HQ 0088883 - Protest number 3004-0-000237; flat-rolled steel rings; Subheading 7225.90.00; Heading 7225; Chapter 72, note 1(f); Chapter 72, note 1(k); Subheading 7225.30; Subheading 7225.40; Subheading 8436.99.00; Subheading 8431.10.00; Explanatory Note 72.25; Subheading Explanatory Notes to Subheading 7225.30 and 7225.40; Subheading Explanatory Notes to Subheading 7225.50; Section XVI, note 2(b); General Rule of Interpretation 2(a); General Rule of Interpretation 2(a), Explanatory Note (II). - United States International Trade Commision Rulings

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HQ 088883

July 8, 1991

CLA-2 CO:R:C:M 088883 AJS

CATEGORY: CLASSIFICATION

TARIFF NO.: 7225.90.00

District Director
U.S. Customs Service
Port of Seattle
909 First Avenue
Room 2039
Seattle, WA 98174

RE: Protest number 3004-0-000237; flat-rolled steel rings; Subheading 7225.90.00; Heading 7225; Chapter 72, note 1(f); Chapter 72, note 1(k); Subheading 7225.30; Subheading 7225.40; Subheading 8436.99.00; Subheading 8431.10.00; Explanatory Note 72.25; Subheading Explanatory Notes to Subheading 7225.30 and 7225.40; Subheading Explanatory Notes to Subheading 7225.50; Section XVI, note 2(b); General Rule of Interpretation 2(a); General Rule of Interpretation 2(a), Explanatory Note (II).

Dear District Director:

Protest for further review number 3004-0-000237 dated 8/01/90, was filed against the classification of flat-rolled steel rings within subheading 7225.90.00, Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

The articles under protest are flat-rolled steel rings. They are made from steel plate conforming to ASTM Specification A-514, the standard specification for high-yield strength, quenched and tempered alloy steel plate, suitable for welding. Prior to importation, the plates are cut into circular shapes and a hole is cut in the center of the circles. These rings measure 2 1/2 inches in thickness, 34 1/2 inches, 40 1/2 inches or 42 inches in outside diameter, and 5 inches or 8 inches in inside diameter.

When finally finished, the subject rings are used in portable yarders as sides for a drum or spool. The rings are
welded to a core or piece of pipe to make a spool or winch drum. This drum is used to spool wire rope. The rings are described as "burned out", and are not complete or finished in their imported condition. After importation, the inside and outside diameters of the "burned out" rings are machined in a vertical turret lathe (VTL). The VTL also machines the surface of the ring from a 2 1/2 inch thickness to different thicknesses ranging from 2 to 1 5/8 inches. The I.D. is also beveled in the VTL for weld preparation. The machined rings are then welded to a core, after which the spools are returned to the VTL for finish machining.

ISSUE:

Whether the subject rings are properly classifiable within subheading 7225.90.00, HTSUSA, which provides for "[f]lat-rolled products of other alloy steel, of a width of 600 mm or more: [o]ther."; or classifiable within subheading 8436.99.00, HTSUSA, which provides for other parts of agricultural, horticultural, forestry, poultry-keeping or bee-keeping machinery; or classifiable within subheading 8431.10.00, HTSUSA, which provides for parts suitable for use solely or principally with the machinery of heading 8425.

LAW AND ANALYSIS:

Heading 7225, HTSUSA, provides for "[f]lat-rolled products of other alloy steel, of a width of 600 mm or more." The subject articles are flat-rolled alloy steel rings. The flat-rolled products of this heading may be of a shape other than rectangle or square and they may be perforated. Chapter 72, note 1(k). The term "other alloy steel" refers to "[s]teel not complying with the definition of stainless steel and containing by weight one or more of the following elements in the proportion shown: . . . 0.08 percent or more of molybdenum . . ." Chapter 72, note 1(f). The subject steel rings possess a high molybdenum content which satisfies this requirement. Flat-rolled products of a shape other than rectangular or square, of any size, are to be classified as products of a width of 600 mm or more, provided that they do not assume the character of articles or products of other headings. Chapter 72, note 1(k). The subject rings are of a circular shape and are not an unfinished article of another heading. Accordingly, the subject steel rings satisfy the terms of heading 7225, HTSUSA, and are classifiable therein.

