CLA-2 RR:IA 004449 SK
Jack Lee, President
Versatech Industries
210 Barton Road
Weston, Ont., Canada M9M 2W6
Re: Revocation of Headquarters Ruling Letter 087392
(8/6/92); Request for Internal Advice 15/90; Tariff
Classification of Composite Cork/Rubber Gasket Material
and Finished Gaskets
Dear Sir:
On August 6, 1992, this office issued you Headquarters
Ruling Letter (HRL) 087392 in which we classified:
Gasket material made of a cork/rubber composite material in
subheading 4504.10.1000, Harmonized Tariff Schedule of the
United States (HTSUS);
Finished gaskets of the above material in subheading
8409.91.9190, HTSUS, (currently provided for in the 1998
HTSUS under subheading 8409.91.1080) which provides for
"[P]arts suitable for use solely or principally with the
engines of heading 8407 or 8408: Other: Suitable for use
solely or principally with spark-ignition internal
combustion piston engines (including rotary engines): Other:
For vehicles of subheading 8701.20, or heading 8702, 8703 or
8704" or, if for compression-ignition internal combustion
engines of heading 8408, in subheading 8409.91.9990; and
Finished gaskets of the above material for use in automotive
transmissions in subheading 4504.90.2000 (currently provided
for in the 1998 HTSUS under subheading 4504.90.0000).
Upon further consideration, HRL 087392 is deemed to be in error
as regards the classification of the cork/rubber gasket material
and the finished gaskets.
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 (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993),
notice of the proposed revocation of HQ 087392 was published on
October 28, 1998, in the Customs Bulletin, Volume 32, Number 43.
FACTS:
Two classes of merchandise are the subject of this
revocation: finished gaskets and gasket material in sheet or
strip form. Both are made of a cork and rubber composite
material. The composition of the material varies from 60 to 80
percent by weight rubber and 20 to 40 percent by weight cork.
The cork and rubber are combined in Portugal and formed into
blocks. The blocks are shipped to Canada where the importer
slices the large pieces into sheets or elongated strips. Some of
this material is shipped into the United States in sheet or strip
form; some is cut to final shape as gaskets and then imported.
ISSUES:
What is the proper classification of the composite
cork/rubber gasket material?
What is the proper classification of the finished gaskets?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is governed by
the General Rules of Interpretation (GRI's). GRI 1 provides that
classification shall be determined according to the terms of the
headings and any relative section or chapter notes. Merchandise
that cannot be classified in accordance with GRI 1 is to be
classified in accordance with subsequent GRI's, taken in order.
Classification of the Gasket Material
In HRL 087392, this office determined that the subject
cork/rubber composite material was classifiable in heading 4504,
HTSUS, which provides for "[A]gglomerated cork (with or without a
binding substance) and articles of agglomerated cork," by
application of GRI 1. In support of this classification, it was
noted that the heading text described the subject material and
the Explanatory Note to heading 4504, at page 717, described
agglomerated cork with a binder of vulcanized rubber.
Upon further consideration of this matter, Customs has
determined that the rubber component of the subject material is
described by heading 4008, HTSUS, which provides for "[P]lates,
sheets, strip, rods and profile shapes, of vulcanized rubber
other than hard rubber." As the subject material is described
in equally specific terms by headings 4008 and 4504, HTSUS,
classification is pursuant to a GRI 3(b) analysis.
GRI 3(b) provides:
"(b) Mixtures, composite goods consisting of different
materials
or made up of different components, and goods put up
in sets
for retail sale, which cannot be classified by
reference to 3(a),
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 (EN) VIII to GRI 3(b) states:
"[T]he factor which determines essential character
will vary as between
different kinds of goods. It may, for example, be
determined by the
nature of the material or component, its bulk,
quantity, weight
or value, or by the role of a constituent material in
relation to the use
of the goods."
In applying these criteria to the material at issue, it is
noted that the rubber component is of greater weight and value
than the cork component. Moreover, the rubber component
contributes an important function to the material's end use as a
gasket. A gasket is a seal or packing used to make a pipe or
other joint air- or fluid-tight. As vulcanized rubber is
compressible, it enhances a gasket's ability to maintain a seal
when joints compress or expand. Vulcanized rubber is also
impermeable to gas and liquid, thereby contributing to a gasket's
ability to maintain a seal.
Based on the foregoing, Customs views the rubber component
as imparting the essential character to the composite material.
Accordingly, classification is proper in subheading 4008, HTSUS.
Classification of the Finished Gaskets
In HQ 087392, Customs determined that the gaskets for use in
automotive engines were classifiable in heading 8409, HTSUS.
Heading 8409 falls within Section XVI of the Nomenclature. Legal
Note 1(a) to Section XVI excludes "articles of a kind used in
machinery ... of vulcanized rubber other than hard rubber
(heading 40.16)." As these gaskets are for use in machinery and
are made of vulcanized rubber, classification in heading 8409,
HTSUS, is precluded by direction of the Section Note.
Similarly, as the gaskets for use in automotive
transmissions are made of vulcanized rubber, they are not
classifiable as articles of agglomerated cork in heading 4504,
HTSUS.
The gaskets at issue in HRL 087392 are made of vulcanized
rubber and are thereby classifiable in subheading 4016.93.1050,
HTSUS, which provides for "[O]ther articles of vulcanized rubber,
other than hard rubber: Other: Gaskets, washers and other seals:
Of a kind used in the automotive goods of chapter 87... Other...
."
HOLDING:
HRL 087932 is hereby revoked.
The gasket material is classifiable in subheading
4008.10.0000, HTSUS, which provides for "[P]lates, sheets, strip,
rods and profile shapes, of vulcanized rubber other than hard
rubber: of noncellular rubber: plates, sheets and strip,"
dutiable at a rate of 0.7 percent ad valorem.
The finished gaskets are classifiable in subheading
4016.93.1050, HTSUS, which provides for "[O]ther articles of
vulcanized rubber, other than hard rubber: Other: Gaskets,
washers and other seals: Of a kind used in the automotive goods
of chapter 87... Other," dutiable at a rate of 2.7 percent ad
valorem.
In accordance with 19 U.S.C. 1625(c)(1), this ruling will
become effective 60 days after its publication in the Customs
Bulletin. Publication of rulings or decisions pursuant to 19
U.S.C. 1625(c)(1) does not constitute a change of practice or
position in accordance with section 177.10(c)(1), Customs
Regulations (19 CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division