HQ 083052

April 21, 1989

CLA‑2 CO:R:C:G 083052 APS

Category: Classification

Tariff No.: 732.41 732.42 807.00 912.10

8714.96.5000 8714.96.9000

9802.80.00 9902.87.14

District Director of Customs

U.S. Customs Service

880 Front Street, Rm. 5‑S‑9

San Diego, California 92188

Re: Internal advice request No. 34/88 concerning the tariff
classification, marking and allowance for American parts of crank sets
for bicycles.

Dear Sir:

This request for internal advice was filed on behalf of Assemble In
Mexico, Inc., in your undated memorandum which was forwarded to
Headquarters on October 26, 1988.

FACTS:

The imported article will be used as parts of a crank set for bicycles.
A crank arm blank will be imported into Mexico from Japan. The crank arm
blank is a tubular article approxi‑

mately 8 inches long with a 1 inch x 1/2 inch cross section. Each end of
the blank has an open circular cut out across the cross section. There
is also a smaller cut out circle near one

end of the blank.

Three tubular pieces which are to be fitted into the three cut out
places will be imported into Mexico from the United States. These pieces
are named the sprocket drive boss, the

right pedal boss and the spindle boss.

The American made bosses will be welded into the three cut out circles
in Mexico. We understand the operation in Mexico is a TIG or ARC welding
process which requires only basic welding skills. This is the only
operation which is performed in Mexico.

Upon importation into the United States, a pinch arm is welded to the
end of the crank containing the spindle boss, six splines are machined
on the inner surface of the spindle boss and

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the boss and pinch arm are split to leave a 1/16inch opening. The crank
is then cleaned and chrome plated.

The crank is used in the construction of a bicycle. The pedal is torqued
into the pedal boss, the sprocket drive boss is torqued onto the chain
sprocket and the spline spindle boss is

placed on the crank spindle. A so called pinch arm bolt is inserted into
the pinch arm to \"snug up\" the crank on the spindle.

ISSUE:

Is the crank arm part of a cotterless crank set? If it is,
classification will be under item 732.41, Tariff Schedules of the United
States (TSUS) and subheading 8714.96.5000, Harmonized Tariff Schedules
of the United States Annotated (HTSUSA). If not

part of a cotterless crank set, classification will be as other parts of
bicycles under item 732.42, TSUS, or as other crank gear parts under
subheading 8714.96.9000, HTSUSA.

Other issues raised are whether there is an allowance for the American
made parts under item 807.00, TSUS (subheading 9802.00.80, HTSUSA) and
whether the part must be marked.

LAW AND ANALYSIS:

The article imported into the United States is an unfinished crank arm
and classifiable as a part by reason of General Headnote 10(h), TSUS,
and General Rule of Interpretation 2(a),

HTSUSA.

A cotter is defined as follows in Webster\'s Third New International
Dictionary, Unabridged (1986):

1a: a wedge‑shaped or tapered piece

used to fasten together parts of a

machine or structure by being driven

into a tapered opening through one

or all the parts \*\*\*

The Random House Dictionary of the English Language, The Unabridged
Edition (1973) defines a cotter as:

1\. a pin, wedge, key or the like,

fitted or driven into an opening

to secure something or hold parts

together.

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HOLDING:

It is our position that the so called pinch‑bolt fits very comfortably
within these definitions. In fact, the diagram of a cotter in use in
Webster\'s shows an application remarkably

similar to the one under consideration. Thus, we find that the crank is
not a cotterless crank.

Furthermore, even if it is found for some reason that the pinch bolt is
not a cotter we still maintain that the crank is not a cotterless crank.
In Headquarters letter 069847 dated

June 11, 1982, IA 49/82 circulated as C.I.E. N‑36/75 the interpretation
of \"cotterless type crank sets\" was fully discussed. It was held that
the term \"cotterless\" was not used in the common sense of \"absence of
a cotter\" but in a commercial sense and \"cotterless\" referred to the
attachment of the crank to the axle piece by mounting bolts and crank
arm caps.

OTHER ISSUES RAISED

In order to receive an allowance for the American bosses, they must
retain their identity and be subjected to a simple assembly. An
examination of the sample showing the article as

imported into the United States shows that the bosses have retained
their identity. We understand that the welding process is a simple
process requiring a minimum of skills which does not change the
composition of the welded material. We find that an allowance should be
made for the American components.

Regarding the marking issue, Section 304 of the Tariff Act of 1930, as
amended (19 U.S.C. 1304), provides that every article of foreign origin
(or its container) imported into the United States shall be marked in a
conspicuous place as legibly, indelibly and permanently as the nature of
the article (or container) will permit, in such a manner as to indicate
to the ultimate purchaser in the United States States the English name
of the country of origin of the article.

Section 134.35, Customs Regulations (19 CFR 134.35), provides that an
article used in the U.S. in manufacture which results in an article
having a name, character, or use differing

from that of the imported article will be considered substantially
transformed, and therefore the manufacturer or processor in the U.S. who
converts or combines the imported article into

the different article will be considered the ultimate purchaser of the
imported article within the contemplation of 19 U.S.C. 1304(a).
Accordingly, the article shall be excepted from

marking. However, in accordance with 19 U.S.C. 1304(b) and {134.22,
Customs Regulations (19 CFR 134.22), the outermost container of the
imported article shall be marked to indicate

the country of origin of the article.

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A prior Customs ruling determined that imported ratchet wrench handles
were substantially transformed by further machining in the U.S. In that
instance the machining referred to broaching, [i.e.]{.underline},
cutting teeth into the recessed core opening, plus some additional
finishing. Also, a core mechanism was assembled into the core opening in
the U.S. Although several things were done to the imported handles, the
ruling singles out the broaching process as of particular significance
and mentions the specialized machinery and skill required (721562 HL,

October 17, 1988). See also 723271 HL, February 3, 1984, imported plier
forgings are substantially transformed by the broaching of teeth and
additional finishing operations performed

in the U.S.

It is our opinion that the broaching of teeth into the spline boss,
coupled with the additional welding to attach the pinch arm performed in
the U.S. constitutes a substantial trans‑

formation of the imported crank assembly. Accordingly, the crank
assemblies are excepted from individual marking under 19 U.S.C.
1304(a)(3)(D) provided that the assemblies will reach the

ultimate purchaser in properly marked outer containers.

Sincerely,

John Durant, Director

Commercial Rulings Division