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