CON-9-04 221488 GG
Shelley A. Johnson
Fuller Company
2040 Avenue C, LVIP
P.O. Box 2040
Lehigh Valley, PA 18001-2040
RE: Temporary importation under bond; subheading 9813.00.05,
HTS; processing operation; installation of roller bearings into
crushing machines
Dear Ms. Johnson:
This is in response to your company's letter, dated May 25,
1989, in which the company requests a ruling on whether certain
cylindrical and spherical roller bearings may be imported into
the United States temporarily under bond. Our decision follows.
FACTS:
The Fuller Company, which is a manufacturer of heavy
industrial equipment used primarily in the mining and cement
industries, imports several kinds of roller bearings for
installation into two of its major products, the Fuller Loesche
Mill and the Fuller HRC Roll Crusher. Both of these machines
serve to reduce the size of processed material by a crushing or
grinding action, which occurs when the processed material passes
under or through rotating surfaces exerting great pressures.
The bearings are installed into the various parts of the
Loesche Mill or HRC Roll Crusher by several methods. In some
cases, the component parts of the bearings - inner ring and outer
ring with roller cage assembly and roller sleeve - are heated and
then are separately fitted, in uninterrupted sequence, into the
designated part. Some assembled bearings are heated with hot oil
prior to their installation to provide an "interference fit" with
the part; others are inserted into retaining rings that are
attached to the part with screws, which are then turned to
produce an interference fit. Sometimes the bearings are secured
with seals and retainer plates. The parts into which the
imported bearings have been installed are then either shipped
separately, or are incorporated into larger components of the
Loesche Mill or HRC Roll Crusher before being exported.
ISSUE:
Whether the installation of imported roller bearings into
various parts of the Loesche Mill or HRC Roll Crusher is a
process which would allow the roller bearings to be imported
temporarily, under bond, under subheading 9813.00.05 of the
Harmonized Tariff Schedule of the United States?
LAW AND ANALYSIS:
All merchandise imported into the United States is subject
to duty unless specifically exempted therefrom by statute.
Subheading 9813.00.05 of the Harmonized Tariff Schedule of the
United States (HTS) provides for the temporary duty-free
importation under bond of articles to be repaired, altered or
processed, including processes which result in articles
manufactured or produced in the United States.
In earlier rulings, Customs has determined that the
incorporation of an imported article into a domestic or foreign
article, is a processing operation which falls under subheading
9813.00.05, HTS (formerly item 864.05, Tariff Schedules of the
United States). See, e.g., HRL 206598, August 6, 1976 (imported
optically worked lens incorporated into pattern generator); HRL
202996, July 7, 1975 (black star sapphire imported for the
purpose of being set into class ring); HRL 201130, July 23, 1973
(imported imitation glass stones incorporated into collet chain);
and HRL 209332, October 23, 1978 and HRL 209773, December 5,
1978, (airplane parts imported for installation on or into
aircraft). Accordingly, the roller bearings are "processed"
within the meaning of subheading 9813.00.05, HTS, when they are
installed, by the methods outlined above, into the various parts
of the Fuller Loesche Mill and the Fuller HRC Roll Crusher. Upon
compliance with the other provisions of subheading 9813.00.05,
HTS and all other applicable laws and regulations, the roller
bearings may be imported temporarily, under bond, under
subheading 9813.00.05, HTS.
HOLDING:
Imported roller bearings are processed when they are
incorporated into various parts of machines, and accordingly may
be imported temporarily, under bond, under the provisions of
subheading 9813.00.05, HTS.
Sincerely,
John Durant
Director, Commercial