CLA-2 RR:CTF:TCM H025103 JPJ
Marc A. Romano, LCB
Husky Injection Molding Systems, Inc.
55 Amherst Villa Road
Buffalo, NY 14225
RE: Iron Alloy Castings; NY M83570 Affirmed
Dear Mr. Romano:
In your letter, dated March 7, 2008, on behalf of Husky Injection Molding Systems, Inc. (Husky), you request reconsideration of NY M83570, which the Director, National Commodity Specialist Division, U.S. Customs and Border Protection (CBP), New York, New York, issued to Husky on June 13, 2006. In NY M83570, certain raw iron alloy castings were found to be classifiable in heading 8477, HTSUS, which provides for “Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof”. Husky maintains that the raw iron alloy castings are classifiable in heading 7325, HTSUS, as “Other cast articles of iron or steel”. We have considered your request and our decision follows.
FACTS:
The merchandise consists of raw ductile iron alloy castings of stationary platens, moving platens, injection housings, clamp cylinders, swivel beds and end caps, built to certain specifications and tolerances, but not fully milled, deburred, painted, etc. This is the condition of the merchandise as imported.
After importation, the merchandise is further processed by milling, cleaning and deburring. After the rough milling, finish milling, cleaning, and de-burring, the machined surfaces of the castings are bored. Holes must be bored into the castings for mounting, support, and integrated into an injection molding machine. After boring is complete, all holes are counter-bored. The castings are cleaned and de-burred again. After all tolerance levels are achieved through the machining process and quality inspection, the castings are painted and finished.
ISSUE:
Whether the merchandise is classified under heading 7325, HTSUS, as other cast articles of iron or steel, or under heading 8477, HTSUS, as parts of machinery for working rubber or plastics.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI’s). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied.
The HTSUS provisions under consideration are as follows:
Other cast articles of iron or steel:
* * *
Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof:
Parts:
* * *
Section XV Note 1(f), which includes chapter 73, provides, in relevant part:
This section does not cover:
* * *
(f) Articles of section XVI (machinery, mechanical appliances and electrical goods)
Section XVI, Note 2(a), HTSUS, provides, in pertinent part, that:
Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:
(a) Parts which are goods included in any of the headings of chapter 84 or 85 (other than heading 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;
(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517;
* * *
Additional U.S. Rule of Interpretation 1(c) states:
In the absence of special language or context which otherwise requires—
(c) a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for “parts” or “parts and accessories” shall not prevail over a specific provision for such part or accessory; . . .
* * *
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. Though not dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS. Customs and Border Protection (or CBP, as appropriate) believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
GRI 2 (a) states as follows:
(a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled.
The EN for GRI 2 (a) states as follows:
RULE 2 (a)
(Incomplete or unfinished articles)
* * *
(II) The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term “blank” means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part (e.g., bottle performs of plastics being intermediate products having tubular shape, with one closed end and one open end threaded to secure a screw type closure, the portion below the threaded end being intended to be expanded to a desired size and shape).
The decision in NY M83570 determined that, pursuant to GRI 2(a), each of the castings qualified as a “blank” for tariff purposes, in that each of the castings contained the essential character of a specific part of an injection molding machine. See also NY B82004 and NY D87287. Therefore, NY M83570 held that each of the castings qualified as a particular unfinished part of an injection molding machine of heading 8477, HTSUS.
Husky acknowledges that the subject merchandise are raw ductile iron alloy castings built to certain specifications and tolerances, but not fully milled, deburred, painted, etc. However, Husky argues that the merchandise is classifiable pursuant to GRI 1 in heading 7325, HTSUS, and that no GRI 2(a) analysis is required.
Husky’s reasoning is incorrect because it ignores exclusionary note 1(f) to Section XV. If the article is described in Section XVI, it cannot be classified elsewhere. Furthermore, the ENs to heading 7325 state, in relevant part, “This heading covers all cast articles of iron or steel, not elsewhere specified or included.” Therefore, we are required to determine whether a more specific provision of the Nomenclature exists before resorting to classification in heading 7325, HTSUS. The ENs to heading 7325 continue, “This heading does not cover castings which are products falling in other headings of the Nomenclature (e.g., recognizable parts of machinery or mechanical appliances). . .” Therefore, castings that are named in other headings within the tariff are excluded from classification in heading 7325.
