CLA-2 RR:CR:GC 960359 HMC
Port Director of Customs
1901-K Cross Beam Drive
Charlotte, NC 28217
RE: PRD 1512-96-100255; Steel Shaft; Subheading 8482.99.05;
Explanatory Notes 72.15 and 84.82; Other Bars and Rods of Iron or
Nonalloy Steel; Inner or Outer Rings or Races for Ball Bearings.
Dear Port Director:
This is our decision on Protest 1512-96-100255, filed
against your classification of steel shafts. The entries under
protest were liquidated on November 8, 15, and 22, 1996, and this
protest timely filed on December 12, 1996. A sample was
submitted for examination.
FACTS:
The merchandise under protest consists of steel shafts
manufactured in Germany. The shafts are solid circular stainless
steel rods machined to antifriction bearing specifications that
can be used for linear motion guideways and other applications,
such as guide rods, control rods, rollers, pistons, axles, guide
pins, tie rods, spindles, guide columns and mandrels. Literature
provided by the importer explains that the steel shafts are
induction hardened and centerless ground. Complete machining
services are available to create keyways, flats, tapped holes,
coaxial holes, grooves, etc. The literature provides the
customer with design specifications and illustrations of the
different adjustments that may be done to the shafts.
The merchandise was entered under a provision for other bars
and rods of iron or nonalloy steel, not further worked than cold-formed or cold-finished in subheading 7215.50.00 of the
Harmonized Tariff Schedule of the United States (HTSUS).
However, the entries were liquidated under subheading 8482.99.05,
HTSUS, as inner or outer rings or races for ball bearings.
The provisions under consideration are as follows:
7215 Other bars and rods of iron or nonalloy
steel:
7215.50.00 Other, not further worked than cold-formed or cold-finished...6%
* * * *
7222 Other bars and rods of stainless steel;
angles, shapes and sections of stainless
steel:
7222.20.00 Bars and rods, not further worked than
cold-formed or cold-finished...8.5%
* * * *
8482 Ball or roller bearings, and parts thereof:
Parts:
8482.99 Other:
Inner or outer rings or races:
8482.99.05 For ball
bearings...10.6%
ISSUE:
Whether the stainless steel shaft is classifiable as other
bars and rods, not further worked than cold-formed or cold
finished under subheadings 7215.50.00 or 7222.20.00, HTSUS, or as
inner or outer rings or races for ball bearings under subheading
8482.99.05, HTSUS.
LAW AND ANALYSIS:
Merchandise is classifiable under the 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.
Protestant claims that the steel shafts are classifiable as
other bars or rods or nonalloy steel, not further worked than
cold-formed or cold-finished under subheading 7215.50.00, HTSUS,
based on the premise that the merchandise has different uses as
imported.
Chapter 72, Note 1(m), HTSUS, states, in part, that the
expression "other bars and rods" means
[p]roducts which do not conform to any of the definitions at
(ij), (k) or (l) above or to the definition of wire, which
have a uniform solid cross section along their whole length
in the shape of circles, segments of circles, ovals,
rectangles (including squares), triangles or other convex
polygons (including "flattened circles" and "modified
rectangles", of which two opposite sides are convex arcs,
the other two sides being straight, of equal length and
parallel).
The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the 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 ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg.
35127, 35128 (Aug. 23, 1989). EN 72.15 states in part, at page
1088, that heading 7215
covers bars and rods other than those of heading 72.13 or
72.14. The bars and rods of this heading may :
(1) be obtained by cold-forming or cold-finishing, i.e.,
have been subjected either to a cold pass through one
or more dies (cold-drawn bars) or to a grinding or
turning process (grinded or sized bars).
(2) have been subjected to working (such as drilling or
sizing, or to futher [sic] surface treatments than are
allowed for products of heading 72.14, such as plating,
coating, or cladding (see Part (IV) (C) of the General
Explanatory Note to this Chapter), provided that they
do not thereby assume the character of articles or of
products falling within other headings;
We believe that the subject steel rods meet the definition
of Note 1(m) to Chapter 72 and the ENs. The steel rods in this
instance have a solid cross section along their whole length in
the shape of a circle. The shafts are machined to antifriction
bearing specifications but such work, we believe, does not
exclude them from classification within Chapter 72.
We note that the shafts are made of stainless steel and, as
such, are better described by heading 7222 that provides for
other bars and rods of stainless steel. EN 72.22 states that the
provisions of the Explanatory Notes to headings 7214 to 7216
apply, mutatis mutandis, to the products of this heading. The
stainless steel shafts are thus classifiable in subheading
7222.20.00, HTSUS, as other bars and rods of stainless steel, not
further worked than cold-formed or cold-finished.
Customs classified the steel shafts under subheading
8482.99.05, HTSUS, as other inner or outer rings or races, which
are parts for ball bearings. EN 84.82 states that normally
bearings consist of two concentric rings (races) enclosing the
balls or rollers, and a cage which keeps them in place and
ensures that their spacing remains constant. The EN also states
that heading 8482 covers parts of ball, roller or needle roller
bearings. We believe that the imported shafts are not like any
of the items described by the ENs. Furthermore, protestant has
provided sufficient evidence showing that the steel shafts are
used for many applications other than ball bearings.
We note HQ 958014, dated July 20, 1995, wherein circular
steel shafts were classified as inner or outer rings or races for
ball bearings under subheading 8482.99.05, HTSUS. The
merchandise in that ruling is distinguishable from the
merchandise subject of this protest. The merchandise in HQ
958014 did not consist of a solid circular shaft designed to have
multiple uses. Furthermore, heading 7222 was not considered in
HQ 958014, and we find that it is heading 7222, not heading 8482
that describes the subject steel shafts.
HOLDING:
Under the authority of GRI 1, the steel shafts are provided
for in heading 7222, HTSUS. They are classifiable in subheading
7222.20.00, HTSUS, as other bars and rods of iron or nonalloy
steel, not further worked than cold-formed or cold-finished.
This protest should be DENIED, except to the extent
reclassification of the merchandise as indicated above results in
a partial allowance. 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