Subheadings 7225.30 and 7225.40, HTSUSA, provide for flat- rolled products not further worked than hot-rolled. The provisions of the Explanatory Notes (ENs) to headings 72.08 to 72.18 apply, mutatis mutandis, to the products of heading 7225, HTSUSA. EN 72.25. The subject products are cut or stamped into
a circular shape and perforated. This type of working is not of the kind allowed for hot-rolled products. Subheading ENs to Subheading 7225.30 and 7225.40 (See Subheading ENs to Subheading 7208.11 through 7208.45). Accordingly, the subject products are further worked than hot rolled and not classifiable within either of the above subheadings. Subheading 7225.50, HTSUSA, provides for flat-rolled products not further worked than cold rolled. For the same reason as stated above, the subject products are also further worked than cold rolled and excluded from this subheading. Subheading ENs to Subheading 7225.50 (See Subheading ENs to Subheading 7209.11 through 7209.44). Subheading 7225.90.00, HTSUSA, provides for other flat-rolled products of other alloy steel, of a width of 600 mm or more. The subject products satisfy this description and are classifiable within this subheading.

Subheading 8431.10.00, HTSUSA, provides for parts suitable for use solely or principally with the machinery of heading 8425 (i.e, pulley tackle and hoists other than skip hoists, winches and capstans, jacks). The subject steel rings will be used as sides of winch drums. Based on this statement, the protestant claims that the rings are classifiable as a part of a winch drum within the above subheading. However, the subject rings are flat-rolled products of alloy steel which do not possess the essential character of a finished winch drum side. They do not satisfy the terms of this subheading. Therefore, they are not properly classifiable as a part of a winch drum within subheading 8431.10.00, HTSUSA.

General Rule of Interpretation (GRI) 2(a) states that "[a]ny reference in a heading 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." The subject rings do not satisfy the description of an "unfinished" article. The subject articles are described as "burned out" rings which indicates that they have been merely torch cut from steel plate. Although the steel rings appear to have the general shape of a finished drum side, they require a considerable amount of further working by machining to convert them into finished articles. After importation, the inside and outside diameter of the "burned out" rings are machined in a VTL. The VTL also machines the surface of the ring to a different thickness. In addition, the inside diameter of the ring is beveled in the VTL for weld preparation. The machined rings are then welded to a core, after which the spools are returned to the VTL for finish machining. This further working supports the conclusion that the rings do not have the essential character of finished winch drum sides. Therefore, the subject rings also cannot be considered "unfinished" parts of these winch drums.

The provisions of GRI 2(a) also apply to blanks. GRI 2(a) EN (II). 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. GRI 2(a) EN (II). The subject steel rings do not satisfy this description. They can be used for completion into other articles, such as bed plates and gears. Thus, the subject rings additionally cannot be considered a blank within the meaning of GRI 2.

Subheading 8436.99.00, HTSUSA, provides for other parts of other agricultural, horticultural, forestry or bee-keeping machinery. The protestant alternatively claims that the subject steel rings are classifiable within this subheading. However, the subject rings do not satisfy the terms of heading 8436, HTSUSA. This heading does not cover hoisting, handling or conveying equipment of headings 8425, 8426 or 8428, HTSUSA. EN 84.36(d). Therefore, heading 8436 also does not cover parts of this equipment. The subject rings are used with portable yarders, which are classifiable within heading 8425, HTSUSA. Accordingly, the subject rings are not properly classifiable within subheading 8436.99.00, HTSUSA.

HOLDING:

The subject flat-rolled steel rings are properly classifiable within subheading 7225.90.00, HTSUSA, which provides for other flat-rolled steel products of other alloy steel, of a width of 600 mm or more. You should deny the protest in full. A copy of this decision should be attached to the Customs Form 19 Notice of Action and forwarded to the protestant.

Sincerely,

John Durant, Director
Commercial Rulings Division

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