CBP Ruling H088396

HQ H088396 January 7, 2013 CLA-2 OT:RR:CTF:TCM H088396 RES CATEGORY: Classification TARIFF NO.: 8482.10.5068; 8483.20.8040; 8483.30.8020 Mr. Adam Levy NNR Global Logistics 512 East Dallas Road #400 Grapevine, TX 76051 RE: Modification of NY N070076, dated August 25, 2009. Dear Mr. Levy: This letter is to inform you that U.S. Customs and Border Protection ("CBP") has reconsidered New York ("NY") Ruling letter N070076, dated August 25, 2009, issued to you on behalf of your client, United Technologies, regarding the classification, under the Harmonized Tariff Schedule of the United States ("HTSUS"), of pivot bearings, pivot bearing housings, and pivot bearings combined with a housing. In NY N070076, CBP classified the pivot bearings and pivot bearings combined with a housing as articles of semi-precious stones under heading 7116, HTSUS, and classified the pivot bearing housings as bearing housings under heading 8483, HTSUS. CBP has determined that NY N070076 was in error with respect to the classification of the pivot bearings and the pivot bearings combined with a housing. Accordingly, we are modifying NY N070076 to reflect the proper classification of the pivot bearings and the pivot bearings combined with a housing. 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, notice of the proposed action was published on August 29, 2012, in Volume 46, Number 36, of the Customs Bulletin. CBP did not receive any comments during the notice period. FACTS: In NY N070076, there are three different articles as issue: pivot bearings, part # 1110-113941; pivot bearing housings, part # 1110-114190; and pivot bearings combined with a housing, part # 1110-114510. All three articles are parts used in an altimeter, which is an aeronautical instrument that measures the altitude of an aircraft above a fixed level. The pivot bearings are comprised of custom-made steel balls with a sapphire plate that retains the balls. The pivot bearing housing assemblies are made of brass. The housing assemblies incorporate the pivot bearings to form the combined housing with bearings assembly that ultimately becomes integrated into the final altimeter product. According to United Instruments, all parts are made-to-order for the company's own altimeter instruments and are not used in other aeronautical instrument manufacturers' products. ISSUE: Whether the pivot bearings are classified under heading 9014, HTSUS, as parts of aeronautical instruments, or under heading 8482, HTSUS, as ball bearings? Whether the pivot bearing housings and the pivot bearings combined with a housing part are classified under heading 7116, HTSUS, as articles of precious stones, under heading 9014, HTSUS, as parts of navigational instruments, or under heading 8483, HTSUS, as bearing housings/housed bearings? LAW AND ANALYSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be "determined according to the terms of the headings 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 2 through 6 may be applied in order. In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the Harmonized System at the international level, 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 following HTSUS provisions are under consideration: 7116 Articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed): 8482 Ball or roller bearings, and parts thereof: 8483 Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof: 9014 Direction finding compasses; other navigational instruments and appliances; parts and accessories thereof: The applicable part of Legal Note 3(k) to Chapter 71, HTSUS, for the merchandise at issue is as follows: 3. This chapter does not cover: * * * (k) . . . machinery, mechanical appliances or electrical goods, or parts thereof, of section XVI. . . . * * * * * The applicable Legal Notes to Section XVI, HTSUS, for the merchandise at issue are as follows: 1. This section does not cover: * * * (f) Precious or semiprecious stones (natural, synthetic or reconstructed) of headings 7102 to 7104, or articles wholly of such stones of heading 7116, except unmounted worked sapphires an diamonds for styli (heading 8522); * * * 2. Subject to 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546, or 8547) are to be classified according to the following rules: (a) Parts which are goods included in any of the headings of chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; * * * * * The applicable Legal Notes to Chapter 90, HTSUS, for the merchandise at issue are as follows: * * * * * 2. Subject to 1 above, parts and accessories for machines, apparatus, instruments or articles of this chapter are to be classified according to the following rules: (a) Parts and accessories which are goods included in any of the headings of this chapter or of Chapter 84, 85 or 91 (other than heading 8487, 8548 or 9033) are in all cases to be classified in their respective