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HQ 089939


November 14, 1991

CLA-2 CO:R:C:M 089939 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8481.80.90

Mr. Bruce E. Himmelreich
Cooper Industries
P.O. Box 4446
Houston, Texas 77210

RE: Ball Valve Subassemblies; Unfinished; Valve; Structure; Hand Operated; Principal Use; GRI 2(a); GRI 3(c); Cooper Industries

Dear Mr. Himmelreich:

This is in reply to your letter of July 17, 1991, on behalf of Cooper Industries, requesting classification of "Ball Valve Subassemblies," imported from France, Scotland, Mexico and Italy, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA).

FACTS:

The Oil Tool Division of Cooper Industries ("Cooper") is in the business of manufacturing and marketing a variety of valve products, primarily for use in the oil and gas industry. Cooper imports a series of ball valve subassemblies. The subassemblies are used in the manufacture of ball valves in sizes from 8" in diameter to 42" in diameter. These ball valves are used in pipelines for the transmission of oil, gas, and other products. They act to control the flow of material within the pipeline. The valve functions by means of a hollowed out ball mechanism in its center. When the hollow core of the ball is aligned with the pipe, material is able to pass through the valve. However, when the ball is rotated within the valve so that its solid surface faces the pipe connection, the pipe is sealed.

Cooper imports the subassemblies in various stages of completion. The submitted literature depicts the imported subassemblies as consisting of a forged body and ball. After importation, Cooper undertakes the following operations: milling, grinding, machining, coating, testing, welding, and assembly operations.

At the time of importation, it is not known what type of actuator will be applied. The valves are placed in storage awaiting a customer order, which will specify the type of operator to be utilized.

ISSUE:

What is the classification of ball valve subassemblies, under the Harmonized Tariff Schedule of the United States Annotated

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...

You state that: "[o]n 20" valves adapted with a hand operator, it would take 190 turns and approximately 20 minutes of physical effort to accomplish an opening or closing of the valve. A 30" valve would require 297 turns or 30 minutes of physical exertion. For this reason, hand operation is impractical for most foreseeable uses of a large diameter ball valve." Further, you state that: "[b]oth the sales data and the inherent nature of the product indicate that the principal use of the valve subassemblies 20" and larger is and must continue to be as power operated products." We agree that, in light of the sales data and difficulty of hand operation of these 20" and larger ball valves, that they are principally actuated by other means than hand operation. GRI 2(a) states, in pertinent part:

Any 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....

At importation, the 20" and larger unfinished ball valves have the essential character of finished, principally power actuated, ball valves, and as such are classifiable under subheading 8481.80.90, HTSUSA, which provides for: "[t]aps, cocks, valves and similar appliances...: [o]ther appliances: [o]ther."

In contrast, however, at importation there is no reliable indication regarding whether the unfinished 2" through 18" ball valves are principally actuated by hand, or by other means. Therefore, they are prima facie classifiable under the following subheadings:

8481.80.30 Taps, cocks, valves and similar appliances...: Other appliances: Hand operated: Of iron or steel.

8481.80.90 Taps, cocks, valves and similar appliances...:

Other appliances: Other

In their condition as imported, the 2" through 18" ball valves are not "finished" "hand operated" valves since they lack the means of actuation and are not principally operated by one method. Again, GRI 2(a) provides guidance here. It states, in pertinent part:

Any 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....

However, as presented, the 2" through 18" ball valves do not have the essential character of "hand operated" valves. Upon importation, there is no indication as to the method of operation, nor is there any reliable data as to the principal function. In fact, smaller valves are frequently power actuated in process control systems, and for emergency situations.

Therefore, in the absence of consistent, reliable information as to the method of operation, the 2" through 18" unfinished ball valves are classifiable under subheading 8481.80.90, HTSUSA, which provides for: "[t]aps, cocks, valves and similar appliances...: [o]ther appliances: [o]ther."

If, however, it becomes clear that the 2" through 18" ball valves are principally "hand operated" or dedicated to hand operation, they would be properly classifiable under subheading 8481.80.30, HTSUSA, which provides for hand operated valves of steel. See HQ 950064 for a similar holding regarding similar merchandise.

HOLDING:

The 20" and larger unfinished ball valves have the essential character of finished, principally power actuated, ball valves, and as such are classifiable under subheading 8481.80.90, HTSUSA, which provides for: "[t]aps, cocks, valves and similar appliances...: [o]ther appliances: [o]ther." The rate of duty is 3.7 percent ad valorem.

The 2" through 18" unfinished ball valves are classifiable under subheading 8481.80.90, HTSUSA, which provides for: "[t]aps, cocks, valves and similar appliances...: [o]ther appliances: [o]ther." The rate of duty is 3.7 percent ad valorem.

Sincerely,

John Durant, Director

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