arms turn. Thus, in the functioning of the steering assembly as described above, the subject plastic bushing serves as both a radial and an axial bearing, the form and function of which are both described by heading 8483, HTSUS. See EN 84.83. Furthermore, in NY N041816, CBP ruled that the bronze bushing may take the place of the plastic bushing on the steering gear mechanism of some water jets. Therefore, both the plastic and the bronze bushing should be classified in the same provision of the HTSUS. As such, the plastic bushing is classified in heading 8483, HTSUS. This conclusion is consistent with prior CBP rulings. See, e.g., NY N051335, dated February 26, 2009; NY E82314, dated June 10, 1999; NY E89673, dated November 22, 1999.
Lastly, we note that heading 3926, HTSUS, where NY N041816 classified the subject merchandise, is a residual heading. Merchandise is only classified there when it is not described elsewhere in the nomenclature. See EN 39.26. Because we have found the subject bushing to be classified in heading 8483, HTSUS, it is precluded from classification in heading 3926, HTUS.
HOLDING:
Under the authority of GRI 1, the subject plastic bushing is provided for in heading 8483, HTSUS. Specifically, it is classified in subheading 8483.30.80, HTSUS, which provides for “Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof: Bearing housings; plain shaft bearings: Other.” The column one, general rate of duty is 4.5%.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the Internet at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY N041816, dated November 13, 2008, is modified with respect to the classification of the plastic bushing with a lip. The classification of the other items described therein remains unchanged.
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division