The Court of International Trade ruled Jan. 30 that radial, web, and chordal fabric segments used in the production of aircraft brake discs are properly classified as aircraft parts under HTSUS 8803.20.00 (duty-free) rather than as other made-up textile articles under HTSUS 6307.90.98 (7 percent duty).
The products at issue are made from non-woven polyacrylonitrile fiber fabric material. The radial and chordal segments are made by needling web and unidirectional tow fabrics together to form a duplex fabric, while the web segments are made by needling tows of oxidized PAN fiber in a manner that results in a web of fibers. After importation the segments are used to produce preforms that are subjected to a carbonization cycle in a furnace after which they no longer exhibiting the fabric quality of the imported segments and instead become rigid, solid, and inflexible. The preforms then go through a months-long densification process yielding a final product that is manufactured into aircraft brake discs.
“This case stands apart from other classification cases involving parts of articles,” the CIT stated. “The imported segments are not installed directly on an aircraft. Instead, the segments are imported into the United States as an upstream product for the production of the aircraft brake discs, an article the parties agree constitutes a part of an aircraft. Thus, the issue in this case involves the extent to which a part of a part is a part for tariff purposes.”
According to the CIT, the plaintiff argued that the segments are fully finished parts ready for use in the manufacture of brake discs, whereas the government contended that the segments are not sufficiently advanced at importation to be recognized as a part and only become such through extensive post-importation manufacturing that results in a wholly new article.
The CIT concluded that the imported segments are classifiable as aircraft parts because they are suitable for use in the preforms, require no further processing prior to such use, and have no other substantial commercial application. They may also be considered integral, constituent, and component parts of the preforms even though they are combined to form the preforms instead of being attached to them, the CIT said, rejecting the government’s argument that the line separating parts from raw materials is separability from the downstream article.
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