headings; * * * * * The articles at issue in NY L070076 are analyzed separately in light of the legal notes above and specifically of the Legal Note 3(k) to Chapter 71, HTSUS. Pivot Bearings: part # 1110-113941 The pivot bearings were classified in NY N070076 under heading 7116, HTSUS, because of the sapphire plate that was part of the pivot bearings. Upon further examination, it is noted that these pivot bearings are themselves classifiable under a specific provision for bearings under Section XVI, specifically under heading 8482, HTSUS. Pursuant to Legal Note 3(k) to Chapter 71, the pivot bearings are precluded from classification under Chapter 71 because they are articles classifiable under Section XVI. Furthermore, Note 1(f) to Section XVI does not preclude classification in heading 8482 because the articles are not "wholly of such stones of heading 7116." United Instruments asserted, in its original ruling request, that the pivot bearings should be classified under heading 9014, HTSUS, because they are parts of aeronautical instruments. Although, the pivot bearings at issue here are parts of altimeters, which are aeronautical instruments classifiable in Chapter 90, the pivot bearings are precluded from classification under Chapter 90 on account of Legal Note 2(a) to Chapter 90 which directs that parts and accessories of goods of Chapter 84 are to be classified in their respective headings. Pursuant to Legal Note 2(a) to Chapter 90, a specific provision for an article classifiable in Chapter 84 prevails over a general parts provision for instruments classifiable in Chapter 90. In additional, Legal Note 2(a) to Section XVI directs that a part that is a good in a heading of Chapter 84 is classified in its respective heading. Therefore, the pivot bearings are properly classified under heading 8482, HTSUS, which specifically provides for ball or roller bearings. Pivot Bearing Housings: part # 1110-114190 In NY N070076, the pivot bearing housings were classified under heading 8483, HTSUS, because they did not contain sapphire and because a bearing housing is specifically provided for in a provision under heading 8483. United Instruments asserted, in its original ruling request, that the bearing housings should be classified under heading 9014, HTSUS, because they are parts of aeronautical instruments. However, as explained supra, pursuant to Legal Note 2(a) to Chapter 90, a specific provision for an article classifiable under Chapter 84 prevails over a general parts provision for instruments classifiable in Chapter 90. In additional, Legal Note 2(a) to Section XVI directs that a part that is a good in a heading of Chapter 84 is classified in its respective heading. Therefore, the pivot bearing housings were properly classified in NY N070076 under heading 8483, HTSUS, which specifically provides for bearing housings. Pivot Bearing Combined With Housing: part # 1110-114510 The part containing pivot bearings combined with a housing was classified under heading 7116, HTSUS, in NY N070076. Like the pivot bearings themselves, the presence of a sapphire plate does not preclude classification in Section XVI. Therefore, the pivot bearings combined with a housing is properly classified under heading 8483, HTSUS, which specifically provides for housed bearings. (See Note 2(a) to Chapter 90, HTSUS). HOLDING: Pursuant to GRI 1, Legal Note 3(k) to Chapter 71, Legal Note 2(a) to Section XVI, and Legal Note 2(a) to Chapter 90, the pivot bearings, part # 1110-113941, articles at issue are classified under heading 8482, specifically, subheading 8482.10.5068, HTSUSA, as "[b]all or roller bearings, and parts thereof; [b]all bearings: [o]ther: [o]ther." The general, column one, rate of duty is 9 percent ad valorem. Pursuant to GRI 1, Legal Note 2(a) to Section XVI, and Legal Note 2(a) to Chapter 90, the pivot bearing housings, part # 1110-114190, articles at issue are classified under heading 8483, specifically, subheading 8483.30.8020, HTSUSA, as "[t]ransmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof: [b]earing housings; plain shaft bearings: [o]ther: [b]earing housings: [b]all or roller bearing type." The general, column one, rate of duty is 4.5 percent ad valorem. Pursuant to GRI 1, Legal Note 3(k) to Chapter 71, Legal Note 2(a) to Section XVI, and Legal Note 2(a) to Chapter 90, the pivot bearings combined with a housing, part # 1110-114510, article at issue is classified under heading 8483, specifically, subheading 8483.20.8040, HTSUSA, as "[t]ransmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof: [h]oused bearings, incorporating ball or roller bearings: [o]ther: [i]ncorporating ball bearings." The general, column one, rate of duty is 4.5 percent ad valorem. EFFECTS ON OTHER RULINGS: NY N070066, dated August 25, 2009, is hereby MODIFIED. In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division 5