Protest No. 2904-91-000123; Forgings; Inner And Outer Rings, Races For Slewing Rings Of Fork Lift Trucks; Gears; Gearing; Parts; Subheading 7326.19.00; HQ 083066

HQ 950219 March 24, 1992 CLA-2 CO:R:C:M 950219 CMS CATEGORY: Classification TARIFF NO.: 8483.90.50 District Director of Customs 511 N.W. Broadway Federal Bldg. Portland, OR 97209 RE: Protest No. 2904-91-000123; Forgings; Inner And Outer Rings, Races For Slewing Rings Of Fork Lift Trucks; Gears; Gearing; Parts; Subheading 7326.19.00; HQ 083066 Dear District Director: This protest was filed against your liquidation dated May 10, 1991, in which certain products were classified in subheading 7326.19.00, Harmonized Tariff Schedule of the United States (HTSUS). FACTS: The merchandise consists of articles described on the invoices as "Steel Forging[s]". The forged articles are processed prior to importation, and are then processed after importation into finished inner and outer sections of slewing rings for fork lift trucks. Prior to importation, a rough circular forging is punched to form a donut shaped article. The article is then heat treated to a specified core hardness, and sliced to produce individual rings. The forgings at this stage are out-of-round in inner and outer diameter and are out-of-flat across the faces. The rings are then machined on all faces on a numerically controlled lathe. This machining achieves a specified inner and outer diameter, and a thickness with a tolerance within .008". In their condition as imported, the rings have essentially been machined to their final degree of thickness. -2- ISSUE: Is the merchandise classified as parts of gears and gearing in Heading 8483, or as other articles of iron or steel in Heading 7326? LAW AND ANALYSIS: The HTSUS provides that the classification of articles is governed by the General Rules of Interpretation (GRI's). GRI 1 states in pertinent part that "...classification shall be determined according to the terms of the headings and any relative section or chapter notes...". GRI 2(a) provides in part that a reference in a heading to an article shall 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. Heading 8483 in part describes parts of gears and gearing. Heading 7326 describes other articles of iron or steel. The products as imported are not complete or finished inner and outer sections of slewing rings. The determination must be made as to whether the products have the essential character of complete or finished inner and outer sections of slewing rings. Samples of the articles in the three stages of (1) pre- importation rough forgings, (2) condition as imported, and (3) post-importation finished products have been provided to Headquarters. An examination of these articles and the protestant's submissions dated September 20, 1991, and February 18, 1992, indicates that the products in their condition as imported are not merely forged, but are forgings which have undergone a substantial degree of machining. In their condition as imported they have essentially been machined to their final degree of thickness. The products are similar to the unfinished inner and outer sections of slewing rings we classified as parts of gears and gearing in HQ 083066 (April 6, 1989). As the parts in HQ 083066, the products under consideration have been finish machined in thickness and will be subject to further machining on the inner and outer diameter faces after importation (e.g., cutting of gear teeth and grinding of ball path). We are satisfied that the goods are only fit for use, except for fugitive use, as inner and outer -3- sections of slewing rings. The imported products have the thickness of the finished product, and their inner and outer diameter is such that the products are prepared for final cutting and grinding on these faces. After a thorough review of the slewing ring products in their condition as imported, and the pre-importation and post-importation processing, we conclude that the products have the essential character of complete or finished inner and outer sections of slewing rings. The products are described by Heading 8483 as parts of gears and gearing, and are classified in subheading 8483.90.50, HTSUS. The Harmonized Commodity Description and Coding System Explanatory Notes to Heading 7326, p. 1037, provide that the heading for "Other" articles of iron or steel would not include articles which are more specifically covered elsewhere in the Nomenclature. The products under consideration are described and used as parts of gears and gearing, and are classified as such in Heading 8483. HOLDING: The merchandise is classified as parts of gears and gearing in subheading 8483.90.50, HTSUS. The protest should be granted. A copy of this decision should be attached to the Customs Form 19 and mailed to the protestant as part of the notice of action on the protest. Sincerely, John Durant, Director Commercial Rulings Division