Rough Cast Steel Rings; Hand Operated Knife Gate Valve; Explanatory Note 73.25; 7325.99.50

HQ 955839 April 12, 1994 CLA-2 CO:R:C:M 955839 DWS CATEGORY: Classification TARIFF NO.: 8481.90.30 Ms. R. Elaine Evans V. Alexander & Co., Inc. P.O. Box 291929 Nashville, TN 37229-1929 RE: Rough Cast Steel Rings; Hand Operated Knife Gate Valve; Explanatory Note 73.25; 7325.99.50 Dear Ms. Evans: This is in response to your letter of January 31, 1994, on behalf of Dezurik, concerning the classification of rough cast steel rings under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was forwarded to this office along with a sample of the subject merchandise. FACTS: The merchandise consists of rough cast steel rings, used as the body portion of a hand operated knife gate valve. After importation, the merchandise undergoes further assembly processing, consisting of the grinding of the valve seats, the drilling and tapping of the fittings, and then the assembly of other components (i.e., bonnets, stems, gates) until a finished valve is created. The rings are not further worked after importation into the U.S. The subheadings under consideration are as follows: 7325.99.50: [o]ther cast articles of iron or steel: [o]ther: [o]ther: [o]ther. The general, column one rate of duty for goods classifiable under this provision is 5.7 percent ad valorem. 8481.90.30: [t]aps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: [p]arts: [o]f hand operated and check appliances: [o]f iron or steel. The general, column one rate of duty for goods classifiable under this provision is 8 percent ad valorem. ISSUE: Whether the rough cast steel rings are classifiable under subheading 7325.99.50, HTSUS, as other cast articles of steel, or under subheading 8481.90.30, HTSUS, as parts of hand operated valves. LAW AND ANALYSIS: Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes. In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes, although not dispositive, are to be used to determine the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory Note 73.25 (p. 1037) states that: [t]his heading covers all cast articles of iron or steel, not elsewhere specified or included. . . This heading does not cover castings which are products falling in other headings of the Nomenclature (e.g., recognisable parts of machinery or mechanical appliances) or unfinished castings which require further working but have the essential character of such finished products. . . Having inspected the provided sample, it is our position that the merchandise, although being a cast article, is definitely recognizable as a part of a hand operated knife gate valve. Therefore, it is precluded from classification under subheading 7325.99.50, HTSUS. In accordance with Explanatory Note 73.25, the rough cast steel rings are classifiable under subheading 8481.90.30, HTSUS. HOLDING: The rough cast steel rings are classifiable under subheading 8481.90.30, HTSUS, as parts of hand operated valves. Sincerely, John Durant, Director