HQ 956210

AUGUST 11, 1994

CLA-2:CO:R:C:M 956210 JAS

CATEGORY: Classification

TARIFF NO.: 7208.90.00

District Director of Customs

Patrick V. McNamara Bldg.

477 Michigan Ave.

Detroit, MI 48266

RE: PRD 3801-94-100473; Circular Steel Shapes; Steel Circles

Cut From Sheet; Flat-Rolled Product, Heading 7208;

Automotive Torque Converter (Transmission) Covers, Other

Parts of Motor Vehicles, Subheading 8708.99.50; Fabricated

Components, Original Motor-Vehicle Equipment, Automotive

Products Trade Act (APTA); Blank, GRI 2(a)

Dear Sir:

This is our decision on Protest No. 3801-94-100473, filed on

behalf of Kasle Steel of Canada Ltd., against your decision in

classifying certain steel circles. The entries were liquidated

on October 22 and 29, 1993, and this protest timely filed on

January 20, 1994.

FACTS:

The merchandise is steel circles or blanks for the front

cover of an automobile torque converter or transmission. The

circles, each measuring 14.185 inches plus or minus 0.010 inch,

are die cut from 6-gauge hot rolled SAE grade 1015 steel sheet,

0.189-0.20 inch thick. There are four (4) raised square

extrusions called oil breakers or oil seal breakers, flaring to a

height of 0.02 inch at the outer edge, evenly spaced around the

circumference of each circle. After importation, the circles are

fed from a conveyor into a machine press which, according to

protestant, performs a number of pressing and stamping operations

which form the circles into a finished torque converter cover.

The post-importation processing is not further described. The

oil seal breakers function only to keep the circles from sticking

together and insure they are not double-fed into the machine

press which would jam the machine. The oil seal breakers have no

purpose relative to a finished torque converter cover.

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Protestant maintains that, as imported, the steel circles or

blanks qualify as fabricated components intended for use as

original motor-vehicle equipment. As such, they were entered

under an appropriate provision for parts and accessories of motor

vehicles which would qualify them for free entry under the

Automotive Products Trade Act of 1965, as amended (APTA). The

claim is that the blanks are physically recognizable as

automotive components in an unfinished state because to recut a

14-inch steel circle for any use other than as intended at

importation would not be commercially feasible.

It was determined that the blanks are not limited by their

shape to a particular use or uses, are not physically

recognizable as automotive components, and bear virtually no

resemblance to the part they will eventually become.

Accordingly, it was determined that, as imported, they qualify as

flat-rolled products of heading 7208, Harmonized Tariff Schedule

of the United States (HTSUS).

The provisions under consideration are as follows:

7208 Flat-rolled products of iron or nonalloy

steel, of a width of 600 mm or more, hot-

rolled, not clad, plated or coated:

7208.90.00 Other\...5 percent

\* \* \* \* \*

8708 Parts and accessories of the motor vehicles

of headings 8701 to 8705:

Other parts and accessories:

8708.99.50 Other\...3.1 percent but Free under APTA

ISSUE:

Whether the steel circles, as imported, are blanks under GRI

2(a), HTSUS, and therefore unfinished articles for tariff

purposes.

LAW AND ANALYSIS:

Merchandise is classifiable under the Harmonized Tariff

Schedule of the United States (HTSUS) in accordance with the

General Rules of Interpretation (GRIs). GRI 1 states in part

that for legal purposes, classification shall be determined

according to the terms of the headings and any relative section

or chapter notes, and provided the headings or notes do not

require otherwise, according to GRIs 2 through 6. GRI 2(a),

HTSUS, states in part that any reference in a heading to an

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article shall be taken to include a reference to that article

incomplete or unfinished, provided that, as entered,

the incomplete or unfinished article has the essential character

of the complete or finished article.

The Harmonized Commodity Description And Coding System

Explanatory Notes (ENs) constitute the Customs Cooperation

Council\'s official interpretation of the Harmonized System.

While not legally binding on the contracting parties, and

therefore not dispositive, the ENs provide a commentary on the

scope of each heading of the Harmonized System and are thus

useful in ascertaining the classification of merchandise under

the System. Customs believes the notes should always be

consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23,

1989).

Flat-rolled products of heading 7208 are rolled products of

solid rectangular (other than square) cross section, which are

not semifinished products for tariff purposes. This heading

includes flat-rolled products of a shape other than rectangular

or square, of any size, provided they do not assume the character

of articles of other headings. Therefore, circular articles are
encompassed by heading 7208, if

otherwise qualified.

The provisions of Rule 2(a) apply to the imported

merchandise if they qualify as blanks. The ENs to GRI 2(a)

provide specific guidance on the application of the rule to

articles referred to as \"blanks.\" EN (II) to the GRI states on

p\. 2:

\(II\) The provisions of this rule also apply to

blanks unless these are specified in a

particular heading. The term \"blank\" means

an article, not ready for direct use,

having the approximate shape or outline of

the finished article or part, and which can

only be used, other than in exceptional

cases, for completion into the finished

article or part.

Semi-manufactures not yet having the

essential shape of the finished articles

(such as is generally the case with bars,

discs, tubes, etc.) are not regarded as

\"blanks.\"

The ENs address two criteria for articles which are \"blanks\"

for GRI 2(a) purposes: approximate shape or outline and sole use

for completion into the finished article or part.

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The protestant contends that the precise external

specifications of the wheel blanks is an indication that they

will be used principally, if not solely, for completion into

automotive torque converter covers. However, as imported, these

articles are merely shapes that may be used to make a variety of

articles for which SAE grade 1015 steel is suitable. It is only

after each steel circle is subjected to a series of post-

importation processing operations, which protestant does not

describe, that the shape or outline of the finished torque

converter cover can be seen.

As imported, therefore, these steel shapes, circles or discs

have neither the form nor the shape nor any visually apparent

characteristic of the specific part or component they will be

when finished. These discs are semi-manufactures the equivalent

of bars, discs, tubes, etc., which the ENs indicate are not

\"blanks\" for tariff purposes.

HOLDING:

The circular steel shapes in issue are not blanks for tariff

purposes and, therefore, not unfinished articles of heading 8708.

Under the authority of GRI 1, these articles are provided

for in heading 7208. They are classifiable in subheading

7208.90.00, HTSUS.

The protest should be DENIED. In accordance with Section

3A(11)(b) of Customs Directive 099 3550-065, dated August 4,

1993, Subject: Revised Protest Directive, you should mail this

decision, together with the Customs Form 19, to the protestant no

later than 60 days from the date of this letter. Any

reliquidation of the entry or entries in accordance with the

decision must be accomplished prior to mailing the decision.

Sixty days from the date of the decision the Office of

Regulations and Rulings will take steps to make the decision

available to Customs personnel via the Customs Rulings Module in

ACS and to the public via the Diskette Subscription Service, the

Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director

Commercial Rulings Division