CLA-2 R:C:M 957103 JAS
Donald J. Unger, Esq.
Barnes, Richardson & Colburn
200 East Randolph Drive, Suite 7920
Chicago, IL 60601
RE: NY 897323 Affirmed; Stamped Steel Rings for Grease Seals;
Grease Seals, NY 848970, NY 872179, NY 804823; Parts of Ball
or Roller Bearings, Section XVI, Note 2, HQ 952019;
Unfinished Articles, GRI 2(a); Washers of Iron or Steel,
Subheading 7318.22.00; Articles of Iron or Steel, Subheading
7326.90.85
Dear Mr. Unger:
In letters dated September 28, 1994, and March 30, 1995, on
behalf of the Nakanishi Manufacturing Corporation, you ask that
we review a ruling in which the Area Director of Customs, New
York Seaport, held that stamped steel rings for bearing seals
were classifiable as parts of ball bearings in subheading
8482.99.35, Harmonized Tariff Schedule of the United States
(HTSUS).
FACTS:
The articles in question are steel rings with holes in the
middle used in the production of grease seals for ball bearing
assemblies. The rings are stamped from zinc coated steel sheets
and have raised inner and outer circumferences in the form of
lips. The rings are then coated with a binding adhesive which is
their condition as imported. After importation, rubber disks are
bonded to the steel rings to form grease seals which are then
assembled into ball bearings. The rubber is said to be essential
to the seals' function of keeping grease in the assembly and dirt
and other foreign matter out.
In NY 897323, dated May 19, 1994, these stamped steel rings
for bearing grease seals were held to be classifiable in
subheading 8482.99.35, HTSUS, a provision for other parts of ball
bearings. You maintain that this classification is incorrect.
- 2 -
You propose as a first alternative classification the
provision for washers of iron or steel, in subheading 7318.22.00,
HTSUS. You cite relevant Harmonized Commodity Description and
Coding System Explanatory Notes and dictionary definitions of the
term "washer" to support this claim. A second alternative
classification you propose is the provision for articles of iron
or steel, in subheading 7326.90.90 (now 85), HTSUS, because the
articles in question are not provided for elsewhere in the tariff
schedules.
The provisions under consideration are as follows:
7318 Screws, bolts, nuts, coach screws, screw
hooks, rivets, cotters, cotter pins, washers
(including spring washers) and similar
articles, of iron or steel:
Threaded articles:
Non-threaded articles:
7318.22.00 Other washers...Free
* * * *
7326 Other articles of iron or steel:
7326.90 Other:
7326.90.85 Other...5.1 percent
* * * *
8482 Ball or roller bearings, and parts thereof:
Parts:
Other:
Other:
8482.99.35 Parts of ball bearings
(including parts of
ball bearings with
integral shafts)
...10.8 percent
- 3 -
ISSUE:
Whether the stamped steel rings are washers for tariff
purposes; whether they are unfinished grease seals for ball
bearings; whether they are parts of ball bearings.
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. Under GRI
2(a), an incomplete or unfinished article is to be classified as
the complete or finished article if, in its condition as
imported, it 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).
As to the first claim, the term washer is not defined in the
text of the HTSUS. However, relevant ENs at p. 1030 state that
washers [of heading 7318] are usually small, thin, discs with a
hole in the centre; they are placed between the nut and one of
the parts to be fixed to protect the latter. They may be plain,
cut, split (e.g., Grower's spring washers), curved, cone shaped,
etc. These are the same ENs you cite in concluding that the
steel rings look like and can function as washers. We disagree.
There is no evidence that stamped steel rings for grease seals
are commonly known as washers, or are regularly bought and sold
in the fastener trade as washers. These stamped steel rings do
not comport with the description of the term washer in the cited
ENs. Accordingly, they are not provided for in heading 7318.
The next issue is whether these stamped steel rings qualify
as unfinished grease seals for ball bearings. A complete or
finished grease seal is a composite good consisting of different
materials or components, one encompassed by heading 4016,
articles of vulcanized rubber, the other encompassed by heading
7326, articles of iron or steel. Each heading describes part - 4 -
only of the good. Under GRI 3(b), such goods are to be
classified as if consisting only of that material or component
that gives them their essential character. In this case we find
that the essential character of complete grease seals for ball
bearings is imparted by the rubber. While it is the base metal
substrate that gives the seal its shape and imparts rigidity, the
rubber component gives the seal its ability to adhere to the
surface of the bearing assembly, thus retaining the grease and
keeping foreign matter out. For this reason, grease seals for
ball bearings are provided for in heading 4016, as other articles
of vulcanized rubber. NY 848970, dated February 20, 1990, NY
872179, dated April 7, 1992, and NY 804823, dated December 23,
1994, support this position. It necessarily follows that
articles of base metal cannot be regarded for tariff purposes as
unfinished articles of heading 4016.
As to the applicability of heading 8482, goods that are
identifiable as parts of machines or apparatus of chapters 84 and
85 are to be classified according to Section XVI, Note 2, HTSUS,
to the extent the note applies. See HQ 952019, dated March 18,
1993, and related cases. These steel rings are not goods
included in any heading of chapter 84 or chapter 85. See Note
2(a). If they are parts suitable for use solely or principally
with a machine, apparatus or appliance of chapters 84 or 85, they
are to be classified in the provision for the machine, apparatus
or appliance and its parts. See Note 2(b). The configuration of
these steel rings and the purpose they serve lead us to conclude
that they are integral, constituent and component parts necessary
to the completion and proper functioning of ball bearing
assemblies. For this reason, the steel rings in issue qualify as
parts for tariff purposes and are classifiable in subheading
8482.99.35, HTSUS. There is no issue as to their sole or
principal use. This conclusion makes it unnecessary to discuss
subheading 7326.90.85.
HOLDING:
Under GRI 1, HTSUS, the steel rings stamped from zinc coated
steel sheet with raised lips, as described, are provided for in
heading 8482, a provision for ball or roller bearings, and parts
thereof. They are classifiable in subheading 8482.99.35, HTSUS.
EFFECT ON OTHER RULINGS:
NY 897323, dated May 19, 1994, is affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division