HQ 954643: PRD 3801-92-103604; Circular Steel Blanks, Unfinished Torque Converter Covers, Subheading 8708.99.50; Unfinished Automobile Parts, GRI 2(a); Steel Circles, Articles of Iron or Steel, Heading 7326, Specificity, GRI 3(a); Fabricated Components, Automotive Products Trade Act of 1965; Flat- Rolled Products of Iron or Nonalloy Steel; HQ 087047, HQ 951994

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                

                            HQ 954643

                            OCTOBER 21 1993

CLA-2:CO:R:C:M    954643 JAS

CATEGORY:   Classification

TARIFF NO.: 7208.90.00

District Director of Customs
Patrick V. McNamara Bldg.
477 Michigan Ave.
Detroit, MI 48226

RE:  PRD 3801-92-103604; Circular Steel Blanks, Unfinished 
     Torque Converter Covers, Subheading 8708.99.50; Unfinished
     Automobile Parts, GRI 2(a); Steel Circles, Articles of Iron
     or Steel, Heading 7326, Specificity, GRI 3(a); Fabricated
     Components, Automotive Products Trade Act of 1965; Flat-   
     Rolled Products of Iron or Nonalloy Steel; HQ 087047, HQ
     951994

Dear Sir:

     This is our decision on Application for Further Review of
Protest 3801-92-103604, filed by the broker representing Kasle
Steel, against your action in classifying certain circular steel
discs or blanks from Canada.  The entries were liquidated on
September 4, 18 and 25, and on October 2, 9, 16 and 23, 1992. 
This protest was timely filed on November 27, 1992.

FACTS:

     Protestant refers to the merchandise as configured steel
blanks that will be fabricated into front covers for torque
converters, i.e., automotive transmissions.  They are circular
shapes with diameters of 14.185 inches, plus or minus 0.010 inch,
cut from 6-gauge, 0.189 to 0.20 inch thick hot rolled steel
sheet.  Customer specifications require four (4) equally spaced
square extrusions on the outer edge of each circle.  Each
extrusion, called an oil breaker, measures 0.12 inch on a side
and flares from the surface of the circle to a height of 0.02
inch at the outer edge.  These keep the circles from sticking
together and prevent double-blanking in the press machine which
could damage the circles or jam the machine.  A coil
identification number is stenciled on each circle.  After
delivery to the customer, the circles move from a conveyor to a
machine press that subjects them to what protestant describes as
a "variety of pressing and stamping operations" that convert them - 2 -

into torque converter covers.  The post-importation processing
is not further described.  The finished articles are intended for
installation in new automobiles.
     
     The steel circles were entered under subheading 8708.99.50,
Harmonized Tariff Schedule of the United States (HTSUS), as other
parts and accessories of the motor vehicles of headings 8701 to
8705.  Protestant maintains that the steel circles are entitled
to free entry under this provision because they are Canadian
articles that are fabricated components intended for use as
original motor-vehicle equipment under the Automotive Products
Trade Act of 1965, as amended (APTA).  He argues that the precise
dimensional tolerances advance these circles beyond the stage of
mere materials; the oil breaker extrusions clearly establish the
identity of the stamped circles as unfinished components and make
them commercially unusable for anything other than torque
converter covers.  Based on decisions on similar merchandise
under the HTSUS as well as the Tariff Schedules of the United
States (TSUS), you liquidated the entries under the provision for
flat-rolled products of iron or nonalloy steel, in subheading
7208.90.00, HTSUS.    

     The provisions under consideration are as follows:

     7208.90.00     Flat-rolled products of iron or nonalloy
                    steel, of a width of 600 mm or more, hot-
                    rolled, not clad, plated or coated: 
                    Other...5 percent

          *         *         *          *          *

     7326.19.00     Other articles of iron or steel: Forged
                    or stamped, but not further worked: 
                    Other...5.7 percent/free under APTA

          *         *         *          *          *

     8708.99.50     Parts and accessories of the motor vehicles 
                    of headings 8701 to 8705: Other parts and
                    accessories: Other: Other...3.1 percent/free
                    under APTA

ISSUE:

     Whether the steel circles are unfinished torque converter
covers; whether the provision in heading 7208 is more specific
than the provision in heading 7326. - 3 -

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)
states in part that any reference in a heading to an article
shall be taken to refer 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. 
GRI 3(a) states in part that where goods are, prima facie,
classifiable under two or more headings the heading which
provides the most specific description shall be preferred to
headings providing a more general description.     

     Relevant to the issue of essential character, we believe, is
the degree to which the steel circles have been advanced toward
their intended use at the time of their importation; that is,
whether they are physically recognizable as the articles they
will ultimately become.  This is always a question of fact and
depends on the merchandise in issue and the processing steps
involved.  In previously-decided protests, the post-importation
processing was fully described.  However, in this case protestant
identifies only "a number of pressing and stamping operations"
but does not describe them.  Therefore, we are unable to
determine whether the stamped steel circles have any particular
characteristic or characteristics that would impart the essential
character of a torque converter cover.  The fact that these
circles may, in all instances, be used to make torque converter
covers, is not legally dispositive as to their essential
character.          

     As to the second issue, the goods are prima facie
classifiable both in heading 7208 and in heading 7326.  In such
cases, GRI 3(a) requires that the steel circles be classifiable
in the provision that most narrowly and specifically describes
it, or the one with requirements that are the most difficult to
satisfy.  Goods classifiable in heading 7208 are necessarily
limited to those meeting the definition of the term flat-rolled
products, in chapter 72, note 1(k), HTSUS.  Therefore, all flat-
rolled products that are forged or stamped but not further
worked, and which have not assumed the character of goods of
another heading qualify as "articles" of heading 7326.  However,
only those forged or stamped articles meeting the terms of note
1(k) can be classifiable in heading 7208.  In addition, relevant
HTS Explanatory Notes indicate, at p. 1037, that heading 7326
covers all iron or steel articles...other than articles...more - 4 -

specifically covered elsewhere in the Nomenclature (Emphasis
original).  For these reasons, heading 7208 is more specific than
heading 7326.

HOLDING:

     Under the authority of GRI 1, the steel circles in issue are
provided for in heading 7208.  They are classifiable in
subheading 7208.90.00, HTSUS, as liquidated.  The protest should
be denied.

     In accordance with Section 3A(11)(b) of Customs Directive
099 3550-065, dated August 4, 1993, Subject: Revised Protest
Directive, you should mail this decision, together with the
Customs Form 19, to the protestant no later than 60 days from the
date of this letter.  Any reliquidation of the entry or entries
in accordance with the decision must be accomplished prior to
mailing the decision.  Sixty days from the date of the decision
the Office of Regulations and Rulings will take steps to make the
decision available to Customs personnel via the Customs Rulings
Module in ACS and to the public via the Diskette Subscription
Service, Lexis, the Freedom of Information Act and other public
access channels.


                              Sincerely,


                              John Durant, Director
                              Commercial Rulings Division