CLA-2 CO:R:C:M 956285 DWS
District Director
U.S. Customs Service
605 W. Fourth Avenue, Room 205
Anchorage, AK 99501
RE: Protest 3126-92-100019; Spare Parts of Toothed Shaft
Coupling; Nuts and Bolts; O-Rings; Complete and Unassembled;
GRI 2(a); Explanatory Notes 2(a)(V) and (VII); HQs 088891,
951713, 953860, and 950886; Section XVI, Note 1(g);
Section XV, Note 2(a); 8483.90.50; 8483.60.80
Dear District Director:
The following is our decision regarding Protest 3126-92-
100019 concerning your action in classifying and assessing duty
on spare parts for a MAAG toothed shaft coupling under the
Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The merchandise consists of spare parts for a MAAG toothed
shaft coupling (model type ZUD-7). The parts are comprised of a
coupling, fasteners (nuts and bolts), and plastic O-ring gaskets.
A MAAG toothed shaft coupling is a mechanical assembly which
allows a drive shaft and a driven shaft to be joined together in
such a way as to provide for the direct transfer of rotational
torque, while allowing for a certain amount of flexibility of the
two shafts. Each coupling consists of an inner cup, into which a
drive shaft is pressed. This cup, which has a gear-toothed outer
ring on one end, is inserted into an outer sleeve which also has
matching gear teeth on its inner surface. The gears mesh with
one another, allowing for the direct transfer of rotational
force. The gears also allow for a limited amount of slippage
between them, thereby providing the required flexibility. The
coupling uses the O-rings as a "cushion" between the parts. In a
full assembly, two couplings are used, one on either end of a
connecting metal spacer. The couplings are bolted to the spacer
with the specially balanced fasteners.
The merchandise was entered under subheading 8483.90.50,
HTSUS, as parts of gearing. The entry was liquidated on
September 11, 1992, under subheading 8483.60.80, HTSUS, as other
shaft couplings. The protest was timely filed on December 10,
1992.
The subheadings under consideration are as follows:
8483.90.50: [p]arts of gearing, gear boxes and other speed
changers.
The general, column one rate of duty for goods classifiable
under this provision is 2.5 percent ad valorem.
8483.60.80: [c]lutches and shaft couplings (including
universal joints): [o]ther.
The general, column one rate of duty for goods classifiable
under this provision is 5.7 percent ad valorem.
8483.90.80: . . . clutches and shaft couplings (including
universal joints); parts thereof: [p]arts:
[o]ther: [o]ther.
The general, column one rate of duty for goods classifiable
under this provision is 5.7 percent ad valorem.
7318.15.20: [o]ther screws and bolts, whether or not with
their nuts or washers: [b]olts and bolts and
their nuts or washers entered or exported in
the same shipment.
The general, column one rate of duty for goods classifiable
under this provision is 0.7 percent ad valorem.
3926.90.45: [o]ther articles of plastics and articles of
other materials of headings 3901 to 3914:
[o]ther: [g]askets, washers and other seals.
The general, column one rate of duty for goods classifiable
under this provision is 3.5 percent ad valorem.
ISSUES:
Whether, for classification purposes, the subject spare
parts are to be considered complete and unassembled shaft
couplings, classifiable under subheading 8483.60.80, HTSUS.
If not, whether the spare parts are classifiable under
subheading 8483.90.50, HTSUS, as parts of gearing.
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.
GRI 2(a) states that:
[a]ny reference in a heading to an 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. It shall also include a
reference to that article complete or finished (or falling
to be classified as complete or finished by virtue of this
rule), entered unassembled or disassembled.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive or
legally binding, provide a commentary on the scope of each
heading of the HTSUS, and are generally indicative of the proper
interpretation of these headings. See T.D. 89-80, 54 Fed. Reg.
35127, 35128 (August 23, 1989).
