CLA-2 CO:R:C:M 954989 DWS
Ms. Sue S. Wilkerson
Cummins Engine Company, Inc.
Box 3005
Columbus, IN 47202-3005
RE: Revocation of HQ 951154; Cylinder Block Castings; Advanced
Beyond Cleaning; Stress Relieving; 8409.99.91
Dear Ms. Wilkerson:
This is in reference to HQ 951154, issued to you on June 26,
1992, involving the classification of cylinder block castings for
diesel engines under the Harmonized Tariff Schedule of the United
States (HTSUS).
In dealing with the classification of similar merchandise
imported by a different company, Customs has found that the
creation of castings for diesel engines may require different
operations than the creation of castings for other uses.
Therefore, HQ 951154 has been referred to this office for
reconsideration.
FACTS:
The merchandise consists of iron cylinder block castings for
use in the manufacture of diesel engines. Metal foundries produce
these castings in the following manner: pig iron, steel, and other
metals in small amounts, in the form of scrap, machining swarf, pit
cast, and in-house reserves, are reduced to molten iron in coke
fired cupolas and electric furnaces. The molten metal is poured
into mold cavities and allowed to harden. The castings are then
removed by a shakeout machine. These castings conform to a
material specification outlining chemical composition, mechanical
properties, microstructure, etc. It is evident that iron
predominates by weight over any other base metal constituent.
According to the information submitted, internal stresses are
reduced when the castings are left to cool very slowly in the mold
so that the thick and thin sections cool at approximately the same
rate. However, to maximize mold utilization and overall production
capacity, castings may be removed from the mold prematurely and
allowed to air cool. This causes residual stresses to develop
which make the castings unacceptable for use in diesel engines.
In order to relieve these stresses, the castings are placed in a
furnace at 400-650 degrees Fahrenheit (F). The temperature is
gradually increased to 1000-1150 degrees F, and the castings are
held at this temperature for one hour per inch of thickness based
upon the heaviest section of the casting. They are then control
cooled back to the original temperature at a rate not to exceed 250
degrees F per hour. After this heat treatment, the castings are
surface finished by some combination of chipping, grinding, and
sand blasting.
The subheadings under consideration are as follows:
8409.99.10: [p]arts suitable for use solely or principally
with the engines of heading 8407 or 8408: [o]ther:
[o]ther: [c]ast-iron parts, not advanced beyond
cleaning, and machined only for the removal of
fins, gates, sprues and risers or to permit
location in finishing machinery.
Goods classifiable under this provision receive duty free
treatment.
8409.99.91: [p]arts suitable for use solely or principally
with the engines of heading 8407 or 8408: [o]ther:
[f]or vehicles of subheading 8701.20, or heading
8702, 8703 or 8704.
The general, column one rate of duty of goods classifiable
under this provision is 3.7 percent ad valorem.
ISSUE:
Whether the stress relieving operation constitutes an
advancement beyond cleaning for the purposes of subheading
8409.99.10, HTSUS.
Whether the cylinder block castings are classifiable under
subheading 8409.99.10, HTSUS, as cast iron parts, not advanced
beyond cleaning, and machined only for the removal of fins, gates,
sprues, and risers, or under subheading 8409.99.91, HTSUS, as other
parts of for vehicles of subheading 8701.20, or heading 8702, 8703,
or 8704.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
In HQ 951154, the castings were held to be classifiable under
subheading 8409.99.91, HTSUS. It was stated that:
we conclude that stress relieving is not a required step in
the production of all merchantable gray cast iron castings,
but only those that have been prematurely removed from the
mold. From the record it appears that stress relieving is
not commercially regarded as an integral part of the casting
process. It is a process performed subsequently to improve
the quality of a casting.
In HQ 951154, it was stated that stress relieving is not
regarded as an integral part of the casting process. However, it
is now our understanding that, in the production of castings for
diesel engines, stress relieving may well be integral to the
process. Many foundries do not have the space to hold castings for
controlled slow cooling. Therefore, the only other option is the
stress relieving operation. In such foundries, this operation must
be performed on castings for diesel engines, because diesel engine
blocks operate at much higher levels of heat and pressure than do
gasoline engines. If the castings are not stress relieved, they
could crack or otherwise malfunction. Therefore, concerning the
subject castings for diesel engines, the stress relieving operation
is an integral part of the casting process.
Consequently, it is our position that the subject castings are
classifiable under subheading 8409.99.10, HTSUS.
HOLDING:
The cylinder block castings are classifiable under subheading
8409.99.10, HTSUS, as cast iron parts, not advanced beyond
cleaning, and machined only for the removal of fins, gates, sprues,
and risers.
HQ 951154 is revoked in full.
Sincerely,
John Durant, Director