CLA 2 CO:R:C:G 083052 APS
Category: Classification
Tariff No.: 732.41 732.42 807.00 912.10
8714.96.5000 8714.96.9000
9802.80.00 9902.87.14
District Director of Customs
U.S. Customs Service
880 Front Street, Rm. 5 S 9
San Diego, California 92188
Re: Internal advice request No. 34/88 concerning the tariff classification, marking and allowance for American parts of crank sets for bicycles.
Dear Sir:
This request for internal advice was filed on behalf of Assemble In Mexico, Inc., in your undated memorandum which was forwarded to Headquarters on October 26, 1988.
FACTS:
The imported article will be used as parts of a crank set for bicycles. A crank arm blank will be imported into Mexico from Japan. The crank arm blank is a tubular article approxi
mately 8 inches long with a 1 inch x 1/2 inch cross section. Each end of the blank has an open circular cut out across the cross section. There is also a smaller cut out circle near one
end of the blank.
Three tubular pieces which are to be fitted into the three cut out places will be imported into Mexico from the United States. These pieces are named the sprocket drive boss, the
right pedal boss and the spindle boss.
The American made bosses will be welded into the three cut out circles in Mexico. We understand the operation in Mexico is a TIG or ARC welding process which requires only basic welding skills. This is the only operation which is performed in Mexico.
Upon importation into the United States, a pinch arm is welded to the end of the crank containing the spindle boss, six splines are machined on the inner surface of the spindle boss and
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the boss and pinch arm are split to leave a 1/16inch opening. The crank is then cleaned and chrome plated.
The crank is used in the construction of a bicycle. The pedal is torqued into the pedal boss, the sprocket drive boss is torqued onto the chain sprocket and the spline spindle boss is
placed on the crank spindle. A so called pinch arm bolt is inserted into the pinch arm to "snug up" the crank on the spindle.
ISSUE:
Is the crank arm part of a cotterless crank set? If it is, classification will be under item 732.41, Tariff Schedules of the United States (TSUS) and subheading 8714.96.5000, Harmonized Tariff Schedules of the United States Annotated (HTSUSA). If not
part of a cotterless crank set, classification will be as other parts of bicycles under item 732.42, TSUS, or as other crank gear parts under subheading 8714.96.9000, HTSUSA.
Other issues raised are whether there is an allowance for the American made parts under item 807.00, TSUS (subheading 9802.00.80, HTSUSA) and whether the part must be marked.
LAW AND ANALYSIS:
The article imported into the United States is an unfinished crank arm and classifiable as a part by reason of General Headnote 10(h), TSUS, and General Rule of Interpretation 2(a),
HTSUSA.
A cotter is defined as follows in Webster's Third New International Dictionary, Unabridged (1986):
1a: a wedge shaped or tapered piece
used to fasten together parts of a
machine or structure by being driven
into a tapered opening through one
or all the parts ***
The Random House Dictionary of the English Language, The Unabridged Edition (1973) defines a cotter as:
1. a pin, wedge, key or the like,
fitted or driven into an opening
to secure something or hold parts
together.
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HOLDING:
It is our position that the so called pinch bolt fits very comfortably within these definitions. In fact, the diagram of a cotter in use in Webster's shows an application remarkably
similar to the one under consideration. Thus, we find that the crank is not a cotterless crank.
Furthermore, even if it is found for some reason that the pinch bolt is not a cotter we still maintain that the crank is not a cotterless crank. In Headquarters letter 069847 dated
June 11, 1982, IA 49/82 circulated as C.I.E. N 36/75 the interpretation of "cotterless type crank sets" was fully discussed. It was held that the term "cotterless" was not used in the common sense of "absence of a cotter" but in a commercial sense and "cotterless" referred to the attachment of the crank to the axle piece by mounting bolts and crank arm caps.
OTHER ISSUES RAISED
In order to receive an allowance for the American bosses, they must retain their identity and be subjected to a simple assembly. An examination of the sample showing the article as
imported into the United States shows that the bosses have retained their identity. We understand that the welding process is a simple process requiring a minimum of skills which does not change the composition of the welded material. We find that an allowance should be made for the American components.
Regarding the marking issue, Section 304 of the Tariff Act of 1930, as amended (19 U.S.C. 1304), provides that every article of foreign origin (or its container) imported into the United States shall be marked in a conspicuous place as legibly, indelibly and permanently as the nature of the article (or container) will permit, in such a manner as to indicate to the ultimate purchaser in the United States States the English name of the country of origin of the article.
Section 134.35, Customs Regulations (19 CFR 134.35), provides that an article used in the U.S. in manufacture which results in an article having a name, character, or use differing
from that of the imported article will be considered substantially transformed, and therefore the manufacturer or processor in the U.S. who converts or combines the imported article into
the different article will be considered the ultimate purchaser of the imported article within the contemplation of 19 U.S.C. 1304(a). Accordingly, the article shall be excepted from
marking. However, in accordance with 19 U.S.C. 1304(b) and {134.22, Customs Regulations (19 CFR 134.22), the outermost container of the imported article shall be marked to indicate
the country of origin of the article.
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A prior Customs ruling determined that imported ratchet wrench handles were substantially transformed by further machining in the U.S. In that instance the machining referred to broaching, i.e., cutting teeth into the recessed core opening, plus some additional finishing. Also, a core mechanism was assembled into the core opening in the U.S. Although several things were done to the imported handles, the ruling singles out the broaching process as of particular significance and mentions the specialized machinery and skill required (721562 HL,
October 17, 1988). See also 723271 HL, February 3, 1984, imported plier forgings are substantially transformed by the broaching of teeth and additional finishing operations performed
in the U.S.
It is our opinion that the broaching of teeth into the spline boss, coupled with the additional welding to attach the pinch arm performed in the U.S. constitutes a substantial trans
formation of the imported crank assembly. Accordingly, the crank assemblies are excepted from individual marking under 19 U.S.C. 1304(a)(3)(D) provided that the assemblies will reach the
ultimate purchaser in properly marked outer containers.
Sincerely,
John Durant, Director
Commercial Rulings Division