HQ 955441: Wheel Hub Forging, "Green" Forging not Heat Treated or Machined; Component for Wheel Hub Assembly With Pulsar Ring and Without Pulsar Ring; Parts of Ball Bearings, Heading 8482, Parts of Motor Vehicles, Heading 8708; Articles of Iron or Steel, Heading 7326; HQ 088762

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 955441

                            JANUARY 5 1994

CLA-2:CO:R:C:M    955441 JAS

CATEGORY:    Classification

TARIFF NO.:  7326.90.90

Mr. John A. Slagle
Barthco International, Inc.
7575 Holstein Avenue
Philadelphia, PA 19153

RE:  Wheel Hub Forging, "Green" Forging not Heat Treated or
     Machined; Component for Wheel Hub Assembly With Pulsar Ring
     and Without Pulsar Ring; Parts of Ball Bearings, Heading
     8482, Parts of Motor Vehicles, Heading 8708; Articles of
     Iron or Steel, Heading 7326; HQ 088762 

Dear Sir:

     Your letter of October 5, 1993, to the Area Director of
Customs, New York Seaport, has been referred to this office for
reply.  The inquiry, on behalf of SKF-USA, concerns the tariff
classification of forgings from Italy for use in wheel hub
assemblies.

FACTS:

     The article in question is an iron or steel forging which
you state will be heat treated and machined after importation
then assembled into what you refer to as a wheel hub unit 2. 
Submitted drawings depict a cylindrical base metal forging,
raised in the middle and flanged around the circumference to
accommodate five (5) bolt holes punched or drilled after the
article is forged.  These articles will be assembled into one of
two models of a second generation ball bearing flange unit, the
subject of HQ 088762, dated December 9, 1991. 

     The wheel forgings are not machined at the time of
importation.  You state that they are capable of being
incorporated into either model of the wheel hub unit, depending
on how they are machined after importation.  You cite HQ 088762
as authority for using General Rule of Interpretation (GRI) 3(c)
to classify the wheel hub forgings in subheading 8708.99.50,
Harmonized Tariff Schedule of the United States (HTSUS), as
heading 8708 occurs last in numerical order among those which
equally merit consideration.                              - 2 -

     The provisions under consideration are as follows:

     7326.90.90     Other articles of iron or steel: Other:
                    ...5.7 percent ad valorem

          *         *         *         *         *

     8482.99.10     Ball or roller bearings, and parts
                    thereof: Parts: Other: Parts of ball
                    bearings (including parts of ball
                    bearings with integral shafts)
                    ...11 percent ad valorem
     
          *         *         *         *         *                   
     8708.99.50     Parts and accessories of the motor 
                    vehicles of headings 8701 to 8705:
                    Other parts and accessories: Other:
                    ...3.1 percent ad valorem

ISSUE:

     Whether the wheel hub forgings in issue are unfinished parts
of articles for tariff purposes.

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.

     In accordance with GRI 2(a), HTSUS, any reference in a
heading to an article includes that article imported incomplete
or unfinished provided that, the unfinished article has the
essential character of the complete or finished article.  
     
     HQ 088762 described two models of an article consisting of
an inner race machined to accept a splined axle shaft, lubricated
rolling elements and an outer race which is integrally flanged to
facilitate attachment to an automobile's wheel and brake
assembly.  The ruling stated that the primary difference between
the two models was that one had a pulsar ring that functioned
like a sensor and dedicated the article for use with an
automobile's anti-locking brake system; the other had no pulsar
ring and functioned primarily to reduce friction.  HQ 088762 held
that the wheel hub assembly with no pulsar ring was a ball
bearing of heading 8482, and the hub assembly with a pulsar ring
was a motor vehicle part of heading 8708.                              - 3 -

     For tariff classification purposes, the GRIs are applied
sequentially.  GRI 3 may not be consulted without first
considering GRIs 1 and 2.  

     Heading 7326 covers iron or steel articles obtained by
forging or punching, among other processes, other than articles
covered more specifically in other provisions of the HTSUS. 
Relevant Explanatory Notes, which we routinely consult to clarify
the scope of provisions in the HTS state specifically at p. 1038
that heading 73.26 does not cover forgings that are recognizable
parts of machinery and mechanical appliances and also excludes
unfinished forgings which require further working but have the
essential character of a finished product.  

     Our examination of the submitted drawings shows that in the
U.S. the hub forging is turned and ground, then heat treated,
after which it is finished machined, cleaned and polished.  This
processing may be slightly modified by cutting a small lip on a
portion of the forging's surface onto which a pulsar ring may be
attached.  This modification in the processing dedicates the
forging to either model of the ball bearing flange unit.  In its
condition as imported, however, the wheel hub forging lacks any
distinctive or unique characteristic that would establish its
identity either as part of a ball bearing or as part of a motor
vehicle.  The hub forging does not have the essential character
of a complete or finished article and, therefore, is not
classifiable according to GRI 2(a).  For this same reason, the
hub forging is not prima facie classifiable under two or more
headings, in this case headings 8482 and 8708, for purposes of
GRI 3. 
     
HOLDING:

     Under the authority of GRI 1, the iron or steel hub forging
is provided for as an article of iron or steel, in heading 7326. 
It is classifiable in subheading 7326.90.90, HTSUS.  

                                   
                              Sincerely,


                              John Durant, Director
                              Commercial Rulings Division