CLA-2:CO:R:C:G 085393 JMH
TARIFF NO.S: 8208.20.00; 8466.10.00
Mr. Joe Spiegel
Onsrud Cutter Inc.
800 Liberty Drive
P.O. Box 550
Libertyville, IL 60048
RE: Cutterhead, machine tool
Dear Mr. Spiegel:
Your letter of July 20, 1989 to our New York office
requesting a ruling under the Harmonized Tariff Schedule of the
United States (HTSUSA) has been forwarded to this office for a
reply.
FACTS:
The merchandise is known as the TERSA cutterhead and will be
used with industrial planers, joiners, shapers, and for other
woodworking functions. It is designed to be tolerance fit over a
specific machines's spindle. This cutterhead has been described
to us as a composition of parts. Steel washers are pressed over
a central aluminum alloy core. The core houses two press-fit and
glued bushings. Washers are precisely located by two keyway
slots milled into the core OD, 180 degrees apart and parallel to
the bushing bore. Washers are stacked the entire length of the
core to form the cutting edge length, the cutting edge diameter
and the knife port. End pieces serve to retain the washers and
to identify the tool dimensions.
The cutterhead's knives are double sided and made of high
speed steel or tungsten carbide. They are intended to be
discarded after use. Four knives are included with each
imported cutterhead. Replacement knives will be imported
separately in bulk.
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ISSUE:
What is the appropriate classification of the TERSA
cutterhead?
LAW AND ANALYSIS:
According to General Rule of Interpretation 1 of the HTSUSA,
classification of goods is "determined according to the terms of
the heading and any relative section or chapter notes." We
cannot agree with your suggestion that the TERSA cutterhead is
classified under heading 8208.20, HTSUSA, because the cutterhead
acts as a holder for the knife or cutting blade. Thus, the
imported article consists of a holder and blades not just blades.
The TERSA cutterhead holds the knives and permits their
interchange, thereby functioning as a tool holder. Explanatory
Note 84.66 (1) of the Harmonized Commodity Description and Coding
System, Vol. 3, p. 1288, defines tool holders as articles "which
hold, guide or operate the working tool and which permit the
interchange of such tool-pieces."
The applicable classification for the TERSA cutterhead and
its four original knives is subheading 8466.10.00, HTSUSA. This
subheading describes "parts and accessories suitable for use
solely or principally with the machines of headings 8456 to 8465,
including work or tool holders..." Woodworking machines are
included in heading 8465, HTSUSA. The rate of duty for the
cutterhead and four knives will be 4.9 percent ad valorem.
The suggested subheading 8208.20.00, HTSUSA, is the proper
classification for the replacement knives to be imported
separately in bulk. Explanatory Notes 82.08 states the heading
applies to "unmounted knives or cutting blades...for machines or
other mechanical appliances." The rate of duty for the
replacement knives is 3.7 percent ad valorem.
HOLDING:
The TERSA cutterhead is a tool holder for tariff purposes
and classified with its four knives under 8466.10.00, HTSUSA.
The cutterhead is dutiable at 4.9 percent ad valorem. The
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replacement knives to be shipped separately in bulk are
classified under 8208.20.00, HTSUSA, and dutiable at 3.7 percent
ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division