CLA-2-82:OT:RR:NC:N1:118
Ms. Amanda M. Simpson
Crowell & Moring LLP
590 Madison Ave.
20th Floor
New York, NY 10022
RE: The tariff classification of a press forge die blank from an unknown country.
Dear Ms. Simpson:
In your letter dated June 27, 2018, on behalf of your client Hitachi Metals America, Ltd., you requested a tariff classification ruling.
The merchandise under consideration is described as a press forge die blank. You have stated that the subject press forge die blank is in the form of a solid rectangular steel block. Before importation, the steel block will undergo the following processes: (1) cut steel from each end to form a particular shape; (2) drill two holes on each end; (3) drill several holes down the length of the top surface; and (4) create slots. After importation into the United States, a layer of metal is removed from the top surface in order to form a specific pattern. This pattern shapes the press forge die blank into a finished crankshaft forging die. The finished crankshaft forging die will be used in the manufacture of automobile crankshafts. It will serve as the lower die within a large closed die forging press. The press uses a hot forging process to form a metal billet into a crankshaft. You have stated that this process does not involve any cutting operations.
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. GRI 2(a) extends the scope of the HTS headings to include unfinished parts, provided the unfinished parts have the essential character of the finished parts. GRI 2(a) further states 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. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled. In addition, Explanatory Note (EN) II under GRI 2(a) states that: The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term "blanks" means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part. Semi-manufactures not yet having the essential shape of the finished articles (such as is generally the case with bars, discs, tubes, etc.) are not regarded as "blanks." Thus, two criteria which an article must meet in order to be classified as a blank for purposes of GRI 2(a) are (1) it must possess the approximate shape or outline of the finished article, and (2) the sole use must be for completion into the finished article. In this case, GRI 2(a) is applicable to the article in question. It is a blank by definition and by statements found in your submission. At time of importation, it meets the two criteria stated above. It has the approximate shape or outline of a finished crankshaft forging die and cannot be used for any other purpose. Information found in your submission indicates that the press forge die blank is a net shape blank which closely approximates the outline of the finished article it will form. Although the article requires some post-importation processing, upon importation it is readily recognizable as the finished article it will become. Further, there is nothing to suggest that the article has any practical use other than for completion into a finished crankshaft forging die. Thus, this office finds that the press forge die blank is an unfinished article which has the essential character of complete or finished good of subheading 8207.30, HTSUS.
You suggested classifying the press forge die blank within subheading 8207.30.6062, HTSUS, which provides for metal forming dies. A complete or finished metal forming die would include an upper and lower die. The imported item is designed to serve as the lower half die within a large closed die forging press. The lower half die cannot perform the function of a complete or finished die with the upper half die. Therefore, when imported separately, the lower die is a part of a complete forming die and is classified accordingly.
The applicable subheading for the press forge die blank will be 8207.30.6095, HTSUS, which provides Interchangeable tools for handtools, whether or not power-operated, or for machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screwdriving), including dies for drawing or extruding metal, and rock drilling or earth boring tools; base metal parts thereof: Tools for pressing, stamping or punching, and parts thereof: Not suitable for cutting metal, and parts thereof…Parts. The general rate of duty will be 2.9% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Anthony E. Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division