CLA-2 CO:R:C:G 085703 JMH
Michael A. Johnson, Esq.
Sonnenberg, Anderson, O'Donnell & Rodriguez
200 West Adams Street
Suite 2625
Chicago, Illinois 60606
RE: Machine tool
Dear Mr. Johnson:
This is in response to your August 30, 1989, letter
requesting a classification ruling under the Harmonized Tariff
Schedule of the United States Annotated (HTSUSA) for a machine
tool from Japan.
FACTS:
The merchandise in question, the Yamaguchi Aluminum Wheel
Drilling Machine, Model YMV-60MW-E, has been manufactured to
Enshu Keigokin's (Japan) specifications. The machine is then
sold to Tohlease and subsequently leased to Enkei America, a
company related to Enshu Keigokin. Enkei America manufactures
wheels for road vehicles, and will use the machine in a wheel
manufacturing line. The machine is not for resale.
The machine is equipped with auxiliary drilling units which
are specially designed to perform a valve stem drilling
function, without removing the workpiece. The spindle speed on
the machine is 60-6000 RPM. A NT-40 taper spindle is used. The
table of the machine has been modified to accept a special wheel
jig base. The modified table is bolted to the linear guides and,
therefore, could be exchanged for a standard table by loosening
the bolts. The vertical column has been lengthened 250 mm for
the drilling function. The lengthened column does not make other
functions impossible. The spindle head, saddle, base and splash
guards are the standard machining center configuration.
In its condition as imported, the Yamaguchi machine does not
have an automatic tool changer (ATC). The machine's present
capabilities focus on drilling, but include limited milling,
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boring and other machining capabilities. Despite not currently
having an ATC, the machine's column is designed, cast, machined,
drilled and tapped to accept an ATC. The power supply for the
ATC is built into the ATC unit and then attached to the pneumatic
lines already on the machine. Replacing the software card is all
that remains to make the ATC operable once the ATC has been
mounted and wired.
The manuals shipped with the machine identify the machine,
as originally a "YMN-60MW Machining Center". The machine has
been specifically modified as reflected in the manual's
supplement. The manual and its supplement discuss the operation
and specifications of the ATC. Additionally, the electrical
diagrams and parts list detail the wiring and connectors for the
ATC.
ISSUE:
Whether the Yamaguchi machine tool is a "Machining center"
within heading 8457, HTSUSA, subject to the Voluntary Restraint
Agreement (VRA) with Japan; or a "Machine tool...for drilling"
within heading 8459, HTSUSA, not subject to any import
restrictions.
LAW AND ANALYSIS:
The classification of merchandise under the HTSUSA is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUSA, states in part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes...and according to the
following provisions." When reviewing the headings, the goods
are to be considered in their condition at the time of
importation. United States v. Citroen, 223 U.S. 407 at 415
(1911).
You acknowledge that the machine tool's original form was
of a machining center. You contend that because of the
modifications which have occurred, the machine tool, as imported,
is a drilling machine classifiable within heading 8459, HTSUSA.
We recognize that the Yamaguchi machine is fully prepared to
perform drilling functions. However, this machine has features
which extend its abilities beyond those of a mere drilling
machine. The modifications have not substantially nor
permanently altered the condition and character of the original
machining center. It is the opinion of this office that the
Yamaguchi Machine, Model YMV-60MW-E, as imported is a machining
center.
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Your proposed classification within heading 8459 competes
with heading 8457, HTSUSA. These headings describe:
8457 Machining centers, unit construction machines
(single station) and multistation transfer
machines, for working metal...
8457.10.00 Machining centers...
* * * * * * * * * * * * *
8459 Machine tools (including way-type unit head
machines) for drilling, boring, milling,
threading or tapping by removing metal, other
than lathes of heading 8458...
8459.21.00 Other drilling machines...
Chapter 84, Note 4, HTSUSA, states in relevant part:
Heading 8457 applies only to machine tools for working
metal (other than lathes) which can carry out different
types of machining operations either:
(a) By automatic tool change from a magazine or the
like in conformity with a machining program
(machining centers)...
Although the machine in question does not presently include
an ATC, it is a machine tool, run by a computer program and
prepared for an ATC. Two questions remain unanswered. The first
question is whether this machine tool is able to perform
"different types of machining operations." The second inquiry is
whether this machine tool may be classified as a machining center
despite not having an ATC.
Regarding the first question, you acknowledge that the
machine tool is built from the basic Yamaguchi machining center
model. This Yamaguchi machine tool has the spindle speed, taper
speed, spindle head, saddle, base and splash guards of a standard
machining center. The vertical column, table, and jig base are a
slight variation from a usual machining center. However, the
Customs official who examined the machine states that the taller
column would not prevent the spindle head from reaching other
workpieces as you claim. He also concluded that the table and
jig base, although specifically designed for drilling, were
removable and replaceable enabling more extensive alternative
operations. Company engineers present at the inspection
confirmed that this machine tool is able to perform several
functions. Therefore, we find no merit in your contentions that
the performance of other functions by this machine tool is
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impossible or impractical. Therefore, the modified machining
center remains capable of "carrying out different types of
machining operations..."
The second inquiry results from the fact that this machine
tool does not include an ATC. The Yamaguchi machine tool appears
to meet the definition of a machining center within Chapter 84,
Note 4. However, without the ATC the machine tool at most is an
unfinished or incomplete machining center. Since the machine
cannot be classified according to GRI 1, "the following
provisions" must be utilized. The GRI's are to be utilized in
sequential order. GRI 2(a) states in relevant 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...
The subject machine tool, according to the above, is only an
incomplete or unfinished machining center, if it has the
"essential character" of a complete or finished machining center.
You state that the machine was specifically designed for your
drilling purpose. However, this special machine was built to
standard machining center specifications. Not only has it
retained the appearance of a machining center, but is has been
designed and built so that it is prepared for the attachment of
an ATC. It is your contention that the ATC is not required for
your needs. Nevertheless, this machine tool is fully prepared
for the installation of an ATC. Furthermore, the manual and
supplement you presented at the Headquarters meeting, along with
the manual with the machine, describe the machining center's
abilities beyond mere drilling and detail the fittings for an ATC
and the process of incorporating the ATC. It is the opinion of
this office that this machine tool has the essential character of
a machining center.
The Yamaguchi YMV-60MW-E is an unfinished machining center
to be classified within subheading 8457.10.00, HTSUSA. In order
to import the machining center, the appropriate certification
must be supplied in accordance with the VRA with Japan.
HOLDING:
The Yamaguchi machine tool, model YMV-60MW-E, as imported,
is a machining center. The modifications which occurred have not
substantially altered the nature of the machine. This machine
tool is capable of performing different functions. Despite not
including an ATC at the time of importation, this machine tool
has the essential character of a machine tool, within the
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meaning of GRI 2(a), HTSUSA. It is an incomplete or unfinished
machining center properly classified within subheading
8457.10.00, HTSUSA.
The Yamaguchi machine tool must meet the requirements of the
VRA with Japan to be eligible for importation.
Sincerely,
John Durant, Director
Commercial Rulings Division