CLA-2 CO:R:C:M 957085 KCC
William J. Phelan, Esq.
Phelan & Mitri
One Atlantic Street
Stamford, Connecticut 06901
RE: Aircraft Engine Disk Forgings; GRI 2(a); incomplete or
unfinished; essential character; EN 84.11; EN Rule 2(a)(II)
and EN Rule 3(b); blanks
Dear Mr. Phelan:
This is in regards to your letter dated September 9, 1994, to
the Regional Commissioner, New York, on behalf of United
Technologies Corporation, Pratt & Whitney Division, concerning the
tariff classification of aircraft engine disk forgings under the
Harmonized Tariff Schedule of the United States (HTSUS). Your
letter and attachments, as well as a facsimile to the concerned
National Import Specialist, dated September 19, 1994, were
forwarded to this office for a response.
FACTS:
This inquiry concerns the tariff classification of aircraft
engine disk forgings ("engine disk forgings") which will be
manufactured in a proposed Foreign Trade Zone (FTZ) in Columbus,
Georgia. Pratt & Whitney intends to file for FTZ status for this
facility. If the FTZ application is approved, Pratt & Whitney will
elect non-privileged foreign status for imported titanium into the
FTZ, manufacture engine disk forgings from the titanium and make
entry into the U.S. by delivering the engine disk forgings to its
Southington, Connecticut, plant for completion. The completed
product manufactured in the Southington plant will be an aircraft
engine disk designed to carry the airfoils (compressor and turbine
blades) that control the airflow through a jet engine.
The imported titanium which will enter the FTZ will be
titanium alloy ingot or billet which typically consists of
approximately 90% titanium, 6% aluminum and 4% vanadium. The
engine disk forgings will be produced as follows:
1.) a titanium ingot or billet is "gatorized" (super-heated and
pressed) into the shape of a thick pancake-like disk;
2.) the pancake-like disk is "gatorized" (super-heated and
pressed) into roughly the final forging shape, which resembles
either a disk with a center extruded hub or a flat, donut-
shaped disk;
3.) the forged shape is heat-treated according to specifications
and machined all over to produce a "sonic" disk configuration;
and
4.) this machined disk forging is inspected for defects and then
shipped to the Southington plant.
At the Southington plant the engine disk forging will be
manufactured into an aircraft engine disk by finishing processes
which consist of turning, milling, grinding, broaching, boring,
gear-shaping, cleaning and surface treatment. The majority of the
finishing processes involve removing extraneous material by cutting
with a harder material, i.e., turning produces cylindrical shapes;
milling produces non-cylindrical shapes necessary for controlling
cooling air and for the attachment of the disks to other parts;
broaching creates high precision slots on the periphery of the
disks for the attachment of airfoils; boring creates holes for the
disks' attachment to other rotating parts; and gear-shaping
produces simple precision slots for fixing the rotary alignment of
one part to that of another. Other than these finishing processes,
no other primary processing occurs, i.e., no additional forging
occurs in the Southington plant.
ISSUE:
Whether the engine disk forgings are classified as unfinished
aircraft engine disks pursuant to GRI 2(a), HTSUS?
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is governed
by the General Rules of Interpretation (GRI's). GRI 1, HTSUS,
states, in part, that "for legal purposes, classification shall be
determined according to terms of the headings and any relative
section or chapter notes...." GRI 2(a), HTSUS, states that:
Any reference in a heading to an article shall be taken to
include a reference to that article incomplete or unfinished,
provided that, as presented, the incomplete or unfinished
article has the essential character of the complete or
finished article....
The subheading at issue is as follows:
8411.91.90 Turbojets, turbopropellers and other gas turbines,
and parts thereof...Parts...Of turbojets or
turbopropellers...Other....
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes (ENs)
may be utilized. The ENs, although not dispositive, provide a
commentary on the scope of each heading of the HTSUS and are
generally indicative of the proper interpretation of the HTSUS.
See, T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). EN
84.11 (pg. 115), states that:
Subject to the general provisions regarding the classification
of parts (see the General Explanatory Note to Section XVI),
parts of the engines and motors of this heading are also
classified here (e.g., gas turbine rotors, combustion chambers
and vents for jet engines, parts of turbo-jet engines (stator
rings, with or without blades, rotor discs or wheels, with or
without fins, blades and fins), fuel feed regulators, fuel
nozzles) (emphasis in original).
Engine disks are classifiable under subheading 8411.91.90,
HTSUS. If the engine disk forgings are determined to be incomplete
or unfinished engine disks pursuant to GRI 2(a), HTSUS, they will
be classified under subheading 8411.91.90, HTSUS. Therefore, we
must determine whether the engine disk forgings have the essential
character of the complete or finished engine disks.
In general, essential character has been construed to mean
the attribute which strongly marks or serves to distinguish what
an article is; that which is indispensable to the structure, core
or condition of the article. In addition, EN Rule 3(b) (pg. 4),
provides further factors which help determine the essential
character of goods. Factors such as bulk, quantity, weight or
value, or the role of a constituent material in relation to the
use of the goods are to be utilized, though the importance of
certain factors will vary between different kinds of goods.
Moreover, EN Rule 2(a)(Incomplete or unfinished articles)(pg.
2), states:
(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".
Based on the information presented, we are of the opinion that
the aircraft engine disk forgings have the essential character of
the finished aircraft engine disks. The engine disk forgings
specifications concerning chemical composition, shape and
dimensions serve to distinguish the article as an engine disk. The
submitted information indicates that the engine disk forgings which
are delivered to Southington cannot be used for any purpose other
than to manufacture engine disks. Additionally, the engine disk
forgings have the approximate shape of the final engine disk. The
only operations performed in Southington are final machining
operations which involve precision machining and cleaning
operations. The engine disk forgings qualify as blanks for tariff
purposes and have the essential character of the finished aircraft
engine disks. Pursuant to GRI 2(a), HTSUS, the engine disk
forgings are classified as the finished aircraft engine disks under
subheading 8411.91.90, HTSUS, as other parts of turbojets or
turbopropellers.
HOLDING:
Pursuant to GRI 2(a), HTSUS, the aircraft engine disk forgings
are classified under subheading 8411.91.90, HTSUS, as other parts
of turbojets or turbopropellers. The corresponding duty rate for
articles of this subheading is 3.7 percent ad valorem.
Upon meeting all the applicable requirements, articles
classified under subheading 8411.91.90, HTSUS, are eligible for
duty-free treatment under the Agreement on Trade in Civil Aircraft.
Sincerely,
John Durant, Director