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NY M85662




September 26, 2006

CLA-2-84:RR:NC:1:102 M85662

CATEGORY: CLASSIFICATION

TARIFF NO.: 9802.00.60

Mr. Ritchie T. Thomas
Squire, Sanders & Dempsey LLP
1201 Pennsylvania Avenue, N.W.
P.O. Box 407
Washington, D.C. 20044-0407

RE: Applicability of subheading 9802.00.60, HTSUS, to machined and heat-treated cups and cones for tapered roller bearings processed in India.

Dear Mr. Thomas:

In your letter dated August 3, 2006 you requested a tariff classification ruling on behalf of your client the Timken Company of Canton, Ohio. You specifically ask about the applicability of subheading 9802.00.60, Harmonized Tariff Schedule of the United States (HTSUS), to cups and cones for tapered roller bearings processed in India. Photographs, drawings, and a detailed description of the articles in question and the processes to which they are subjected were submitted.

Timken plans to manufacture the Timken Railroad Bearing in the United States using cups and cones that will be machined and heat treated in the United States and then exported to India as heat treated stock to be ground to appropriate dimensions and substrate surface finish, and for application of an anticorrosion phosphate coating. The ground and coated cups and cones will be imported from India to undergo final machining in the United States by Timken, and then, along with other bearing components, including rollers, cages, end caps, backing rings, lock plates, cap screws and spacers, will be assembled by Timken into tapered roller bearings.

Subheading 9802.00.60, HTSUS, provides a partial duty exemption for certain metal articles that are manufactured or subjected to a process of manufacture in the United States, exported for further processing, and returned for further processing in the United States. Under subheading 9802.00.60, HTSUS, duty is assessed only on the cost or value of the foreign processing, provided the documentary requirements of 19 C.F.R. § 10.9 are satisfied.

Subheading 9802.00.60 imposes a dual "further processing" requirement on qualifying metal articles: one foreign, and when returned, one domestic. In this case, the cups and cones that will be machined and heat-treated in the United States. However, the cups and cones must also satisfy the dual processing requirement. In India, the heat-treated cups and cones will be ground to appropriate dimensions and substrate surface finish. In addition, an anticorrosion phosphate coating will be applied. Consequently, we find that the machining performed in India constitutes sufficient "further processing" to satisfy the initial processing requirement of subheading 9802.00.60, HTSUS.

After they are returned to the United States the ground and coated cups and cones will undergo final machining. Then the cups and cones, along with other bearing components, including rollers, cages, end caps, backing rings, lock plates, cap screws and spacers, will be assembled by Timken into tapered roller bearings.

We find that this further processing on the cups and cones in the United States constitutes further processing as required under 9802.00.60, HTSUS. Based on the facts presented, cups and cones returned from India to the United States qualify for the partial duty exemption under subheading 9802.00.60, HTSUS, provided the documentary requirements set forth at 19 C.F.R. § 10.9 are satisfied.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Kenneth T. Brock at 646-733-3009.

Sincerely,

Robert B. Swierupski
Director,

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