HQ 955513
MARCH 23 1994
CLA-2:CO:R:C:M 955513 JAS
Mr. Ronald Jacobsen
Yusen Air & Sea Service (U.S.A.), Inc.
P.O. Box 66280
Chicago, ILL 60666
RE: Automobile Front End, Used Automobile Parts; Ferrous Waste
and Scrap, Heading 7204, Section XV, Note 6(a); Heading
8407, Heading 8408; Composite Good, Essential Character,
GRI 3(b)
Dear Sir:
In your transmittal of November 23, 1993, on behalf of
Toyota Isusho America, Inc., you inquire as to the tariff
classification of complete front ends of used front wheel drive
automobiles from Japan. Photographs were submitted.
FACTS:
Used or rear end-damaged passenger vehicles are cut at the
windshield down through the floorboard. Each front end to be
imported consists of the entire front portion from the windshield
posts forward, and includes the engine, transaxle, steering
components, wheels, tires, driveshafts, headlights, turn signals,
bumpers, grill, radiator, shocks and struts, ignition, starter,
alternator, air conditioner, wiring harness, dashboard and
instrumentation,, plus the sheet metal parts (i.e., hood and
fenders) that constitute the front of the vehicle. All operating
parts are said to be functional at the time of importation.
Each front end is valued at between $500 to $600 with the
engine, being the most significant component, valued at
approximately 25 to 30 percent of the value. The front ends will
be broken down after importation and their component parts sold
as replacements. - 2 -
The provisions under consideration are as follows:
7204 Ferrous waste and scrap:
Waste and scrap of alloy steel:
7204.21.00 Of stainless steel...Free
7204.29.00 Other...Free
* * * * *
8407 Spark-ignition reciprocating or rotary
internal combustion piston engines:
[o]f a kind used for the propulsion of
vehicles of chapter 87:
8407.34 Of a cylinder capacity exceeding 1,000 cc:
8407.34.15 To be installed in vehicles of subheading
8701.20, or heading 8702, 8703 or 8704
...3.1 percent
* * * * *
8408 Compression-ignition internal combustion
piston engines (diesel or semi-diesel
engines):
Engines of a kind used for the propulsion
of chapter 87:
8408.20.20 To be installed in vehicles of subheading
8701.20, or heading 8702, 8703 or 8704
...3.7 percent
ISSUE:
Whether the front ends of used passenger automobiles are
waste and scrap; whether they are composite articles classifiable
according to their 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. - 3 -
GRI 3 governs goods that are prima facie classifiable under
two or more headings. In accordance with GRI 3(b), composite
goods made up of different components are to be classified as if
consisting only of that component which gives them their
essential character.
The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the Customs Cooperation
Council's official interpretation of the Harmonized System.
While not legally binding on the contracting parties, and
therefore not dispositive, the ENs provide a commentary on the
scope of each heading of the Harmonized System and are thus
useful in ascertaining the classification of merchandise under
the System. Customs believes the notes should always be
consulted. See T.D. 89-80.
For purposes of heading 7204, the term Waste and scrap is
defined as metal waste and scrap from the mechanical working of
metals, and metal goods definitely not usable as such because of
breakage, cutting-up, wear or other reasons. Section XV, Note
6(a), HTSUS. Relevant ENs at p. 987 and 988 state that the goods
of heading 7208 include iron or steel waste or scrap prepared by
fragmentation (shredding) of motor vehicle bodies and other light
scrap, followed by separation (which may be magnetic) with a view
to obtaining a high density product that is fairly clean. Waste
and scrap is generally used for the recovery of metal by
remelting or for the manufacture of chemicals. The heading
excludes articles which, with or without repair or renovation,
can be reused for their former purposes or can be adapted for
other uses. Not only do the front ends consist of rubber,
plastic and glass components, in addition to their metallic
components, but they will be broken down and their components
sold as replacement parts. They do not qualify as waste and
scrap for purposes of heading 7204.
The used front ends in question are clearly composite goods
made up of different components, each of which is prima facie
classifiable in a different heading. Under GRI 3(b), the front
ends are to be classified according to the component that imparts
essential character. The factor or factors which determine
essential character will vary according to the goods. The nature
of a component, its weight or value, and its role in relation to
the use of the goods, are factors that Customs has used in
similar cases. Here, the engine is the component that is most
independently functional and which provides the means of
propulsion for a completed vehicle. It also represents the
largest portion of the value of each front end. For this reason,
we conclude that the engine is the component that imparts the
essential character to each front end. - 4 -
HOLDING:
Under the authority of GRI 3(b), the used front ends in
issue are provided for as spark-ignition internal combustion
piston engines in heading 8407, or as compression-ignition
internal combustion piston engines in heading 8408. They are
classifiable in subheading 8407.34.15, HTSUS, or in subheading
8408.20.20, HTSUS, as appropriate.
Sincerely,
John Durant, Director
Commercial Rulings Division