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HQ 087910


December 4, 1990

CLA-2 CO:R:C:G 087910 JMH

CATEGORY: CLASSIFICATION

TARIFF NO.: 692.32, 692.33

District Director
U.S. Customs Service
Patrick V. McNamara Building, Suite 200
477 Michigan Ave.
Detroit, MI 48266

RE: Protest and Request for Further Review No. 3801-9-002050, steel axle shaft forgings

Dear Sir:

The following is our decision regarding the Protest and Request for Further Review No. 3801-9-002050, dated June 14, 1989, submitted by C.J. Tower, Inc. on behalf of Dana Corporation. At issue is the classification under the Tariff Schedules of the United States ("TSUS") of certain steel axle shaft forgings.

FACTS:

The articles are steel axle shaft forgings. The specification on the drawings submitted with the protest state that the forgings must be free from scale. Descaling is performed by sandblasting or shot blasting to remove the oxide which leaves the forging with a clean surface.

Upon entry, the forgings were classified in item 606.71, TSUS, as "Forgings of iron or steel, not machined, not tooled and not otherwise processed after forging...Other than alloy iron or steel..." The importer claims that the forgings should be classified under item 692.32,TSUS, or item 692.33, TSUS, as "Chassis, bodies...and parts of the foregoing motor vehicles... Other..." Item 692.33 would apply if the parts are Canadian articles and are original motor-vehicle equipment.

ISSUE:

Whether the steel axle shaft forgings are forgings of iron or steel under item 606.71, or whether they are parts of automobiles under items 692.32 and 692.33.

LAW AND ANALYSIS:

Headquarters Ruling Letter 069532 ("HQ 069532"), dated August 25, 1982, dealt with the issue of forgings compared with unfinished articles. HQ 069532 states:

Products of a forging process which have not been significantly advanced before importation will be classified under item 606.71, or other applicable forgings provision, even though the products also represent, in their condition as imported unfinished versions of articles, or parts of an article specially provided for elsewhere in the TSUS.

Thus, it is Customs position that unless the forgings have been significantly advanced prior to importation, they are classified as forgings in item 606.71.

Headquarters Ruling Letter 070707 ("HQ 070707"), dated February 14, 1983, states:

...there is sufficient administrative and judicial precedent to support the proposition that descaling either by shot blasting or sandblasting is not incidental to the creation of a forging but a process which occurs after forging.

The steel axle shaft forgings in question are descaled according to the specifications on the drawings submitted with the protest. Descaling has been determined to be a further working of the surface of a forging that occurs after the forging process. It is the opinion of this office that the descaling is a significant advancement. Descaling not only improves the appearance of the forging, but also further works the metal. Since the forgings are "otherwise processed after forging" they cannot be classified in item 606.71. The appropriate classification for the forgings is in items 692.32 or 692.33 as parts of motor vehicles.

HOLDING:

The steel axle shaft forgings imported by Dana Corporation are descaled. This has been determined to be a further working of the surface of a forging that occurs after the forging process. Since the forgings are "otherwise processed after forging" they cannot be classified in item 606.71. The appropriate classification for the forgings is in items 692.32 or 692.33 as parts of motor vehicles.

The protest should be granted in full. A copy of this decision should be attached to the Form 19 Notice of Action for the protest.

Sincerely,

John Durant, Director
Commercial Rulings Division

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