CLA-2:CO:R:C:M 956210 JAS
District Director of Customs
Patrick V. McNamara Bldg.
477 Michigan Ave.
Detroit, MI 48266
RE: PRD 3801-94-100473; Circular Steel Shapes; Steel Circles
Cut From Sheet; Flat-Rolled Product, Heading 7208;
Automotive Torque Converter (Transmission) Covers, Other
Parts of Motor Vehicles, Subheading 8708.99.50; Fabricated
Components, Original Motor-Vehicle Equipment, Automotive
Products Trade Act (APTA); Blank, GRI 2(a)
Dear Sir:
This is our decision on Protest No. 3801-94-100473, filed on
behalf of Kasle Steel of Canada Ltd., against your decision in
classifying certain steel circles. The entries were liquidated
on October 22 and 29, 1993, and this protest timely filed on
January 20, 1994.
FACTS:
The merchandise is steel circles or blanks for the front
cover of an automobile torque converter or transmission. The
circles, each measuring 14.185 inches plus or minus 0.010 inch,
are die cut from 6-gauge hot rolled SAE grade 1015 steel sheet,
0.189-0.20 inch thick. There are four (4) raised square
extrusions called oil breakers or oil seal breakers, flaring to a
height of 0.02 inch at the outer edge, evenly spaced around the
circumference of each circle. After importation, the circles are
fed from a conveyor into a machine press which, according to
protestant, performs a number of pressing and stamping operations
which form the circles into a finished torque converter cover.
The post-importation processing is not further described. The
oil seal breakers function only to keep the circles from sticking
together and insure they are not double-fed into the machine
press which would jam the machine. The oil seal breakers have no
purpose relative to a finished torque converter cover. - 2 -
Protestant maintains that, as imported, the steel circles or
blanks qualify as fabricated components intended for use as
original motor-vehicle equipment. As such, they were entered
under an appropriate provision for parts and accessories of motor
vehicles which would qualify them for free entry under the
Automotive Products Trade Act of 1965, as amended (APTA). The
claim is that the blanks are physically recognizable as
automotive components in an unfinished state because to recut a
14-inch steel circle for any use other than as intended at
importation would not be commercially feasible.
It was determined that the blanks are not limited by their
shape to a particular use or uses, are not physically
recognizable as automotive components, and bear virtually no
resemblance to the part they will eventually become.
Accordingly, it was determined that, as imported, they qualify as
flat-rolled products of heading 7208, Harmonized Tariff Schedule
of the United States (HTSUS).
The provisions under consideration are as follows:
7208 Flat-rolled products of iron or nonalloy
steel, of a width of 600 mm or more, hot-
rolled, not clad, plated or coated:
7208.90.00 Other...5 percent
* * * * *
8708 Parts and accessories of the motor vehicles
of headings 8701 to 8705:
Other parts and accessories:
8708.99.50 Other...3.1 percent but Free under APTA
ISSUE:
Whether the steel circles, as imported, are blanks under GRI
2(a), HTSUS, and therefore unfinished articles for tariff
purposes.
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 2(a),
HTSUS, states in part that any reference in a heading to an - 3 -
article shall be taken to include a reference to that article
incomplete or unfinished, provided that, as entered,
the incomplete or unfinished article has the essential character
of the complete or finished article.
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, 54 Fed. Reg. 35127, 35128 (Aug. 23,
1989).
Flat-rolled products of heading 7208 are rolled products of
solid rectangular (other than square) cross section, which are
not semifinished products for tariff purposes. This heading
includes flat-rolled products of a shape other than rectangular
or square, of any size, provided they do not assume the character
of articles of other headings. Therefore, circular articles are encompassed by heading 7208, if
otherwise qualified.
The provisions of Rule 2(a) apply to the imported
merchandise if they qualify as blanks. The ENs to GRI 2(a)
provide specific guidance on the application of the rule to
articles referred to as "blanks." EN (II) to the GRI states on
p. 2:
(II) The provisions of this rule also apply to
blanks unless these are specified in a
particular heading. The term "blank" means
an article, not ready for direct use,
having the approximate shape or outline of
the finished article or part, and which can
only be used, other than in exceptional
cases, for completion into the finished
article or part.
Semi-manufactures not yet having the
essential shape of the finished articles
(such as is generally the case with bars,
discs, tubes, etc.) are not regarded as
"blanks."
The ENs address two criteria for articles which are "blanks"
for GRI 2(a) purposes: approximate shape or outline and sole use
for completion into the finished article or part. - 4 -
The protestant contends that the precise external
specifications of the wheel blanks is an indication that they
will be used principally, if not solely, for completion into
automotive torque converter covers. However, as imported, these
articles are merely shapes that may be used to make a variety of
articles for which SAE grade 1015 steel is suitable. It is only
after each steel circle is subjected to a series of post-
importation processing operations, which protestant does not
describe, that the shape or outline of the finished torque
converter cover can be seen.
As imported, therefore, these steel shapes, circles or discs
have neither the form nor the shape nor any visually apparent
characteristic of the specific part or component they will be
when finished. These discs are semi-manufactures the equivalent
of bars, discs, tubes, etc., which the ENs indicate are not
"blanks" for tariff purposes.
HOLDING:
The circular steel shapes in issue are not blanks for tariff
purposes and, therefore, not unfinished articles of heading 8708.
Under the authority of GRI 1, these articles are provided
for in heading 7208. They are classifiable in subheading
7208.90.00, HTSUS.
The protest should be DENIED. In accordance with Section
3A(11)(b) of Customs Directive 099 3550-065, dated August 4,
1993, Subject: Revised Protest Directive, you should mail this
decision, together with the Customs Form 19, to the protestant no
later than 60 days from the date of this letter. Any
reliquidation of the entry or entries in accordance with the
decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision the Office of
Regulations and Rulings will take steps to make the decision
available to Customs personnel via the Customs Rulings Module in
ACS and to the public via the Diskette Subscription Service, the
Freedom of Information Act and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division