CLA-2:CO:R:C:M 956790 JAS
Mr. Frank M. Murphy
Carr Consulting Group
P.O. Box 398
Farmington, MI 48332-0398
RE: Automotive Axle Housings Made From Hot Rolled Steel Tubing;
Axle Housings for Rear Drive Axle Assemblies; Pipes and
Tubes of Iron or Steel, Heading 7306; Cut-to-Length and
Processed Tubes; Parts and Accessories of Motor Vehicles,
Heading 8708; Incomplete or Unfinished Articles, Essential
Character, Blanks, GRI 2(a)
Dear Mr. Murphy:
In a letter dated July 25, 1994, on behalf of Standard Tube
Canada, Inc., you inquire as to the tariff classification of
fabricated steel tubes from Canada you refer to as unfinished
automotive axle housings. Blueprints and a lengthwise tube
segment were submitted.
FACTS:
The articles in issue are said to be unfinished automotive
components which, after importation, will be completed and
incorporated into the rear drive axle assembly of the General
Motors M-van vehicle series.
The merchandise is cut-to-length and processed steel tubes
which are fabricated in a series of operations that begin with
wide coils of hot rolled SAE 1026 flash controlled welded steel
conforming to ASTM designation A 513 for electric resistance
welded carbon steel mechanical tubing. These coils are slit
lengthwise into narrower widths, then electro-fused and rolled
into 280-inch lengths of tubing. After removing fusion residue
from the inside of the tubing the lengths are annealed to soften
them for further fabricating, then straightened and lubricated.
The tubing is then lathe cut into 17-inch and 19.6-inch lengths.
One length of tubing will become the right axle housing and the
other the left axle housing. The tubes will then be rolled on a
mandrel inside and outside to create uneven wall thicknesses, the - 2 -
thicker areas being necessary to accommodate brackets. The
rolled tubes will then be trued back to their original finished
lengths, then tapered to accept a mounted wheel bearing on one
end and an axle carrier on the other end. Finally, one end of
each tube is tapered to make it smaller than the other end. This
last step brings the tubes to their condition as imported.
After importation, brackets will be welded to the thicker
areas of each tube for mounting shock absorbers, springs, jounce
pads and a parking brake cable. In addition, each tube will be
machined on its thicker end to receive the wheel bearing. This
completes the tubes into left and right axle housings, one of
each which will slip over a rear drive axle to complete a drive
axle assembly.
You maintain that upon importation the tubes are incomplete
or unfinished automotive components that are identifiable as and
dedicated to becoming parts of motor vehicles of HTS heading
8703. You claim that under General Rule of Interpretation (GRI)
2(a), Harmonized Tariff Schedule of the United States (HTSUS),
the tubes have the essential character of axle housings which are
parts and accessories of heading 8708.
The provisions under consideration are as follows:
7306 Other tubes, pipes and hollow profiles (for
example, open seamed or welded, riveted or
similarly closed), of iron or steel:
7306.50 Other, welded, of circular cross section, of
other alloy steel:
7306.50.10 Having a wall thickness of less than
1.65 mm...7.5 percent
Having a wall thickness of 1.65 mm or more:
7306.50.50 Other...4.9 percent
* * * *
8708 Parts and accessories of the motor vehicles
of headings 8701 to 8705:
Other parts and accessories:
8708.99 Other:
Other:
8708.99.80 Other...3.1 percent
- 3 -
ISSUE:
Whether the steel tubes, cut to length and processed as
indicated, have the essential character of automotive parts of
heading 8708.
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.
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).
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 establish 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 -
Applying these criteria to the merchandise in issue, it is
apparent that the imported axle housing tubes have the
approximate shape or outline, both in terms of length, outside
diameter and varying interior wall thicknesses, of finished axle
housings. They require only the welded brackets and slight
additional machining on one end to receive the wheel bearing.
Their dimensions upon importation, particularly the varying
interior wall thicknesses, lead us to conclude the axle housing
tubes will be completed only into automotive axle housings. For
these reasons, the axle housing tubes qualify as blanks for
tariff purposes, and have the essential character of parts of
heading 8708. These same dimensions make it apparent that the
finished axle housings will be principally if not solely used
with motor vehicles of heading 8703.
HOLDING:
Under the authority of GRI 2(a), the axle housing tubes in
issue have the essential character of complete or finished
automotive axle housings. They are considered unfinished parts
and accessories of heading 8708 and are are classifiable in
subheading 8708.99.80, HTSUS.
Sincerely,
John Durant, Director
Commercial Rulings Division