CIT Amends Customs Ruling on Plastic Car Parts, Says Axle Cover Not a 'Lid' or 'Cap'

The Court of International Trade on Feb. 26 issued an amended decision in a customs case on the tariff classification of five categories of chrome-plated plastic automobile parts after initially deciding the case Dec. 18. The new decision adds a discussion of axle covers, the fifth category of goods, finding them to fall under Harmonized Tariff Schedule heading 8708 pursuant to General Rule of Interpretation 1.

The category five axle covers work to "cover the ends of the axles on heavy-duty 18-wheeler-type trucks, preventing road debris and water from getting into the axle," and "impart a decorative appearance." CBP classified them under HTS heading 3923 as goods "for the conveyance or packing of goods, of plastics," specifically under subheading 3923.50.00, which cover "stoppers, lids, caps and other closures."

Importer Jing Mei said the goods should fall under heading 8708, which covers motor vehicle parts and accessories, and specifically subheading 8708.70.6045, which covers wheel covers and vehicle hubcaps. Judge Richard Eaton said the legal analysis of the goods differs from the other four categories of products, "mainly because the subject axle covers fit on the axle end and not on the body of the vehicle."

CBP said the axle covers are specifically provided for under subheading 3923.50.00 since they function "as a cover, lid or closure for the end of the axle" and are made of plastic, meaning Additional U.S. Rule of Interpretation (ARI) 1(c) bars classification under subheading 8708.70.6045. ARI 1(c) says a provision for parts of an article covers goods solely or mainly used as part of such articles, but a parts provision "shall not prevail over a specific provision for such part or accessory" in the absence of special context. Since Jing Mei's preferred subheading is a parts provision that shall not "prevail over a specific provision for such part or accessory," subheading 3923.50.00 wins the day, the agency said.

Eaton noted that under GRI 1, "the possible headings are to be evaluated without reference to their subheadings, which cannot be used to expand the scope of their respective headings."

CBP's preferred heading, 3923, appears to cover "two distinct classes of merchandise": articles for the packing of goods and stoppers, lids, caps and other closures. CBP said the goods fall under the second class. In assessing the claim, Eaton looked to the common meaning of the terms "stopper," "cap" and "lid," along with the noscitur a sociis canon of construction, which says that the meaning of an unclear word or phrase should be resolved by the "words immediately surrounding it."

Applying these principles, Eaton said that "this heading does not provide for the classification of, for instance, baseball 'caps' or caps for cap guns." The terms stoppers, lids and caps work to "contextualize each other term" and give each other meaning, making them "closures." As a result, the axle covers are not "stoppers," "lids" or "caps" as set in heading 3923, the judge ruled.

Eaton found that heading 8708 is the proper home for the axle covers, saying that as "parts" of motor vehicles, they are a "smaller component of the larger vehicle that attach to the end of the vehicle's axles, and function to keep road debris and water from getting into the axle, thus preventing corrosion." The court added that GRI 6, which says goods are classified per the terms of a heading's subheadings and any related subheading notes, resolves in favor the Jing Mei's preferred tariff provision.

The axle covers have the "characteristics and functional attributes of the wheel covers and hubcaps found under subheading 8708.70.60.45 ('Wheel covers and hubcaps for vehicles')," the opinion said. "That is, like the hubcaps, the axle covers, too, act as a cover for the ends of a motor vehicle’s axles, which are located in the center area of the exposed side of a motor vehicle wheel."

In the original decision, the trade court ruled that the category one articles covering interior trim pieces are classified under Harmonized Tariff Schedule subheading 3926.30.50; the category two goods, covering door handles and door handle parts, fit under subheading 3926.30.10; the category three goods, covering external trim articles, fall under subheading 3926.30.50; and category four goods, covering mirror scalps, fall under subheading 8708.29.50.60 (see 2401170069).

(Jing Mei Automotive (USA) v. U.S., Slip Op. 23-180, CIT # 13-00321, dated 12/18/23, amended 02/26/24; Judge: Richard Eaton; Attorneys: M. Jason Cunningham of Sonnenberg & Cunningham for plaintiff Jing Mei Automotive (USA); Edward Kenny for defendant U.S. government)