HQ H196100

August 4, 2014
CLA-2 OT:RR:CTF:TCM H196100 HvB

CATEGORY: Classification
TARIFF NO.: 8483.30.80

Area Port Director
U.S. Customs and Border Protection
605 W. 4th Avenue (Suite 230)
Anchorage, AK 99501

RE:    Application for Further Review of Protest No. 3195-11-100252; Bushing and Sleeve Bearings
Dear Area Port Director:

This is our response to the Application for Further Review (“AFR”) of Protest No. 3195-11-100252, filed by Huang Engineering LLC (“Protestant”). The AFR concerns the classification of bushing and sleeve bearings under the Harmonized Tariff Schedule of the United States (“HTSUS”).
FACTS:

This protest concerns two types of journal (or plain shaft) bearings: bushings and sleeve bearings. The bushing and sleeve bearings are one piece metal components used to provide sliding bearing surfaces in sorting devices used on machines for the manufacture of semiconductors. The Protestant states that articles are used to provide linear motion to sort out bad components in semiconductor manufacturing.

On March 10, 2011, Protestant entered the subject merchandise as “journal bearings – bronze machin[sic] pl shaft bearing, w/o hous, ot” under subheading 8483.30.8090, HTSUS, which provides for “…bearing housings, housed bearings and plain shaft bearings…bearing housings; plain shaft bearings: other:other.” On June 27, 2011, the Protestant filed a Post Entry Amendment (“PEA”), averring that the subject merchandise is properly classified in heading 8486, HTSUS, as parts for semiconductor devices. U.S. Customs and Border Protection (“CBP’) denied the PEA and liquidated the merchandise as originally entered on September 30, 2011.

The instant protest and AFR were timely filed on November 3, 2011.

ISSUE:

Whether the subject bushing and sleeve bearings used in machines for the manufacture of semiconductors and semiconductor devices are classifiable in heading 8483, HTSUS, as other plain shaft bearings, or in heading 8486, HTSUS, as parts of machines for the manufacture of semiconductor devices.
LAW AND ANALYSIS:

Initially, we note that the matter protested is protestable under 19 U.S.C. § 1514(a)(2), as a decision on classification. The protest was timely filed within 180 days of liquidation for entries made on or after December 18, 2004. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub. L. 108-429, § 2103(2)(B) (codified as amended at 19 U.S.C. § 1514(c)(3) (2006)).

Further Review of Protest No. 3195-11-100252 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with a ruling of the Commissioner of Customs or his designee, or with a decision made at any port with respect to the same or substantially similar merchandise. Specifically, Protestant argues that the sleeve and bushing bearings are custom designed and have no use other than use on machines for the manufacture of semiconductors, and proposes that the bearings are correctly classified in subheading 8486.90.00, HTSUS, as parts of machines and apparatus for the manufacture of semiconductors. Protestant cites to New York Ruling Letter (“NY”) N015224, dated August 21, 2007 in support of his argument.

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The following 2011 HTSUS provisions under consideration are:

8483    Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof:

8483.30        Bearing housings; plain shaft bearings:

8483.30.80        Other…

8486     Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9(C) to this chapter; parts and accessories:

8486.90    Parts and accessories…

*    *    *

Note 2 to Section XVI states, in pertinent part:

    Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of     machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are     to be classified according to the following rules:

Parts which are goods included in any of the headings of chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;

Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate.
…

*    *    *

In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) may be utilized. The ENs, though not dispositive or legally binding, may provide commentary on the scope of each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international level. CBP believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

    The EN for Section XVI reads in pertinent part:

(II) PARTS (Section Note 2)
        
In general, parts which are suitable for use solely or principally with particular machines or apparatus (including those of heading 84.79 or heading 85.43), or with a group of machines or apparatus falling in the same heading, are classified in the same heading as those machines or apparatus subject, of course, to the exclusions mentioned in Part (I) above. Separate headings are, however, provided for:
        …
        
The above rules do not apply to parts which in themselves constitute an article covered by a heading of this Section (other than headings 84.87 and 85.48); these are in all cases classified in their own appropriate heading even if specially designed to work as part of a specific machine. This applies in particular to:

            …

                (6)   Transmission shafts, cranks, bearing housings, plain shaft bearings,                 gears and gearing (including friction gears and gear-boxes and other                 speed changers), flywheels, pulleys and pulley blocks, clutches and shaft                 couplings (heading 84.83).
            …

*     *    *    *    *

The Protestant avers that the sleeve and bushing bearings in question are properly classified in subheading 8486.90, HTSUS, which provides for “Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in Note 9(C) to this chapter; parts and accessories…parts and accessories” on the basis that the articles are custom designed parts for machines to manufacture semiconductors which have no other uses.

In support of that assertion, Huang relies on NY N015224, dated August 21, 2007, wherein CBP classified a linear slide spindle for machines was classified in subheading 8486.90, HTSUS. However, we disagree that the articles are similar. Unlike the bearings at issue here, the linear slide spindle is an assembly of components consisting of a stainless steel shaft, a stainless steel sleeve, a three stage differentially pumped port system and a graphite bushing. Thus, the article considered in NY N015224 is not just a bearing of HTSUS heading 8483, but rather an assembly of components outside the scope of HTSUS heading 8483.

Note 2(a) to Section XVI provides that parts which are goods that are included in a heading of Chapter 84 should be classified as a good of that respective heading. The subject bearings and sleeves are provide for eo nomine in heading 8483, HTSUS. The EN to Note 2, Section XVI explains that “plain shaft bearings” (among the other articles of heading 84.83) should “in all cases be classified in their own appropriate heading even if specifically designed to work as part of a specific machine.” As we stated in HQ H017651, dated February 13, 2009, in the case where an article is classified by Note 2(a) to Section XVI, classification by Note 2(b), i.e., as an “other part”… “solely or principally used with a particular kind of machine of the same heading…” is precluded. Therefore, we need not address the applicability of heading 8486, HTSUS. We note, however, that the Protestant fails to explain both how the parts are solely or principally used for a semiconductor device and to identify the kind of machine in which the subject articles are used. Accordingly, we find that the sleeve and bushing bearings at issue are classified in heading 8483, HTSUS, by application of note 2(a) to section XVI and GRI 1.

    We note that this decision is consistent with HQ 086862, dated May 15, 1990 (in which we classified “bronze plain shaft bearings” in subheading 8483.40), HQ 955056. dated July 28, 1994 (classifying bushings), and NY J85831, dated June 20, 2003 (classifying bushings), NY H89858, dated April 19, 2002 (classifying plain shaft bearings).
HOLDING:

By application of GRI 1 and note 2(a) to section XVI, HTSUS, the subject merchandise is classified under heading 8483, HTSUS, and specifically provided for in subheading 8483.30.80, HTSUS, as "[t]ransmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft coupling (including universal joints); parts thereof: Bearing housings; plain shaft bearings: Other…" with a column one, general rate of duty of 4.5 percent ad valorem. You are instructed to DENY the protest.

In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision.

Sixty days from the date of the decision Regulations and Rulings of the Office of International Trade will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.


         Sincerely,


                             Myles B. Harmon, Director                          
Commercial and Trade Facilitation Division