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HQ 953014


APRIL 12 1993

CLA-2:CO:R:C:M 953014 JAS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8708.39.50, 9905.00.00, HTSUS

District Director of Customs
111 W. Huron Street
Buffalo, NY 14202-2378

RE: Brake Rotor, Unfinished; Blank, GRI 2(a); Goods Originating in the Territory of Canada Intended for Repair or Maintenance of Motor Vehicles; PRD 0901-92-100174

Dear Sir:

This is our decision on Application for Further Review of Protest No. 0901-92-100174, dated January 24, 1992, filed by counsel representing the Aimco Division, ITT Corporation, against your action in liquidating certain entries of brake rotor castings from Canada.

FACTS:

The articles in question are iron brake rotor castings for use in the brake mechanisms of various passenger automobiles. Submitted photographs and drawings depict the article in its condition as imported as a circular steel disc 9.12 inches in diameter with a raised center piece 5.42 inches in diameter and a 2.06 inch center hole. This is their condition as imported. Post-importation processing consists only of rough turning the front and back, drilling either 4 or 5 bolt holes, assembling bearing cups, and finish turning.

The brake rotors were entered under the provision for other brakes and servo-brakes and parts thereof, in subheading 8708.39.50, Harmonized Tariff Schedule of the United States (HTSUS), dutiable at the rate of 2.1 percent ad valorem. Goods provided for in this subheading that originate in the territory of Canada in accordance with general note 3(c)(vii), HTSUS, and are intended for use in the repair or maintenance of motor vehicles of heading 8702, 8703 or 8704, among others, are classifiable free of duty in subheading 9905.00.00, HTSUS.

Counsel notes that the General Rules of Interpretation, as well as the section and chapter notes in chapters 1 through 98, - 2 -
apply to the provisions of chapter 99. Therefore, he contends that the brake rotor castings in issue are unfinished articles under GRI 2(a), eligible for classification in subheading 9905.00.00.

As there was no dispute that the articles in issue were motor vehicle brake components, the entries were liquidated on November 11, 1991, under subheading 8708.39.50. However, the claim under subheading 9905.00.00 was disallowed because, as imported, the brake rotor castings could not be used for the repair or maintenance of motor vehicles. The protest was timely filed on January 22, 1992.

ISSUE:

Whether the brake rotor castings are unfinished articles provided for in subheading 8708.39, HTSUS; whether unfinished articles are eligible for classification in subheading 9905.00.00, HTSUS.

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) provides, in part, that any reference in a heading to an article shall 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.

There is no issue of whether these articles are original motor-vehicle equipment. They are ultimately destined for repair and maintenance applications. The Harmonized Commodity Description And Coding System Explanatory Notes indicate, in relevant part, that the provisions of GRI 2(a) apply to blanks, a term that means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can be used, other than in exceptional cases, for completion into the finished article or part. From submitted photographs and drawings, the final shape and outline of a brake rotor are clearly visible in the imported casting. The circumference of both the casting itself and the raised center piece remain fixed after importation. The only post-importation processing of any consequence consists of drilling bolt holes and assembling bearing cups. We conclude that the rotor castings qualify as blanks for tariff purposes and are unfinished parts of heading 8708. Specifically, they are unfinished articles of - 3 -
subheading 8708.39.50.

The language of subheading 9905.00.00 imposes two requirements: the goods must be provided for in one of the listed headings or subheadings, and they must be intended for use in the repair or maintenance of the designated motor vehicles. We have established that the brake rotor castings are unfinished articles of subheading 8708.39.50, one of the listed subheadings. Because there is no dispute that the articles are motor vehicle brake components, both of the subheading 9905.00.00 requirements are met.

For purposes of clarification, Chapter 99, U.S. Note 2 states in part that the general notes and rules of interpretation apply to the provisions of chapter 99, unless the context requires otherwise. There is no indication that the context here requires otherwise. It necessarily follows that articles considered to be unfinished under GRI 2(a) are among those that can be intended for use in the repair or maintenance of the motor vehicles enumerated in subheading 9905.00.00.

HOLDING:

Under GRI 2(a), the brake rotor castings in issue are unfinished parts and accessories of heading 8708. They are classifiable under the provision for brakes and parts thereof, in subheading 8708.39.50.

Goods provided for in subheading 8708.39 are eligible for duty-free entry under subheading 9905.00.00 upon compliance with the terms of that provision.

The protest should be allowed. A copy of this decision should be attached to the Customs Form 19, and mailed to the protestant, through counsel, as part of the notice of action on the protest.

Sincerely,

John Durant, Director

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