CLA-2 CO:R:C:G 087513 MBR
Mr. Randy C. Willette
A.N. Deringer, Inc.
30 West Service Road
Champlain, New York 12919-9703
RE: Index 200 laser (industrial use) and MPS-100 fully
integrated laser machinery center designed for use with the Index
200 laser.
Dear Mr. Willette:
This is in reply to your letter of July 3, 1990, on behalf
of Lumonics, Inc., requesting classification of the Index 200
laser (industrial use) and the MPS-100 fully integrated laser
machinery center designed for use with the Index 200 laser, under
the Harmonized Tariff Schedule of the United States Annotated
(HTSUSA).
FACTS:
The Index 200 laser is described as an industrial laser
primarily designed to work non-metals such as polymer film,
polyimides, epoxies, encapsulation materials, adhesives, solder
resists and metal substrates. The Index 200 consists of the
laser source, the gas manifold system, the gas processor, a
transformer, a cooling system and a power supply.
The MPS-100 fully integrated laser machinery center is
designed specifically for use with the Index 200 laser. The MPS-
100 is a fully enclosed work station with a D.C. motor driven X-Y
table system for precise movement of the workpiece. It also
contains a closed circuit TV monitoring system and a "Computer
Numerical Control" (CNC) which controls the complete process
including workpiece movements and laser on/off. The CNC system
additionally includes a color graphics display, floppy disc data
input, sealed keyboard, and RS232C interface. The literature
indicates that the beam delivery system is contained in the MPS-
100. The Index 200 laser and the MPS-100 laser machinery center
may be imported together or separately from Canada.
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ISSUE:
What is the classification of an industrial use Index 200
laser and its MPS-100 fully integrated laser machinery center,
imported together or separately, under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA)?
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUSA
govern the classification of goods in the tariff schedule. GRI 1
states, in pertinent part:
...classification shall be determined according to the terms
of the headings and any relative section or chapter notes...
Heading 9013, HTSUSA, provides for: "Lasers, other than
laser diodes; parts and accessories thereof." The Harmonized
Commodity Description and Coding System Explanatory Notes (EN),
page 1479, state in pertinent part:
Lasers are classified in this heading not only if they
are intended to be incorporated in machines or appliances
but also if they can be used independently, as compact
lasers or laser systems, for various purposes such as
research, teaching or laboratory examinations.
However, the heading excludes lasers which have been
adapted to perform quite specific functions by adding
ancillary equipment consisting of special devices (e.g.,
work-tables, work-holders, means of feeding and positioning
workpieces, means of observing and checking the progress of
the operation, etc.) and which, therefore, are identifiable
as working machines, medical apparatus, control apparatus,
measuring apparatus, etc. Machines and appliances
incorporating lasers are also excluded from the heading.
Insofar as their classification is not specified in the
Nomenclature, they should be classified with the machines or
appliances having a similar function.
Examples include:
(i) Machine-tools for working any materials by removal of
material by laser (e.g., metal, glass, ceramics or
plastics)(heading 84.56).
The Explanatory Notes, although not dispositive, should be
looked to for the proper interpretation of the HTSUSA. See 54
Fed. Reg. 35128 (August 23, 1989).
Therefore, clearly, when the Index 200 laser is imported
separately (without "ancillary -3-
classifiable under subheading 9013.20.00, HTSUSA, which provides
for: "lasers, other than laser diodes: lasers, other than laser
diodes."
However, when the Index 200 laser is imported with the MPS-
100 machining center, the EN further direct that classification
is appropriate under heading 8456, HTSUSA, which provides for:
"[m]achine tools for working any material by removal of material,
by laser or other light...."
You state that the MPS-100 machining center may be imported
separately in the following four configurations: A) ($38,000)
"bare shell" without CNC, X-Y tables or beam delivery system; B)
($129,900) includes X-Y tables, CNC, and a beam delivery system;
C) ($139,900) includes X-Y tables, a more expensive CNC, and a
beam delivery system; D) ($59,000) includes a beam delivery
system but not a CNC or X-Y tables.
GRI 2(a) states in pertinent part:
Any reference in a heading to an article shall be taken to
include a reference to that article incomplete or
unfinished, provided that, as entered, the incomplete or
unfinished article has the essential character of the
complete or finished article...
Therefore, the four configurations of the MPS-100 are only
classifiable in heading 8456, HTSUSA, if they have the "essential
character" of a complete or finished article classifiable under
heading 8456, HTSUSA, which provides for: "[m]achine tools for
working any material by removal of material, by laser or other
light...."
Further clarification is provided by the section XVI,
General Explanatory Notes, page 1132, which state:
(IV) Incomplete Machines
Throughout the Section any reference to a machine or
apparatus covers not only the complete machine, but also an
incomplete machine (i.e., an assembly of parts so far
advanced that it already has the main essential features of
the complete machine). Thus a machine lacking only a
flywheel, a bed plate, calender rolls, tool holders, etc.,
is classified in the same heading as the machine, and not in
any separate heading provided for parts. Similarly a
machine or apparatus normally incorporating an electric
motor (e.g., electro-mechanical hand tools of heading 85.08)
is classified in the same heading as the corresponding
complete machine even if presented without that motor.
It is Customs position tha-4-
assembly of parts so far advanced that they already have the main
essential features of the complete machine, whereas,
configurations A) & D) are not sufficiently advanced to have the
essential character of the finished article.
HOLDING:
The Index 200 laser imported separately (without "ancillary
equipment"), is properly classifiable under subheading
9013.20.00, HTSUSA, which provides for: "lasers, other than laser
diodes: lasers, other than laser diodes." The rate of duty is
3.1% ad valorem, if the requirements of the U.S.- Canada Free
Trade Agreement are met.
The Index 200 laser imported with the MPS-100 machining
center, is properly classifiable under subheading 8456.10.50,
HTSUSA, which provides for: "[m]achine tools for working any
material by removal of material, by laser or other light...."
The rate of duty is 1.8% ad valorem, if the requirements of the
U.S.- Canada Free Trade Agreement are met.
The MPS-100 machining center configurations (if imported
separately) are classifiable in the following manner: A) ($38,000
"bare shell" without CNC, X-Y tables or beam delivery system),
and D) ($59,000 includes a beam delivery system but not a CNC or
X-Y tables) are not sufficiently advanced to have the essential
character of the finished article, and are therefore classifiable
under 8466.93.70, HTSUSA, whereas, B) ($129,900 includes X-Y
tables, CNC, and a beam delivery system), and C) ($139,900
includes X-Y tables, a more expensive CNC, and a beam delivery
system) are an assembly of parts so far advanced that they
already have the main essential features of the complete machine,
and are therefore classifiable under 8456.10.50, HTSUSA, which
provides for: "[m]achine tools for working any material by
removal of material, by laser or other light...." The rate of
duty for A) and D) is 2.8% ad valorem, if the requirements of the
U.S.- Canada Free Trade Agreement are met. The rate of duty for
B) and C) is 1.8% ad valorem, if the requirements of the U.S.-
Canada Free Trade Agreement are met.
Sincerely,
John Durant, Director
Commercial Rulings Division