Explanatory Note 2(a)(V) (p. 2) states that:
[t]he second part of Rule 2(a) provides that complete or
finished articles presented unassembled or disassembled are
to be classified in the same heading as the assembled
article. When goods are so presented, it is usually for
reasons such as requirements or convenience of packing,
handling or transport.
In part, Explanatory Note 2(a)(VII) (p. 2) states that:
[f]or the purposes of this Rule, "articles presented
unassembled or disassembled" means articles the components
of which are to be assembled either by means of simple
fixing devices (screws, nuts, bolts, etc.) or by riveting or
welding, for example, provided only simple assembly
operations are involved.
Although the subject components, when assembled together,
may form a complete MAAG toothed shaft coupling, it is our
position that they were not shipped unassembled for convenience
of packing, handling, or transport, but as spare parts for inventory purposes. In such instances, the components cannot be
classifiable as a complete and unassembled toothed shaft
coupling, but are to be classifiable under the HTSUS provisions
which describe the individual components. See HQ 088891, dated
June 21, 1991; HQ 953860, dated June 23, 1993; and HQ 951713,
dated August 4, 1992.
The subject components are not classifiable under subheading
8483.90.50, HTSUS, as parts of gearing. The gear teeth on the
coupling are present to provide the coupling with needed
flexibility, not to change direction or ratio of force. Because
the purpose of the coupling is as a part of a shaft coupling, it
is our position that it is classifiable specifically under
subheading 8483.90.80, HTSUS.
Section XVI, note 1(g), HTSUS, states that:
[t]his section does not cover:
(a) - (f) xxx
(g) Parts of general use, as defined in note 2 to section
XV, of base metal (section XV), or similar goods of
plastics (chapter 39).
Section XV, note 2(a), HTSUS, states that:
[t]hroughout the tariff schedule, the expression "parts of
general use" means:
(a) Articles of heading 7307, 7312, 7315, 7317 or 7318 and
similar articles of other base metals.
The subject fasteners are specifically classifiable under
subheading 7318.15.20, HTSUS, as other bolts with their nuts.
Because they are parts of general use under section XV, note
2(a), HTSUS, under section XVI, note 1(g), HTSUS, they are
precluded from classification under heading 8483, HTSUS.
With regard to the plastic O-rings, in HQ 950886, dated
April 3, 1992, we held that plastic O-rings were similar to the
washers of heading 7318, HTSUS, and were parts of general use
classifiable under subheading 3926.90.45, HTSUS. Therefore, it
is our position that the O-rings are classifiable under
subheading 3926.90.45, HTSUS, as other plastic seals, and under
section XVI, note 1(g), HTSUS, are precluded from classification
under heading 8483, HTSUS.
HOLDING:
By authority of GRI 2(a), the subject components do not
constitute a complete and unassembled toothed shaft coupling, and
they must be classifiable under the specific HTSUS provisions
which individually describe the components.
The coupling is classifiable under subheading 8483.90.80,
HTSUS, as a part of a shaft coupling.
The fasteners are classifiable under subheading 7318.15.20,
HTSUS, as other bolts with their nuts.
The plastic O-rings are classifiable under subheading
3926.90.45, HTSUS, as other plastic seals.
With regard to the coupling, because the rate of duty under
the classification indicated above is the same as the liquidated
rate, you are instructed to DENY the protest.
With regard to the fasteners, because reclassification of
the merchandise as indicated above will result in a lower rate of
duty than claimed, you are instructed to GRANT the protest.
With regard to the plastic O-rings, you are instructed to
DENY the protest, except to the extent reclassification of the
merchandise as indicated above results in partial allowance.
In accordance with Section 3A(11)(b) of Customs Directive
099 3550-065, dated August 4, 1993, Subject: Revised Protest
Directive, this decision, together with the Customs Form 19,
should be mailed by your office to the protestant no later than
60 days from the date of this letter. Any reliquidation of the
entry in accordance with the decision must be accomplished prior
to mailing of 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 the public via the Diskette
Subscription Service, Lexis, Freedom of Information Act, and
other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division