CLA-2:CO:R:C:M 952717 JAS
District Director of Customs
423 Canal Street
New Orleans, LA 70130
RE: Progressive Die Unit for the Manufacture of Auto Body Parts;
Unit Containing Metal Cutting Die and Metal Forming Die; Dies
for Pressing, Stamping or Punching; Suitability for Cutting
Metal; Heading 8207; PRD 2002-92-100126
Dear Sir:
This is our decision on Application for Further Review of Protest No. 2002-92-100126, dated January 7, 1992, filed on behalf of Yamakawa Mfg. Corp. of America against your action in liquidating an entry of metal-working dies from Japan. Numerous blueprints and drawings were submitted which we are returning with this decision.
FACTS:
The merchandise in issue is a progressive die unit that consists of a series of dies in a holder called a shoe or plate. This die unit is used in a machine that makes automobile parts from sheet metal. It is a time-saving device that enables multiple operations to be performed on the part at one station.
Each die in the unit performs an independent metal-working operation, either cutting or forming. However, it is noted on the Customs Form 6445 that some of the dies both form and trim (cut) metal. Individual dies that wear out are replaceable but this requires considerable retooling of the shoe.
Blueprints purport to contain codes showing which dies in the unit have metal cutting capability and which dies have only metal forming capability. Also submitted is a statement from an executive of the protesting company certifying the contents of the blueprints. There is no literature on this merchandise and no photographs, or other evidence in the file from which we can independently determine the capability of each die. Your office - 2 -
notes that individual dies in the unit are separately invoiced, with each having an individual blueprint.
Certain check gauges entered in the same shipment were
liquidated at the entered rate. This merchandise, therefore, is
not a part of this protest.
The progressive die unit was liquidated under the provision for tools for pressing, stamping or punching, suitable for cutting metal, in subheading 8207.30.30, Harmonized Tariff Schedule of the United States (HTSUS).
Protestant does not contest the subheading 8207.30.30 classification for the metal-cutting dies in the progressive die unit, but proposes that those dies in the unit that only form metal be classified in subheading 8207.30.60, HTSUS.
ISSUE:
Whether the progressive die unit is a composite good that is classifiable according to its essential character.
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided the headings or notes do not require otherwise, according to GRIs 2 through 6. GRI 6 states in part that for legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, by appropriate substitution of terms, to GRIs 1 through 5, on the understanding that only subheadings at the same level are comparable. For the purposes of Rule 6, the relative section, chapter and subchapter notes also apply, unless the context requires otherwise.
Subheading 8207.30.30 provides for pressing, stamping or punching tools suitable for cutting metal, while subheading 8207.30.60 provides for such tools that are not suitable for cutting metal. The progressive die unit is prima facie classifiable in both provisions; however, each provision describes part only of the components in the progressive die unit.
Under the authority of GRI 3(b), applied at the subheading level through GRI 6, the progressive die unit is a composite good made up of different components. It is to be classified as if consisting only of that component that gives the unit its - 3 -
essential character. The factor or factors that determine essential character will vary with the goods. In merchandise consisting of multiple components the nature of each component and its role or significance in relation to the use of the goods are factors that are often considered. Disregarding the holder or shoe for purposes of this analysis, it is apparent that the forming dies create the desired shape or contour to the metal and establish the identity of the part. This is the primary purpose served by the progressive die unit. In our opinion, the cutting dies perform functions that are in the nature of start-up or finishing operations, and are clearly subordinate to the forming operations. We conclude that the forming dies impart the essential character to the progressive die unit.
HOLDING:
Under the authority of GRI 3(b), applied at the subheading level by GRI 6, the progressive die unit is classifiable under the provision for tools for pressing, stamping or punching, not suitable for cutting metal, in subheading 8207.30.60, HTSUS.
Because the rate under this provision is less than the liquidated rate, the protest is allowed. A copy of this decision should be attached to the Customs Form 19 and mailed to protestant, through its representative, as part of the notice of action on the protest.
Sincerely,
John Durant, Director
Commercial Rulings Division