CLA-2 RR:CR:GC: 966478 RSD
Tariff No. 8454.90.00
David R. Stepp, Esq.
Katten Muchin Zavis Roseman
2029 Century Park East
Suite 2600
Los Angeles, California 90067-3012
RE: Half Dies for Casting Machines, GRI 2(a), Essential Character
Dear Mr. Stepp:
This is in response to your letter dated May 15, 2003, on behalf of Ryobi Die Casting USA, Inc. requesting a ruling regarding the classification of a half die for casting machines under the Harmonized Tariff Schedule of the United States (HTSUS). Your submission included materials and information regarding dies.
FACTS:
The subject merchandise is one-half of a die casting die of alloy tool steel. A complete die casting die is actually a mold used to produce a part with a defined shape and dimensions to fit a particular customer’s requirements. The die casting die is comprised of two parts or halves. The die halves are mounted onto a die casting machine’s two platens so that once the machine closes, the die halves will fit together perfectly and make the completed die. One die half is moveable, while the other die half is stationary or fixed. Due to the size of the dies and the time required to assemble and set the dies onto the casting machines, the die casting die halves are often shipped separately. It is our understanding that Ryobi will be importing both ejector half dies and stationary half dies in separate shipments.
After importation, the two die halves will be assembled into a functional die or mold by mounting them onto a die casting machine. Molten aluminum is then injected into the die at a high velocity and locking pressure based on the size of the casting machine. The importer uses die casting machines that have a range of 500 to 3500 tons of locking pressure. The molten aluminum solidifies and then is ejected, producing a part to the customer’s specifications. The imported die half that is the subject of this case is uniquely designed only for a particular die casting machine and will not function with another die casting machine.
Customs and Border Protection (CPB) at the port of Chicago believes that the half die should be classified in subheading 8454.90.00, HTSUS as parts of die casting machines. However, CPB at the port of Los Angeles was uncertain as to whether the half die has the essential character of the complete die of subheading 8480.41.00, HTSUS, which provides for molds for metal or metal carbides: injection or compression type.
ISSUE:
Whether the imported die half is classified under heading 8480, HTSUS, because it possesses the essential character of a complete mold for metal, or is classified as part of a die casting machine in heading 8454, HTSUS.
LAW AND ANALYSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied.
The provisions under consideration are as follows:
Converters, ladles, ingot molds and casting machines, of a kind used in metallurgy or in metal foundries, and parts thereof:
8454.90.00 Parts
Of casting machines
* * *
8480 Molding boxes for metal foundry; mold bases, molding
patterns; molds for metal (other than ingot molds),
metal carbides, glass, mineral materials, rubber or plastics:
8480.41.00 Injection or compression types
In understanding the language of the HTSUS, the Explanatory Notes (ENs) may be utilized. The ENs, although not dispositive, are to be used to determine the proper interpretation of the HTSUS 54 Fed. Re. 35127, 35128 (August 23, 1989).
In part, EN 84.80 states that
(D) Moulds for Metal (other than Ingot Moulds) or for Metal Carbides
This group includes:
Chill-moulds (die-casts). These take the form of a metallic casing consisting of two or more
adjustable parts which reproduce, in hollow form, the shape of the required articles.
Pressure-casting moulds, into which the molten metal is forced under pressure. They normally consist of two complementary metallic chill-moulds, with hollows corresponding to the shape of the required articles in their opposing faces, in some cases the halves of the mould compress the molten metal to a certain degree.
Section XVI, note 2, HTSUS states that:
(a) Parts which are goods included in any headings of chapter 84 and 85 (other than heading 8485 and 8548) are in all cases to be classified in their respective headings;
(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading...are to be classified with the machines of that kind...;
(c) All other parts are to be classified in heading 8485 or 8548.
In HQ 954331, dated June 10, 1993, we explained that under section XVI, note 2(a), HTSUS, because the die is classifiable as a mold for metal under heading 8480, HTSUS, it is precluded from classification as a part under heading 8454, HTSUS. Therefore, we held that a die was classifiable under subheading 8480.41.00, HTSUS, as a mold for metal.
Although subsequent to importation the two die halves are mounted on the die casting machine so as to fit together as a complete die, what is being imported in this case is a half die. Accordingly, in this instance, the issue is whether the half die should be classified in the same heading as the complete die.
Because the half die is incomplete or unfinished, GRI 2(a) becomes relevant. GRI 2(a) provides, in part, 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 entered, the incomplete or unfinished article has the essential character of the complete or finished article.
In interpreting the HTSUS, we have construed the term "essential character" 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. See HQ 956538, dated November 29, 1994. As the merchandise changes, so, too, may the factor or factors which determine its essential character. Factors found to be relevant in other contexts are the significance of the imported components or their role in relation to the use or overall functioning of the completed article and, to the extent that it validates that comparison, the cost or value of the completed article versus the cost or value of the imported merchandise. See HQ 956410, dated October 14, 1994.
In order to get a better understanding of the imported article and how it will be used, we have consulted the North American Die Casting Association’s website. Page six of the website indicates that dies or die casting tooling are made of alloy tool steels in at least two sections; the fixed die half or cover and the ejector die half to permit removal of castings. Modern dies also may have moveable slides, cores or other sections to produce holes, threads and other desired shapes in the casting. Sprue holes in the fixed die half allow molten metal to enter the die and then fill the cavity. The ejector half usually contains the runners (passageways) and gates (inlets) that route molten metal to the cavity. Dies also include locking pins to secure the two halves, ejector pins to help remove the cast part, and openings for coolant and lubricant.
We have not specifically ruled on whether a half die has the essential character of the complete die. However, we have considered an analogous situation concerning half sections of suitcases. In HQ 959015, dated April 24, 2000, Customs considered the classification of separately imported left and right sides of a vertical suitcase. We ruled that since neither of the separately imported components formed an enclosure that was capable of performing the function of a finished suitcase i.e., to organize, to store, to protect, or to carry items, the articles as entered did not possess the essential character of the complete suitcase. In other words, we determined that neither the left or right side of a vertical suitcase as entered, possessed the essential character of a complete or finished suitcase.
Similarly, half of a die cannot perform the function of a complete or finished die. The use and function of a complete die is to hold injected molten aluminum under extreme pressure until the aluminum solidifies, thereby forming the fabricated finished product. The half die is certainly incapable of holding the molten aluminum in place. In addition, the imported article also lacks a significant amount of the bulk, weight, and value of the finished die. Moreover, as mentioned above, the North American Die Casting Association website indicates that a die consists of at least two sections. In this instance, the imported article consists of only one section of the complete die. Thus, a very significant piece of the finished die is absent from the imported article. Consequently, many of the important properties of the complete die are not present in the imported article. Since so much material is missing from the complete die, we believe that the half die does not yet have the identity of a complete die. Accordingly, we conclude that the imported half die does not have the essential character of the complete mold of heading 8480, HTSUS. Because heading 8480, HTSUS does not include parts, the half die cannot be classified in that heading.
Section XVI, Note 2(b), states that other parts suitable for use solely or principally with a particular kind of machine are to be classified with machines of that kind. Casting machines are provided for under subheading 8454.30.00, HTSUS. There is a parts provision for casting machines under subheading 8454.90.00, HTSUS. Therefore, in accordance with Section XVI, Note 2(b), we conclude that the half die is classified as a part of the machine on which it will be solely or principally used.
HOLDING:
The half dies are classifiable in subheading 8454.90.00, HTSUS, which provides, in pertinent part, for, casting
machines, of a kind used in metallurgy or in metal foundries, and parts thereof.
Sincerely,
Myles B. Harmon
Director, Commercial Rulings Division