Husky also argues that the classification of these parts under heading 8477 is specifically precluded by operation of Section XVI Note 2(a) of the HTSUS. Husky argues that pursuant to Section XVI Note 2(a), parts which are goods are in all cases to be classified in their respective headings. Husky is incorrect because the section note applies to goods of the section. Nidec Corporation v. United States, 861 F. Supp. 136 (Ct. Int’l Trade 1994), aff’d, 68 F. 3d 1333 (Fed. Cir. 1995). Section XVI, Note 2(a) means that certain parts are always classified in their own appropriate tariff heading in Section XVI, even if specially designed to work as a part of a specific machine. Heading 7325, HTSUS, is not a tariff heading of Section XVI, HTSUS; it is a tariff heading of Section XV, HTSUS. Therefore, the merchandise is not excluded from Section XVI (and chapter 84) by application of Section XVI, Note 2(a).
Although you do not mention the applicability of Additional U.S Rule of Interpretation 1(c) (AUSRI 1(c)), it states that “a provision for ‘parts’ or ‘parts and accessories’ shall not prevail over a specific provision for such part or accessory”. Here, heading 7325, HTSUS, is not a specific provision for castings. Therefore, AUSRI 1(c) does not direct the classification of the instant merchandise into heading 7325, HTSUS.
However, Section XVI Note 2(b) directs classification of the merchandise into the section. The merchandise is identifiable as parts of certain machinery because, under GRI 2(a), the headings include a reference to the unfinished article. Therefore, heading 8477, HTSUS, describes the articles by its terms and the merchandise cannot be classified outside of the section under Section XVI Note 2(a). Furthermore, heading 7325, HTSUS, cannot describe the merchandise since it is specified elsewhere and is also excluded by Note 1(f).
Lastly, Husky’s reference to the article published by the former U.S. Customs entitled “U.S. Customs Service Production Equipment Trade Educator” (PETE) by Alan Horowitz, dated November 1999, seems to support classification of the clamp cylinders in heading 8412, HTSUS, rather than heading 8477, HTSUS. Husky cites the PETE, Volume 2, Issue 2, dated November 1999, at page 4:
This note simply means that certain parts are always classified in their own appropriate tariff heading, even if specially designed to work as part of a specific machine. For example, clamp cylinders (a type of hydraulic unit used to move a clamp piston commonly found in plastic injection machines) despite being specifically listed as one of the machine parts under HTS 8477.90, must be classified under HTS 8412 by virtue of Section XVI Note 2(a).
However, the instant clamp cylinders, as shown in the pictures and diagrams, do not appear to be hydraulic or pneumatic. Without further evidence of certain information regarding the instant merchandise, classification of the clamp cylinders in heading 8412, HTSUS, is not supported.
Hence, the instant parts of machinery, for working rubber or plastics or for the manufacture of products from these materials and castings, are provided for eo nomine in subheading 8477.90, HTSUS, in accordance with previous rulings. See NY D87287 and NY B82004.
HOLDING:
In accordance with GRI 1 and 2(a), the stationary platens, moving platens, injection housings clamp cylinders, swivel beds and end caps are classified in heading 8477, HTSUS.
The stationary platens, moving platens, injection housings, and clamp cylinders are specifically provided for in subheading 8477.90.25, HTSUS as: “Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof: Parts: Base, bed, platen, clamp cylinder, ram, and injection castings, weldments and fabrications: Of machines of subheading 8477.10.30, 8477.10.40 or 8477.10.90. The 2006 general, column one rate of duty is 3.1% ad valorem.
The swivel beds and end caps are specifically provided for in subheading 8477.90.85, HTSUS as: “Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof: Parts: Other Of injection-molding machines. The 2006 general, column one rate of duty is 3.1% ad valorem.
Duty rates are provided for convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
NY M83570, dated June 13, 2006, is affirmed.
Sincerely,
Myles B. Harmon, Director Commercial and Trade Facilitation Division