CLA-2 OT:RR:CTF:TCM H013671 KSH
Mr. Kelton M. Moore
TK Holdings, Inc. 422 Gallimore Dairy Road
Greensboro, NC 27409-9725
RE: Request for reconsideration of NY N007218, dated March 1, 2007;
Classification of a Steering Wheel Armature. Dear Mr. Moore:
This letter is in response to your request of June 25, 2007, and your supplemental submission dated October 8, 2007, for reconsideration of New York Ruling Letter (NY) N007218, dated March 1, 2007, as it pertains to the classification of a steering wheel armature under the Harmonized Tariff Schedule of the United States (HTSUS).
FACTS: The steering wheel armature is composed of steel magnesium alloy that is dull silver and measures approximately 14 inches in diameter and 4 ½ inches in circumference. The steering wheel armature is pre-holed and includes a toothed center ring. Once the steering wheel armature is formed, it is encased in energy absorbing foam. Electrical components for the driver bag air module, vehicle horn, cruise control and/or sound system, covers, related wire harnesses, switches, retention plates, springs and the airbag assembly insulator are then added to the steering wheel armature. You advise that at this juncture the steering wheel armature meets government and industry standards for a completed steering wheel.
In NY N007218, the steering wheel armature was classified pursuant to General Rule of Interpretation (GRI) 2(a) in subheading 8708.94.5000, HTSUS, as "Parts and accessories of the motor vehicles of heading 8701 to 8705: Other parts and accessories: Steering wheels, steering columns and steering boxes; parts thereof: Steering wheels, steering columns and steering boxes: For other vehicles".
ISSUE:
Whether the steering wheel armature is classified in subheading 8708.94.5000, HTSUS, as a steering wheel or in subheading 8708.94.7550, HTSUS, as a part of a steering wheel.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the 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 subheadings at issue are as follows:
8708 Parts and accessories of the motor vehicles of heading 8701 to 8705:
Other parts and accessories:
8708.94 Steering wheels, steering columns and steering boxes; parts thereof:
Steering wheels, steering columns and steering boxes:
8708.94.50 For other vehicles…
Parts:
For other vehicles:
8708.94.75 Other…
There is no dispute that the steering wheel armature is classified in subheading 8708.94, HTSUS. At issue is the proper classification of the steering wheel armature at the eight-digit national level.
GRI 6 provides that for legal purposes, classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes, and mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. GRI 6 thus incorporates GRIs 1 through 5 in classifying goods at the subheading level. Since GRI 6 uses the phrase "for legal purposes" the preceding GRIs are to be applied at the level necessary for the final legal classification of the goods for tariff purposes.
The steering wheel armature is potentially classifiable in subheading 8708.94.50, HTSUS, or subheading 8708.94.75, HTSUS. As such, classification of the steering wheel armature cannot be resolved in accordance with GRI 1. Thus resort must be made to the remaining GRIs.
GRI 2(a) provides, in relevant part, that “[a]ny 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.”
The longstanding position of CBP is that the term "essential character" for purposes of GRI 2(a) means 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. The essential character for purposes of GRI 2(a) is determined on a case-by-case basis based on the nature of a given article.
You contend that the steering wheel armature does not have the essential character of a steering wheel because it lacks the proper moment of inertia and cannot be used as a steering wheel until it undergoes the foaming process. You cite several decisions by CBP in which we determined that the merchandise at issue lacked the essential character of the finished article and classified it as a part. Though you argue the steering wheel armature obtains its essential character after the foaming process, it will not meet the Federal Motor Vehicle Safety Standards required to be considered a steering wheel. You maintain that the process of foaming substantially transforms the steering wheel armature into a new and different article of commerce.
As noted above, the determination of essential character in accordance with GRI 2(a) is determined on a case-by-case basis based on the nature of the article. None of the articles at issue in the decisions you cite concerned a steering wheel armature. As such they are not persuasive. Cf. NY K87744, dated July 13, 2004, in which a Steering Wheel Armature was classified in subheading 8708.94.5000, HTSUS.
The steering wheel armature is the skeleton of the steering. William Altenhof, Anna Raczy, Melissa Laframboise, Jennifer Loscher and Ahmet Alpas, Numerical simulation of AM50A Magnesium Alloy Under Large Deformation, 30 International Journal of Impact Engineering 2,(2004) at 117-142. It is the frame upon which the remaining components are placed. As such, the steering wheel armature is the attribute which strongly marks or serves to distinguish what a steering wheel is, is indispensable to the structure and is the core or condition of the steering wheel. In its condition as imported, the steering wheel armature has the essential character of a complete steering wheel. As such, it meets the terms of GRI 2(a).
Whether the foaming process substantially transforms the steering wheel armature is irrelevant for purposes of classification. Likewise, the safety of the steering wheel armature without the additional components and associated requirements of the Federal Motor Vehicle Safety Standards have no bearing on its proper classification.
In your supplemental submission, you cite to The Home Depot, U.S.A., v. United States, Slip. Op. 06-1459 (CAFC 2007), in which GRI 3 was utilized to determine the classification of lighting fixtures composed of metal and glass, plastic or wood. The steering wheel armature, in the condition as imported, does not consist of more than one material or substance. As such, an analysis under GRI 3 is not warranted. See GRI 2(b).
Inasmuch as the steering wheel armature is classifiable as an imcomplete or unfinished steering wheel in accordance with GRI 2(a), it cannot be classified as a part. Moreover, U.S. Additional Rule of Interpretation 1(c) provides that, “[a] provision for parts of an article covers products solely or principally used as a part of such articles but a provision for ‘parts’ or ‘parts and accessories’ shall not prevail over a specific provision for such part or accessory[.]” Accordingly, subheading 8708.94.50000, HTSUS, is a specific provision for the steering wheel armature and thus prevails over the parts provision.
HOLDING:
Pursuant to GRI 6 and GRI 2(a), the steering wheel armature is classified in subheading 8708.94.5000, HTSUS, which provides for: " Parts and accessories of the motor vehicles of heading 8701 to 8705: Other parts and accessories: Steering wheels, steering columns and steering boxes; parts thereof: Steering wheels, steering columns and steering boxes: For other vehicles". The column one, general rate of duty is 2.5% ad valorem.
EFFECT ON OTHER RULINGS:
NY N007218, dated March 1, 2007, is hereby affirmed.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division