HQ 082932: Classification of unfinished automotive brake rotors and drums imported from Canada

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 082932

                                    March 27, 1989


            CLA-2 CO:R:C:G  082932 VEA

            CATEGORY: Classification

            TARIFF NO.: 8708.99.30., 8708.39.50.

            Ms. Beverly J. Nichols, Manager
            Customs, Purchasing and Transportation
            ITT Automotive Parts Supply Division
            Distribution Center
            8085 Production Avenue
            Florence, Kentucky  41042-3046

            RE:  Classification of unfinished automotive brake rotors and
                 drums imported from Canada

            Dear Ms. Nichols:

                   This letter is in response to your request for
            reconsideration of a New York ruling dated July 15, 1988 (File
            # 830906), classifying brake drums and rotors.

            FACTS:

                   The initial request for classification states that the
            merchandise at issue consists of two classes of unfinished
            automotive brake components, rotors and drums.  The parts are
            imported from ITT's Canadian plant to its divisions in the U.S.
            The brake rotors are cast iron and are primarily used on the
            front wheels of vehicles.  The three kinds of rotors include:
            an integral rotor, a disc rotor and a composite disc rotor.
            The integral rotor has its hub and rotor cast as one part.
            These parts also have bearing cups and wheel studs.  The disc
            rotors do not have the hub as an integral part of the rotor.
            They are gray iron casting machined with out wheel studs or
            bearing cups.  Some newer vehicles also utilize a composite
            disc rotor which has a steel stamping as the hat section of the
            rotor.





















                                         - 2 -

                   The second class of automotive brake components, brake
            drums, are also used on the rear of the vehicles and consist of
            fullcast or allcast brake drums.  The fullcast or allcast drum
            is also made of cast iron and is principally used in light
            trucks.  The composite brake drum has a steel welded plate
            molded into the finished drum.  The outside braking surface of
            the drum is cast iron.

                   You submitted a request to classify this merchandise on
            June 24, 1988 to Customs' New York office.  In a letter dated
            July 15, 1988 (File # 830906), New York ruled that the
            merchandise was classified under the provision for brake drums
            and rotors under subheading 8708.39.50 and dutiable at a rate
            of 3.1 percent ad valorem.

                   On October 5, 1988, you submitted a request for
            reconsideration of this ruling.  This letter is in response to
            that request.

            ISSUE:

                   Whether unfinished allcast brake drums and rotors are
            properly classified under subheading 8708.39.50 and dutiable at
            a rate of 3.1 percent ad valorem, or subheading 8708.99.30 and
            subject to a free rate of duty.

            LAW AND ANALYSIS:

                   The General Rules of Interpretation (GRI's) govern
            classification under the Harmonized Tariff Schedules (HTS)
            There are six GRI's.  GRI 1 provides, for legal purposes,
            classification should be determined according to the terms of
            the heading and any relative section or chapter notes.
            According to GRI 1, the primary consideration in classifying
            goods should be given to the language of the heading.

                   There is no dispute as to the applicable heading in this
            case.  Both the importer and the New York office agree that the
            brake parts should be classified under heading 8708 providing
            for parts and accessories of the motor vehicles of headings
            8701 to 8705.  Since the issue in this case involves the proper
            subheading for classification, we look to GRI 6, which states
            that for legal purposes, the classification of goods in the
            subheadings of a heading shall be determined according to the
            terms of the subheadings and any related subheading notes and
            on the understanding that only subheadings at the same level
            are comparable.  Pursuant to GRI 6, as with GRI 1, the primary
            consideration in classifying goods should be given to the
            language of the subheading which must be read in conjunction
            with any relevant notes.












                                         - 3 -

                   The competing subheadings at issue, or as in this case,
            the competing levels of indentation for the subheadings,
            provide:

                   8708      Parts and accessories of the motor vehicles
                             of headings 8701 to 8705:

                             *         *       *       *          *

                                 Brakes and servo-brakes and parts thereof:

                             *         *       *       *          *
                   8708.39             Other:

                             *         *       *       *          *

                                 Other parts and accessories:

                             *         *       *       *          *

                   8708.99             Other

                   Under GRI 6, subheading 8708.39 is the proper subheading
            for classification.  The language of 8708.39 specifically lists
            brake drums and parts thereof, the merchandise at issue.  The
            importer's argument that this merchandise should be classified
            in subheading 8708.99 is incorrect, since under GRI 3(a), a
            subheading in which the language provides the most specific
            description for the merchandise is the preferred subheading for
            classification and, in this case, is not superseded by a
            subheading in which the language of the subheading only
            provides for other parts of vehicles.

                   Although the drums and rotors are imported in an
            unfinished condition, this would not preclude classification
            under subheading 8708.39.  GRI (2)(a) states that any reference
            in a subheading to an article shall be taken to include a
            reference to that article incomplete or unfinished, provided
            that, as presented, the incomplete or unfinished article has
            the essential character of the complete or finished article.

                   Essential character is determined by looking at the
            nature of the material or component and its role in its
            unfinished state to its overall use.  The rotors and drums in
            this case have the shape of the finished products, i.e. rotors
            and drums, but they must undergo a series of finishing
            processes before they can be used as finished products. These
            processes include machining (cutting the excess metal off so
            that the drum or rotor meets the buyer's individual
            specifications), grooving, painting and coating.












                                         - 4 -

                   The fact that this merchandise cannot be used in
            its unfinished condition does not affect our decision to
            classify it under 8708.39.  Under GRI 2 (a), incomplete or
            unfinished articles, which are not ready for direct use, but
            which have the approximate shape or outline of the finished
            article or part, and which can only be used for completion into
            the finished article, are classifed as the completed article.
            The unfinished brake drums and rotors in this case are imported
            in the shape of brake drums and rotors and need only be
            machined to tolerances. Thus, they have the essential character
            of the finished products when they are imported.

            HOLDING:

                   Allcast brake drums and rotors are properly classified
            in subheading 8708.39.50 and are dutiable at a rate of 3.1
            percent ad valorem.

                                     Sincerely,




                                    John Durant, Director
                                    Commercial Rulings Division