Honeywell Seeks Duty-Free Treatment for Its Aircraft Brake Segments
International conglomerate Honeywell filed a complaint at the Court of International Trade to secure its preferred customs classification of its radial and chordal brake segments imports. After they're imported, the brake segments are manufactured into brake discs for airplanes (Honeywell International Inc. v. U.S., CIT #17-00256).
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Honeywell imported the brake segments under Harmonized Tariff Schedule subheading 5603.94.9070, which provides for “Nonwovens, whether or not impregnated, coated, covered or laminated: … Other: … Weighing more than 150 g/m2 ..." free of duty. CBP liquidated the brake segments under subheading 6307.90.9889, which provides for “Other made up articles, including dress patterns," dutiable at 7%.
Although it entered the brake segments under heading 5603, Honeywell is now seeking to classify them under subheading 8803.20.00, which provides for “Parts of goods of heading 8801 or 8802: … Undercarriages and parts thereof … For use in civil aircraft.” Honeywell argues that its brake segments can be used only with aircraft, placing them directly under HTS heading 8802. Further, the Explanatory Notes for heading 8803 say that the parts classified under this provision include "undercarriages (including brakes and brake assemblies)." Since brake discs -- the final product the brake segments are used in -- are parts of aircraft braking systems, they properly fit under heading 8803, Honeywell argued.
If the court rejects that argument, then Honeywell floated a second rationale for why heading 8803 is the proper home for the brake segments. The brake components should be classified under this heading since it is the most specific description of the imports, Honeywell said. If a good fits under two HTS subheadings -- as would be the case in Honeywell's alternative argument -- then the tie goes to the more specific heading. CBP's preferred classification, heading 6307, is a "basket provision," Honeywell said, ranking lower than heading 8803, a provision for parts.
"Based on the language of HTSUS headings 6307 and 8803, the brake segments are properly classified under HTSUS heading 8803 as it provides the most specific description of these articles according to the rule of relative specificity," the complaint said.