CLA-2 CO:R:C:M 089939 MBR
Mr. Bruce E. Himmelreich
Cooper Industries
P.O. Box 4446
Houston, Texas 77210
RE: Ball Valve Subassemblies; Unfinished; Valve; Structure; Hand
Operated; Principal Use; GRI 2(a); GRI 3(c); Cooper Industries
Dear Mr. Himmelreich:
This is in reply to your letter of July 17, 1991, on behalf
of Cooper Industries, requesting classification of "Ball Valve
Subassemblies," imported from France, Scotland, Mexico and Italy,
under the Harmonized Tariff Schedule of the United States Annotated
(HTSUSA).
FACTS:
The Oil Tool Division of Cooper Industries ("Cooper") is in
the business of manufacturing and marketing a variety of valve
products, primarily for use in the oil and gas industry. Cooper
imports a series of ball valve subassemblies. The subassemblies
are used in the manufacture of ball valves in sizes from 8" in
diameter to 42" in diameter. These ball valves are used in
pipelines for the transmission of oil, gas, and other products.
They act to control the flow of material within the pipeline. The
valve functions by means of a hollowed out ball mechanism in its
center. When the hollow core of the ball is aligned with the pipe,
material is able to pass through the valve. However, when the ball
is rotated within the valve so that its solid surface faces the
pipe connection, the pipe is sealed.
Cooper imports the subassemblies in various stages of
completion. The submitted literature depicts the imported
subassemblies as consisting of a forged body and ball. After
importation, Cooper undertakes the following operations: milling,
grinding, machining, coating, testing, welding, and assembly
operations.
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At the time of importation, it is not known what type of
actuator will be applied. The valves are placed in storage
awaiting a customer order, which will specify the type of operator
to be utilized.
ISSUE:
What is the classification of ball valve subassemblies, under
the Harmonized Tariff Schedule of the United States Annotated
(HTSUSA)?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
You state that: "[o]n 20" valves adapted with a hand operator,
it would take 190 turns and approximately 20 minutes of physical
effort to accomplish an opening or closing of the valve. A 30"
valve would require 297 turns or 30 minutes of physical exertion.
For this reason, hand operation is impractical for most foreseeable
uses of a large diameter ball valve." Further, you state that:
"[b]oth the sales data and the inherent nature of the product
indicate that the principal use of the valve subassemblies 20" and
larger is and must continue to be as power operated products." We
agree that, in light of the sales data and difficulty of hand
operation of these 20" and larger ball valves, that they are
principally actuated by other means than hand operation. GRI 2(a)
states, in pertinent part:
Any reference in a heading to an article shall be taken to
include a reference to that article incomplete or unfinished,
provided that, as presented, the incomplete or unfinished
article has the essential character of the complete or
finished article....
At importation, the 20" and larger unfinished ball valves have
the essential character of finished, principally power actuated,
ball valves, and as such are classifiable under subheading
8481.80.90, HTSUSA, which provides for: "[t]aps, cocks, valves and
similar appliances...: [o]ther appliances: [o]ther."
In contrast, however, at importation there is no reliable
indication regarding whether the unfinished 2" through 18" ball
valves are principally actuated by hand, or by other means.
Therefore, they are prima facie classifiable under the following
subheadings:
-3-
8481.80.30 Taps, cocks, valves and similar appliances...:
Other appliances: Hand operated: Of iron or
steel.
* * * * * * * * * * * * * *
8481.80.90 Taps, cocks, valves and similar appliances...:
Other appliances: Other
In their condition as imported, the 2" through 18" ball valves
are not "finished" "hand operated" valves since they lack the means
of actuation and are not principally operated by one method.
Again, GRI 2(a) provides guidance here. It states, in pertinent
part:
Any reference in a heading to an article shall be taken to
include a reference to that article incomplete or unfinished,
provided that, as presented, the incomplete or unfinished
article has the essential character of the complete or
finished article....
However, as presented, the 2" through 18" ball valves do not
have the essential character of "hand operated" valves. Upon
importation, there is no indication as to the method of operation,
nor is there any reliable data as to the principal function. In
fact, smaller valves are frequently power actuated in process
control systems, and for emergency situations.
Therefore, in the absence of consistent, reliable information
as to the method of operation, the 2" through 18" unfinished ball
valves are classifiable under subheading 8481.80.90, HTSUSA, which
provides for: "[t]aps, cocks, valves and similar appliances...:
[o]ther appliances: [o]ther."
If, however, it becomes clear that the 2" through 18" ball
valves are principally "hand operated" or dedicated to hand
operation, they would be properly classifiable under subheading
8481.80.30, HTSUSA, which provides for hand operated valves of
steel. See HQ 950064 for a similar holding regarding similar
merchandise.
HOLDING:
The 20" and larger unfinished ball valves have the essential
character of finished, principally power actuated, ball valves, and
as such are classifiable under subheading 8481.80.90, HTSUSA, which
provides for: "[t]aps, cocks, valves and similar appliances...:
[o]ther appliances: [o]ther." The rate of duty is 3.7 percent ad
valorem.
-4-
The 2" through 18" unfinished ball valves are classifiable
under subheading 8481.80.90, HTSUSA, which provides for: "[t]aps,
cocks, valves and similar appliances...: [o]ther appliances:
[o]ther." The rate of duty is 3.7 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division