CLA-2 CO:R:C:M 950464 LTO
Steven S. Weiser, Esq.
Arthur W. Bodek, Esq.
Siegel, Mandell & Davidson, P.C.
One Astor Plaza
1515 Broadway
New York, N.Y. 10036
RE: Housings for industrial high density hydraulic balers; NY
850321; HQ 556103; EN 84.22
Dear Mr. Weiser and Mr. Bodek:
This is in reply to your letter of June 21, 1991, on behalf
of Piqua Engineering, Inc., in which you request the tariff
classification, GSP eligibility and country of origin marking
requirements for housings for industrial high density hydraulic
balers. In HQ 556103, dated October 7, 1991, you were advised
that the cost or value of the steel sheets imported into Mexico
and used in the manufacture of the baler housing units may be
included in the GSP value-computation. You were further advised
that the tariff classification and country of origin marking
requirements would be answered in separate ruling letters. Our
decision on the classification of the housings follows.
FACTS:
Piqua is contemplating the importation of baler housings in
two possible stages of production, either: 1) a baler housing
into which a motor has been installed; or 2) a baler housing into
which a motor and an electrical system has been installed. The
industrial high density baler housing unit will be imported into
the United States where it will be combined with U.S. origin
components in the manufacture of the completed high density
hydraulic baler. The finished baler will be used as a waste
management and recycling system which is designed to produce
dense bales for the recycling industry, thereby reducing
material handling time, storage space, transportation costs, etc.
ISSUE:
What is the proper classification for the housings 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 that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes . . . ." Heading 8422,
HTSUSA, provides for "other packing or wrapping machinery." The
Harmonized Commodity Description and Coding System Explanatory
Note (EN) 84.22, pg. 1184, states that this heading covers
"[b]aling or banding machinery." In NY 850321, dated March 22,
1990, a finished industrial high density hydraulic baler, also
imported by Piqua, was classified under subheading 8422.40.90,
which provides for "[o]ther packing or wrapping machinery . . .
[o]ther."
Subheading 8422.90.90, HTSUSA, provides for "parts" of
packing or wrapping machinery. Section XVI, Note 2(b) states
that "parts, if suitable for use solely or principally with a
particular kind of machine, or with a number of machines of the
same heading . . . are to be classified with the machines of that
kind." The subject housing and motor (with or without the
electrical system) is identifiable by its shape and construction
as a part designed solely or principally for use in the
construction of a baler. The imported housing (with or without
the electrical system) cannot be used on its own. Rather, it
must be combined with the essential U.S. components (hydraulic
cylinder, platen, platen coupling, etc.) to form an article
capable of fulfilling any function, namely, that of a fully
operational hydraulic baler. The imported article is dedicated
exclusively as a necessary component of a baler, and is
classifiable as a "part" of packing or wrapping machinery under
subheading 8422.90.90, HTSUSA.
HOLDING:
The housings, in either stage of production, are
classifiable under subheading 8422.90.90, HTSUSA, which provides
for "[o]ther packing or wrapping machinery . . . [p]arts . . .
[o]ther."
Sincerely,
John Durant, Director
Commercial Rulings Division