CLA-2 CO:R:C:M 955504 RFA
Regional Commissioner of Customs
c/o Protest and Control Section
6 World Trade Center, Room 762
New York, NY 10048-0945
RE: Protest No. 1001-93-101532; Power take-off (PTO) clutch/
brake; parts for tractors suitable for agricultural use;
composite machine; principal function; section XVI, legal
note 3; section XVII, legal note 2(f); heading 8708
Dear Regional Commissioner:
The following is our decision regarding the request for
further review of Protest No. 1001-93-101532, which concerns the
classification of power take-off clutch/brakes under the
Harmonized Tariff Schedule of the United States (HTSUS). The
subject entry was liquidated on December 28, 1992. The protest
was timely filed on March 18, 1993.
FACTS:
The subject merchandise, labeled as the Ogura electro-magnetic power take-off ["PTO"] clutch and mechanical brake
[hereinafter "PTO clutch/brake"] participates in the rotation of
a PTO tractor blade. When power is applied to the PTO clutch/
brake, an electromagnetic field causes the unit to function as a
clutch by pulling the unit's armature until it engages the
pulley, thereby facilitating the turning of the blade. The
creation of the electromagnetic field draws back the spring-actuated brake. When power to the PTO clutch/brake is
terminated, the electromagnetic field disappears and the spring-actuated brake halts the blade's rotation by pulling the armature
against the brake shroud, thereby stopping the output pulley.
Even though the blade has stopped, the PTO tractor engine
continues to run.
The merchandise was entered under subheading 8708.99.10,
HTSUS, as parts of tractors suitable for agricultural use. The
entry was liquidated under subheading 8505.20.00, HTSUS, as
electromagnetic clutches and brakes.
Classification of the merchandise under subheading
8708.93.10, HTSUS, as clutches and parts for tractors suitable
for agricultural use, is also under consideration.
The following subheadings are under consideration:
8505.20.00: . . . ; electromagnetic couplings, clutches and
brakes; . . . : [e]lectromagnetic couplings,
clutches and brakes. . . .
Goods classifiable under this provision have a general,
column one rate of duty of 3.9 percent ad valorem.
8708 Parts and accessories of the motor vehicles of headings
8701 to 8705: [o]ther parts and accessories:
8708.93.10 Clutches and parts thereof: [f]or tractors
suitable for agricultural use. . . .
Goods classifiable under this provision have a general,
column one rate of duty of free.
8708.99.10 Other: [p]arts of tractors suitable for
agricultural use. . . .
Goods classifiable under this provision have a general,
column one rate of duty of free.
ISSUE:
Is the PTO clutch/brake classifiable as a composite machine,
and if so, what is its principal function under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's). GRI
1 provides that classification shall be determined according to
the terms of the headings and any relative section or chapter
notes.
The protestant states that the merchandise consists of an
electromagnetic clutch and a mechanical brake. According to the
information provided, the brake portion operates or engages based
upon the absence of an electromagnetic field. Because the brake
operates as a result of an electromagnetic phenomena, Customs
finds that it is an electromagnetic brake.
The subject merchandise consists of a clutch and a brake
fitted together to form a whole, which performs alternative
functions of engaging and disengaging a tractor blade through the
turning on and off of an electromagnetic field. Section XVI,
Legal Note 3, HTSUS, reads as follows:
Unless the context requires otherwise, composite
machines consisting of two or more machines fitted
together to form a whole and other machines adapted for
the purpose of performing two or more complementary or
alternative functions are to be classified as if
consisting only of that component or as being that
machine which performs the principal function.
Based upon Section XVI, Legal Note 3, HTSUS, we find that
the PTO clutch/brake meets the definition of a composite machine.
The only remaining issue is which component performs the
principal function.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Cooperation
Council's official interpretation of the HTSUS. While not
legally binding, the ENs provide a commentary on the scope of
each heading of the HTSUS and are generally indicative of the
proper interpretation of these headings. See T.D. 89-80, 54 FR
35127, 35128 (August 23, 1989). EN (VI) to section XVI, for
multi-function and composite machines, states as follows:
In general, multi-function machines are classified
according to the principal function of the machine.
Multi-function machines are, for example, machine-tools for working metal using interchangeable tools,
which enable them to carry out different machining
operations (e.g., milling, boring, lapping).
Where it is not possible to determine the
principal function, and where as provided in Note 3 to
the Section, the context does not otherwise require, it
is necessary to apply General Interperative Rule 3(c)
. . . .
The merchandise functions alternatively as a clutch and a
brake. Each function is important to the safe operation of the
tractor blade. GRI 3(c) states as follows:
When goods cannot be classified by reference to 3(a) or
3(b), they shall be classified under the heading which
occurs last in numerical order among those which
equally merit consideration.
The merchandise consists of an electromagnetic clutch and an
electromagnetic brake. Both components are provided for in the
same heading and subheading. Therefore, the merchandise is
classifiable under subheading 8505.20.00, HTSUS.
Protestant submitted several arguments for the exclusion of
the merchandise from heading 8505, HTSUS, based on the claim that
the merchandise contains a mechanical brake. Because of the
factual determination that the merchandise contains an
electromagnetic brake and not a mechanical brake, there is no
need to address the merits of these arguments.
The protestant argues that the merchandise should be
classified under heading 8708, HTSUS, as parts and accessories of
tractors suitable for use for agriculture. Heading 8708, HTSUS,
is within Section XVII, HTSUS. Legal Note 2(f) to Section XVII,
HTSUS, states as follows:
2. The expressions "parts" and "parts and
accessories" do not apply to the following articles,
whether or not they are identifiable as for the goods
of this section:
* * * *
(f) [e]lectrical machinery or equipment (chapter 85). . . .
Even though the PTO clutch/brake is a part of an
agricultural tractor, both components of the PTO clutch/brake are
classifiable under chapter 85, HTSUS. Based upon Legal Note 2(f)
to Section XVII, HTSUS, the merchandise is precluded from
classification under heading 8708, HTSUS.
HOLDING:
Under the authority of GRI 1 and Legal Note 3 to Section
XVI, the PTO clutch/brake is provided for in heading 8505, HTSUS.
It is classifiable under subheading 8505.20.00, HTSUS, which
provides for electromagnetic couplings, clutches and brakes.
Goods classifiable under this provision have a general, column
one rate of duty of 3.9 percent ad valorem.
The protest is DENIED. In accordance with Section 3A(11)(b)
of Customs Directive 099 3550-065, dated August 4, 1993, Subject:
Revised Protest Directive, this decision, together with the
Customs Form 19, should be mailed by your office to the
protestant no later than 60 days from the date of this letter.
Any reliquidation of the entry in accordance with the decision
must be accomplished prior to mailing of the decision. Sixty
days from the date of the decision the Office of Regulations and
Rulings will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS and the public
via the Diskette Subscription Service, Freedom of Information Act
and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division