CLA-2 OT:RR:CTF:TCM H080821 DSR
Ms. Dianne Jones
Texas Aero Engine Services, LLC
2100 Eagle Parkway
Fort Worth, TX 76177
RE: Revocation of NY N058237, dated May 13, 2009; subheading 7508.90.50, HTSUS; tariff classification of a nickel bolt
Dear Mrs. Jones:
This letter is in reference to New York Ruling Letter (NY) N058237, issued to you on May 13, 2009, regarding the classification under the 2009 Harmonized Tariff Schedule of the United States (HTSUS) of a nickel bolt used to join components within the compressor shaft assembly of a turbine engine. The ruling classified the article under subheading 8414.90.41, HTSUS, which provides for “Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof: Parts: Of compressors: Other: Other.” CBP has reviewed the tariff classification of the subject nickel bolt and has determined that the cited ruling is in error.
Pursuant to section 625 (c)(1), Tariff Act of 1930 (19 U.S.C. 1625 (c)(1)), as amended by section 623 of Title VI, a notice was published in the Customs Bulletin, Vol. 45, No. 49, on November 30, 2011, proposing to revoke NY N058237. No comments were received in response to the notice.
FACTS:
The bolt in question is identified as part number BLT5541, and described as an “odd shaped” bolt made of nickel. Based upon the information made available, the specialized bolt is used to join components within the compressor shaft assembly of a turbine engine.
ISSUE:
Whether the nickel bolt in question is classified under heading 7318, HTSUS, as a bolt, or similar article, of iron or steel; under 7508, HTSUS, as an “other” article of nickel; or under heading 8414, HTSUS, as a part of a compressor.
LAW AND ANALYSIS
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI's). 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’s 2 through 6 may then be applied in order. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89 80, 54 Fed. Reg. 35127 (August 23, 1989).
The HTSUS provisions under consideration in this case 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:
* * * *
7508 Other articles of nickel
* * *
7508.90 Other:
* * *
7508.90.50 Other.
* * * *
8414 Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof:
* * *
8414.90 Parts:
Of compressors:
* * *
8414.90.41 Other.
* * * *
Heading 8414, HTSUS, is found within Section XVI, HTSUS, and covers, inter alia, “air or other gas compressors … and parts thereof.” General Note 2(a), Section XVI, HTSUS, states that, subject to General Note 1 of that section, parts that are goods included in any of the headings of Chapter 84 are to be classified in their respective headings. General Note 1(g) to Section XVI, HTSUS, states that Section XVI does not cover “parts of general use, as defined in Note 2 to Section XV, of base metal …”
General Note 2(a) to Section XV, HTSUS, defines “parts of general use” as “articles of heading … 7318 and other similar articles of other base metals.” (emphasis added). Heading 7318, HTSUS, describes, in part, “screws, bolts, nuts … and similar articles of iron or steel …” Nickel is a base metal, and the subject bolt is composed of nickel. Thus, reading these Notes together, if we determine that the nickel bolt is a part of general use that is similar to bolts of iron or steel of heading 7318, HTSUS, the nickel bolt cannot be classified as a “part” under heading 8414, HTSUS.
Examples of base metal parts of general use classified under heading 7318, HTSUS, include bolts and nuts (including bolt ends), screw studs and other screws for metal (whether or not threaded or tapped). See EN 73.18(A). A bolt is generally defined as a pin or a rod that is designed to hold things together or in place. Hafele America Co., Ltd. v. United States, 870 F. Supp. 352, 355-56 (Ct. Intl. Trade 1994); see also HQ 963662, dated October 25, 2000 (acoustical toggle bolts that acted as fasteners designed so that one end is secured in a surface leaving a protuberance to which something else is attached classified under heading 7318, HTSUS). In addition, in HQ 966789, dated June 21, 2004, CBP deliberated the classification of an oil bolt used in motor vehicles and motorcycles. The bolt was threaded at one end and had a hex-shaped head for applying torque. It was designed to allow the unimpeded flow of brake fluid between a brake hose assembly and a motor vehicle braking system. In spite of the characteristic that allowed the unimpeded flow of oil, CBP concluded that the oil bolt was used as a fastener, as opposed to functioning as a part with a discrete application that makes adjustments in motor vehicles and, thus, was classifiable as a screw of iron or steel under heading 7318, HTSUS. See also Honda of America Mfg., Inc. v. United States, 625 F. Supp. 2d 1324 (Ct. Intl. Trade 2009) (upholding HQ 966789).
The nickel bolt in question simply joins components within the compressor shaft assembly of a turbine engine and is similar in function to the iron or steel bolts that are covered by subheading 7318, HTSUS. It thus meets the definition of a “part of general use” as described by General Note 2(a) to Section XV, HTSUS. According to General Explanatory Note (C), Section XV, HTSUS:
[P]arts of general use (as defined in Note 2 to this section) presented separately are not considered as parts of articles, but are classified in the headings of this Section appropriate to them. This would apply, for example, in the case of bolts specialized for central heating radiators or springs specialized for motor cars. The bolts would be classified in heading 73.18 (as bolts) and not in heading 73.22 (as parts of central heating radiators). The springs would be classified in heading 73.20 (as springs) and not in heading 87.08 (as parts of motor vehicles).
Thus, a nickel bolt that is presented separately and is a “part of general use,” even if specialized for joining a compressor shaft assembly, would be classified in the heading of Section XV that is appropriate to the bolt, as opposed to a heading that covers “parts” of such an assembly. Reading the above General EN together with General Note 1(g) to Section XVI, HTSUS, which states that Section XVI does not cover “parts of general use, as defined in Note 2 to Section XV, of base metal …,” we find that the nickel bolt is excluded from classification under heading 8414, HTSUS, which covers parts of air compressors. The bolt is also excluded from classification under heading 7318, HTSUS, because it is composed of nickel, rather than iron or steel.
Chapter 75, HTSUS, provides for nickel and articles comprised thereof. There is no specific provision within Chapter 75 that describes the subject bolt by name or use. However, a “basket” provision – heading 7508, HTSUS – provides for “Other articles of nickel.” See EN 73.18(B)(4) (stating that the group covers nickel bolts of the types described in the Explanatory Notes to heading 73.18). Reference to a “basket” provision of the tariff is proper only when no other provision describes the merchandise more specifically. See Hafele, supra, at 357. Thus, it is now the position of CBP that the nickel bolt in NY N058237 is classified in heading 7508, HTSUS, specifically in subheading 7508.90.50, HTSUS, which provides for “Other articles of nickel: Other: Other.”
HOLDING:
By application of GRI 1, the subject merchandise identified as part number BLT5541 is classifiable under heading 7508, HTSUS. Specifically, it is classifiable under subheading 7508.90.50, HTSUS, which provides for “Other articles of nickel: Other: Other.” The column one, general rate of duty is 3%. Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N058237, dated May 13, 2009, is hereby revoked.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division