HQ 081550: Silicon electrical steel in toroids; unfinished parts of transformers; 19 U.S.C. 1516

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                        HQ 081550

                                    October 18, 1989

             CLA-2 CO:R:CV:G:  081550 JLV

             CATEGORY:  Classification

             TARIFF NO.:  682.60

             Paul C. Rosenthal, Esq.
             Collier, Shannon, Rill & Scott
             1055 Thomas Jefferson Street, N.W.
             Washington, D.C. 20007

             RE:  Silicon electrical steel in toroids; unfinished parts of
                  transformers; 19 U.S.C. 1516

             Dear Mr. Rosenthal:

                  In a petition of January 4, 1988, on behalf of Armco,
             Inc. and Allegheny-Ludlum Steel Corp., filed pursuant to
             section 516, Tariff Act of 1930, as amended (19 U.S.C. 1516),
             you challenged our classification of certain toroids as parts
             of transformers in item 682.60, Tariff Schedules of the United
             States (TSUS).  The petition was accepted and notice of
             receipt of the petition was published on July 14, 1988, in the
             Federal Register (53 FR 26605).  Six commentors, including the
             petitioners, responded to the notice and request for comments.
             This letter is our decision on the petition.

             FACTS:

                  The articles in issue are called "toroids" and consist of
             lengths of silicon electrical steel which are wound in a
             specific manner so as to be layered to produce air gaps at
             specific distances.  The size of the toroid and the number of
             layers of silicon steel are specific and determine the
             application of the toroid.  The toroids may either be welded
             or riveted to maintain the shape.

                  Subsequent processing of a toroid includes forming into a
             rectangular shape, annealing to remove mechanical stresses,
             disassembly and reassembly in the same order around a coil,
             and addition of insulation and binding materials.















                                          - 2 -

                  In a ruling letter of December 23, 1986 (file 077880), we
             held that these toroids were unfinished electrical components
             and classified as parts of transformers in item 682.60, TSUS.

             ISSUE:

                  Are the toroids unfinished parts of transformers and,
             therefore, classifiable in item 682.60, TSUS, or are they
             basic shapes (sheets or strip) in coil form, and classifiable
             in schedule 6, part 2, subpart B, TSUS?

             LAW AND ANALYSIS:

                  Note 1(iv), schedule 6, part 2, TSUS, excludes from that
             part "(iv) other articles specially provided for elsewhere in
             the tariff schedules, or parts of articles."  The scope of
             this exclusion has been discussed in many judicial opinions.
             See, for example, E.R. Hawthorne & Co, Inc. v. United States,
             730 F.2d 1490 (Fed. Cir. 1984), and cases cited therein.  In
             this case, if the toroids are recognizable as parts of
             transformers, then they are precluded from classification in
             schedule 6, part 2, TSUS, even though they may be unfinished
             at the time of importation.  General Interpretative Rule
             10(h), TSUS.

                  Among the arguments presented by you, the policy
             consideration (intent of the voluntary restraint arrangements
             on steel products) and the substantial transformation issue
             are not relevant to the classification issue challenged by the
             the petitioners.

                  Although cutting to length and winding into a
             specifically layered coil may not constitute high-cost
             processing operations, the resulting article is recognizable
             as an unfinished core for a transformer.  The relevant
             specifications, i.e., the inside circumference, the cross
             sectional area, the location of the joints, and the number of
             sheets, are specific characteristics of the toroids and limit
             the use of the toroids as parts of electrical transformers.
             The toroids have a character and identity that is fixed with
             certainty.  We distinguish these cut and assembled lengths of
             silicon electrical steel from the material lengths, in coil,
             of silicon electrical steel.  In the latter case, there is no
             recognizable article and is precluded from classification as a
             part, even though the material may be dedicated for making the
             individual articles.  Avins Industrial Products Co. v. United
             States, 515 F.2d 782 (CCPA 1975).















                                          - 3 -

             HOLDING:

                  The toroids are unfinished parts of transformers.  We
             affirm our classification set forth in the ruling letter of
             December 23, 1986 (file 077880).

                                          Sincerely,




                                          Harvey B. Fox
                                          Director
                                          Regulations and Rulings




















































































             6cc:  AD NY Seaport
             2cc:  Chief, CIE
             1cc:  Chief, Regulations & Disclosure Law Branch
             1cc:  Director, Trade Ops
             1cc:  AC, CO
             1cc:  Director, ComRulDiv
             1cc:  Director, Agreements Compliance (ITA, Dept. of Commerce)
             1cc:  Reading File

             LIBRARY:   valentin
             FILE NAME: 081550