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NY B85883




June 18, 1997

CLA-2-84:RR:NC:1:102 B85883

CATEGORY: CLASSIFICATION

TARIFF NO.:8482.99.0500; 9802.00.5060; 9802.00.6000.

Ms. Carol Hagyard
A.N. Deringer, Inc.
1010 Niagara Street
Buffalo, NY 14213

RE: The tariff classification of outer races for bearings from Canada.

Dear Ms. Hagyard:

In your letter dated May 5, 1997 you requested a tariff classification ruling on behalf of your client Kilian Manufacturing Corporation.

The item in question is an outer race for a radial ball bearing. The race consists of an injection molded, plastic outer ring and a ring-shaped metal insert which is grooved to provide a raceway for ball rollers. A sample of the metal insert was submitted with your request.

The metal insert is manufactured in the U.S. and exported to Canada. In Canada an injection molding process is used to apply a plastic ring to the outer diameter of the metal insert. The metal insert with the applied plastic ring is then returned to the U.S. for "further processing" into a finished ball bearing. You indicate that the purpose of the plastic outer ring is to reduce noise in applications where the finished bearing will roll on a metal frame.

The applicable subheading for the outer race will be 8482.99.0500, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for inner or outer rings or races for ball bearings. The general rate of duty will be 10.3 percent ad valorem.

You also inquired concerning the applicability of HTSUS subheading 9802.00.6000 and subheading 9802.00.5060 to the exported metal insert.

Under subheading 9802.00.6000, HTSUS, articles of metal (except precious metal) manufactured in the U.S. or subject to a process of manufacture in the U.S., if exported for further processing, and if the exported article as processed outside the U.S., or the article which results from processing outside the U.S., is returned to the U.S. for further processing , may be entered with duty on the cost or value of the processing abroad upon compliance with applicable regulations.

Customs has previously held that for purposes of subheading 9802.00.6000, HTSUS, the term "further processing" has reference to processing that changes the shape of the metal or imparts new and different characteristics which become an integral part of the metal itself and which did not exist in the metal before processing.

In this respect, the process of applying the plastic outer ring to the metal insert does not change the shape of the metal insert nor does it impart a new and different characteristic which has become an integral part of the metal itself. Further, it appears that, upon exportation from Canada, the outer race is ready for assembly with other components to form a completed bearing, and does not require any further processing in the U.S. Accordingly, it is our opinion that the metal insert does not meet the "dual processing" requirement of HTSUS subheading 9802.00.6000.

Under HTSUS subheading 9802.00.5060 articles exported from and returned to the U.S., after having been advanced in value or improved in condition by repairs or alterations outside the U.S., may qualify for a duty exemption, provided the foreign operation does not destroy the identity of the exported articles or create new or commercially different articles through a process of manufacture.

In its condition upon exportation from the U.S. the metal insert has the essential character of an outer race for a bearing and is complete for its intended use as such. The application of the plastic outer ring in Canada does not change the identity or character of the metal insert, and no new article of commerce has been created. The metal insert is merely enhanced for quieter operation.

It is our opinion that the application of the plastic ring in Canada is an alteration within the meaning of subheading 9802.00.5060, HTSUS. Provided the documentary requirements of section 181.64, Customs Regulations (19 CFR 181.64) are satisfied, the metal insert will qualify for a duty exemption under HTSUS subheading 9802.00.5060 when returned to the U.S.

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 212-466-5493.

Sincerely,

Robert Swierupski
Chief, Metals and Machinery Branch

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