HQ 087462: Pillow Block

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 087462

                                          OCT 22 1990

            CLA-2:CO:R:C:G  087462 JAS

            CATEGORY:   Classification

            TARIFF NO.: None

            Richard G. Seley
            Rudolph Miles & Sons, Inc.
            P.O. Box 144
            El Paso, Texas 79942

            RE:  Pillow Block

            Dear Mr. Seley:

                 In your letter of June 22, 1990, on behalf of Emerson
            Power Transmission, Corp., Ithaca, N.Y., you inquire as to the
            tariff status of pillow blocks assembled in Mexico from
            components of U.S., Mexican and Japanese origin.  A sample was
            submitted.  Our ruling follows.

            FACTS:

                 Ball bearings (consisting of antifriction balls separated
            by plastic elements enclosed in an inner and outer race) of
            Japanese origin and grease nipples called Zerk fittings, and
            pressure sensitive name plates, both of U.S. origin, are
            shipped to Mexico.  In Mexico, a block housing is cast and
            machined to accommodate the bearing's outer race, and a hole is
            drilled and tapped for the grease nipple.  The bearing and one
            nipple are then assembled into the housing, and the name plate
            applied.  The resulting pillow block ball bearing assembly or
            housed bearing will be used in heavy machinery to support a
            rotating journal, shaft or other part.

                 The bearings represent approximately 38 percent and the
            U.S. origin components approximately 4 percent of the estimated
            cost or value of the completed article.  The pillow block
            housing represents approximately 17 percent of the cost or
            value of the completed article, while the Mexican assembly
            process, including certain fixed and variable overhead costs,
            represents 41 percent of the cost or value of the final
            article.













                                        - 2 -

            ISSUE:

                 Whether the ball bearing of Japanese origin has been
            substantially transformed in Mexico so that the pillow block or
            housed bearing assembly, when returned to the Customs
            territory, will be regarded as a product of Mexico for duty
            rate purposes, for country of origin marking purposes, and for
            purposes of the antidumping duty order on Japanese ball
            bearings.

            LAW AND ANALYSIS:

                 General Rule of Interpretation (GRI 1), Harmonized Tariff
            Schedule of the United States Annotated (HTSUSA), 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 notes do
            not require otherwise, according to GRIs 2 through 6.  Under
            the authority of GRI 1, upon return to the Customs territory
            the pillow block assembly will be provided for in heading 8483,
            as bearing housings, housed bearings and plain shaft bearings.
            We agree with your conclusion that actual classification will
            be under the provision for housed bearings incorporating ball
            bearings, in subheading 8483.20.8040, HTSUSA.

                 In order for the ball bearing of Japanese origin to be
            considered substantially transformed in Mexico, so as to be
            regarded as a product of Mexico for purposes of the antidumping
            duty order, the evidence must show that the processing or
            assembly in Mexico will result in a product other than or
            materially different from its constituent components.  That is,
            a new and different article of commerce must emerge from
            Mexico, one having a new name, character, or use.  Anheuser-
            Busch Brewing Association v. United States, 207 U.S. 556
            (1908).  A mere change in a product's name, without more, is a
            relatively unimportant consideration in most cases.  As to
            character and use, however, there must be evidence to show that
            the processing in Mexico transforms the Japanese ball bearing
            in such a way that it is no longer the essence of the pillow
            block.

                 A bearing block or pillow block is an iron casting or
            housing that supports a journal shaft or other part as it turns
            on the balls of the bearing within.  It functions as an anti-
            friction device to convert sliding friction to rolling
            friction.  The very essence of the assembled article is the
            ball bearing which is clearly identifiable in the assembly and
            is the actual anti-friction element.  The block or housing
            serves merely to secure the bearing to a machine and to support













                                       - 3 -

            the bearing and shaft as the shaft rotates.  In our opinion,
            the ball bearing has not lost its identifying characteristics
            by virtue of having been assembled in the pillow block.  We
            conclude, therefore, that the ball bearing of Japanese origin
            has not been substantially transformed by the assembly
            operation in Mexico.  The pillow block entering the Customs
            territory will be considered a product of Japan for tariff
            purposes.

                 We are informed that Antidumping Duty Order A-588-804
            covers not only antifriction bearings mounted or unmounted
            (other than tapered roller bearings) and parts thereof, from
            Japan, but encompasses ball bearing type pillow blocks and
            parts thereof as well.  You may confirm this by writing the
            Office of Antidumping Investigations, Import Administration,
            Department of Commerce, Washington, D.C. 20230.

            HOLDING:

                 Under the authority of GRI 1, the pillow block or housed
            bearing incorporating roller bearings, a product of Mexico, is
            provided for in heading 8483.  It is classifiable in subheading
            8483.20.4080, HTSUSA, dutiable at the rate of 5.7 percent ad
            valorem.

                 This ruling applies for duty rate purposes, for country of
            origin marking purposes, and for purposes of the antidumping
            duty order on antifriction bearings from Japan.

                 The question relating to the partial exemption from duty
            allowed by heading 9802.00.80 will be answered separately.



                                        Sincerely,



                                        John Durant, Director
                                        Commercial Rulings Division