The tariff classification and origin of unfinished rings for ball bearings from unspecified countries

NY L87756 October 20, 2005 CLA-2-84:RR:NC:1:102 L87756 CATEGORY: Classification TARIFF NO.: 8482.99.0500 Mr. David J. Evan Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP 399 Park Avenue (25th Floor) New York, NY 10022-4877 RE: The tariff classification and origin of unfinished rings for ball bearings from unspecified countries Dear Mr. Evan: In your letter dated September 20, 2005 you requested a tariff classification ruling on behalf of your client SNR Bearings USA. The items in question are described as unfinished inner and outer rings for ball bearings. You indicate that the inner and outer rings will be either forged or stamped in one foreign country, Country A, and then shipped to a second foreign country, Country B. In Country B the rings will undergo heat treatment and then exported to the United States where the rings will presumably be finished for use in the assembly of ball bearings. A sample of a ring in its condition after being formed in Country A and a sample of ring in its condition as imported into the United States were submitted. The classification of the unfinished rings under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the tariff headings and any relative section or chapter notes. Heading 8482, HTSUS, provides for ball and roller bearings, and parts thereof. GRI 2(a) extends the scope of heading 8482 to include unfinished parts, provided the unfinished parts have the essential character of the finished parts. Examination of the samples submitted reveals that the unfinished rings are net shape blanks that closely approximate the outline of the finished article they will form. Although the rings may not be to final tolerance and may lack the polished surfaces of finished races, upon importation the unfinished rings possess the unique geometry that makes them readily recognizable as inner and outer rings for ball bearings. Further, the unfinished rings have no other practical use other than for completion into finished rings for ball bearings. We find that the subject rings are unfinished articles that have the essential character of the finished rings and races provided for in HTSUS heading 8482. The applicable subheading for the unfinished rings will be 8482.99.0500, HTSUS, which provides for inner or outer rings or races for ball bearings. The rate of duty will be 9.9 percent ad valorem. Because the rings are formed in Country A and then heat treated in Country B you ask that we confirm that Country A, the country in which the rings are formed, i.e., forged or stamped, is the country of origin of the unfinished rings. Section 134.1(b) of the Customs Regulations defines "country of origin" as the country of manufacture, production, or growth of any article of foreign origin entering the U.S. Further work or material added to an article in another country must effect a substantial transformation in order to render such other country the "country of origin". A substantial transformation occurs when an article loses its separate identity and becomes a new article having a new name, character or use. We find that the origin of the unfinished rings is Country A. In the instant case the unfinished rings do not lose their identity and are not substantially transformed when heat-treated in Country B.      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, National Commodity Specialist Division