HQ 0088325 - Low-Fric Bars for Low-Fric Impact Sections; Rubber; Conveyor Installation and Roller Systems; GRI 3(b); Composite Good; Essential Character; Set - United States International Trade Commision Rulings

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HQ 088325

March 27, 1991

CLA-2 CO:R:C:M 088325 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 4016.99.50

Mr. William R. Chapman
P.O. Box 8830
Main Terminal
Ottawa, Ontario
K1G 3J2

RE: Low-Fric Bars for Low-Fric Impact Sections; Rubber; Conveyor Installation and Roller Systems; GRI 3(b); Composite Good; Essential Character; Set

Dear Mr. Chapman:

This is in reply to your letter of November 7, 1990, on behalf of SKEGA LIMITED, requesting classification of Low-Fric Bars for Low-Fric Impact Sections, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

The merchandise at issue is Low-Fric Bars. These bars are utilized in the construction of conveyor installations and roller systems. They are primarily constructed of rubber, to absorb impact, but they have a polyethylene layer on the surface to reduce friction (i.e., "Low-Fric"). Two designs are available. The first is called the "Reinforced Design" because it has a molded internal aluminum reinforcement. The second is called the "Loose Clamp Design" and has no internal reinforcement because it is designed for use in the coal industry and other corrosive situations where aluminum is not allowed or is not suitable.

ISSUE:

What is the classification of "Low-Fric Bars" of rubber for conveyor and roller systems, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA)?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUSA govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part:

...classification shall be determined according to the terms of the headings and any relative section or chapter notes...

Section XVI provides for machinery and mechanical appliances. However, the Legal Notes to Section XVI state:

1. This section does not cover:

(a) Transmission, conveyor or elevator belts or belting, of plastics of chapter 39, or of vulcanized rubber (heading 4010); or other articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses, of vulcanized rubber other than hard rubber (heading 4016); (Emphasis added).

Low-Fric Bars ("Bars") are composed of shock absorbent vulcanized rubber, low-friction polyethylene, and rigid aluminum (in one model). GRI 3(b) provides direction for the classification of composite goods. The rule states, in pertinent part:

Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character...

The Harmonized Commodity Description and Coding System Explanatory Notes (EN) to GRI 3(b) state:

(VIII) The factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods.

In the instant case, the rubber provides the predominant bulk, weight, and perhaps value. We also find the role of the rubber to be primary in terms of its support and shock absorption features. Therefore, the essential character of the Bars is determined to be imparted by the rubber.

The Low-Fric Bars are imported with screws, washers, and nuts, for installation. Thus, classification of these articles must be addressed. GRI 3(b) also provides direction for the classification of goods put up in sets for retail sale. The rule states, in pertinent part:

Goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character...

The EN for GRI 3(b), page 4, states:

(X) For the purposes of this Rule, the term "goods put up in sets for retail sale" shall be taken to mean goods which:

(a) consist of at least two different articles which are, prima facie, classifiable in different headings...;

(b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and

(c) are put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards).

The Low-Fric Bars and installation hardware meet requirements 1-3 for sets because they: (1) consist of at least two different articles; (2) which are classifiable in different headings; (3) consist of articles put up together to carry out a specific activity. However, it is not clear whether "the articles are put up in a manner suitable for sale directly to users without repacking." If the instant merchandise meets this requirement, then the whole is classifiable under subheading 4016.99.50, HTSUSA, which provides for: "Other articles of vulcanized rubber other than hard rubber: Other: Other: Other: Other." Otherwise, the screws, washers, and nuts would be classified separately.

Classification has been suggested under heading 4008, HTSUSA, which provides for: "Plates, sheets, strip, rods and profile shapes, of vulcanized rubber other than hard rubber." However, the Legal Notes to Chapter 40 state:

9. In headings 4001, 4002, 4003, 4005 and 4008, the expressions "plates", "sheets" and "strip" apply only to plates, sheets and strip, and to blocks of regular geometric shape, uncut or simply cut to rectangular (including square) shape, whether or not having the
character of articles and whether or not printed or otherwise surface-worked, but not otherwise cut to shape or further worked.

In heading 4008 the expressions "rods" and "profile shapes" apply only to such products, whether or not cut to length or surface-worked but not otherwise worked. (Emphasis added).

Clearly, the instant merchandise has been "further worked" since it has polyethylene adhered to it, aluminum inserted into it, and has been grooved for mounting.

HOLDING:

The Low-Fric Bars for conveyor and roller systems, having the essential character of rubber, are classifiable under subheading 4016.99.50, HTSUSA, which provides for: "Other articles of vulcanized rubber other than hard rubber: Other: Other: Other: Other." The rate of duty is 3.7 percent ad valorem, if the requirements of the U.S.-Canada Free Trade Agreement are met.

The screws, washers, and nuts imported with the Low-Fric Bars would be classified with the Bars if they are "put up in a manner suitable for sale directly to users without repacking (e.g., in boxes or cases or on boards)." However, if they are not packaged as a set, the screws, washers and nuts would be classifiable separately.

Sincerely,

John Durant, Director

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