CLA-2:CO:R:C:M 952404 JAS
Mr. Richard W. Leonhard
Southwestern Industries, Inc.
2605 Homestead Place
Rancho Dominguez, CA 90220
RE: Horizontal Lathe, Numerically Controlled; Heading 8458;
Machine Tool Minus Apron, Lead Screw, Gear Box, Hand Wheels
and Tool Compound; Unfinished Machine Tool for Working
Metal; Parts and Accessories of Machine Tools; Heading
8466
Dear Mr. Leonhard:
Your letters of July 2 and 13, 1992, to the Area Director of
Customs, New York Seaport, inquiring as to the tariff status of
the LUX-Matter 1540 horizontal lathe, imported from Taiwan minus
various components, have been forwarded to this office for reply.
Our ruling follows.
FACTS:
The merchandise in issue is a manually operated horizontal
lathe. It is imported without certain components but is said to be
fully functional. The machine tool in issue will be completed in
the United States by adding the following components with their
cost or value in parenthesis: computer numerical control ($1200),
double wall apron fabricated from sheet metal and handwheel
assembly ($2000), two motors with servo drive ($800), ballscrews
($1200). You estimate the cost of assembling these components with
the imported components at $2100.
You state that the lathe is not numerically controlled and
has not been prepared to accept numerical. control. Its surfaces
have not been faced, i.e., machined to allow for the future
mounting of drive motors and feedback devices required for
numerical control. It is indicated that multiple holes must be
drilled or tapped in order to install the numerical control. A
separate channel will also be carved out near the carriage for oil
lines.
- 2 -
Engine lathes or toolroom lathes are principally used in the
United States in small shops for turning operations, i.e.,
removing metal from the outside diameter of small parts.
ISSUE:
Whether the imported merchandise comprises an unfinished lathe
of heading 8458 for tariff purposes.
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) in accordance with the
General Rules of Interpretation (GRIs). GRI 1 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 provided the headings or notes do not require
otherwise, according to GRIs 2 through 6.
GRI 2(a) states in part that any reference in a heading to
an article includes a reference to the article incomplete or
unfinished, provided that, as entered, the incomplete or
unfinished article has the essential character of the complete or
finished article.
The function of an engine or toolroom lathe is to remove
metal from the outside diameter of a workpiece. Such lathes must
have at least certain basic components such as the bed, head-stock, tailstock, carriage and cross slide, all referred to
collectively as the machine's "iron." In operation, the workpiece
is held between a center on the tailstock and an appropriate work
holding device on the headstock spindle. The tool is secured to a
cross slide which is mounted on a carriage that moves
longitudinally along the bed of the machine.
The imported lathe includes all of the components necessary
to perform a turning function; it has the aggregate of distinctive
component parts that establish the article's identity as an engine
lathe. The imported article, therefore, has the essential
character of a lathe for removing metal of the type classifiable
in heading 8458. For this reason, it is not classifiable as a part
or accessory for a lathe.
Subheading 8458.11.00 provides for numerically controlled
horizontal lathes while subheading 8458.19.00 covers other
horizontal lathes. Numerical control enables a machine tool to
carry out machining operations according to a program of
numerically-coded instructions. The input data is interpreted by
the control system and transformed into mechanical movements of
the machine. The omitted parts indicate an intent to add numerical
control. However, as stated previously, there is no evidence that
the lathe, as imported, has been prepared in anyway to accept
numberical control. Thus, there is no
- 3 -
issue of whether the imported lathe may be unfinished for purposes
of subheading 8458.11.00. This provision is eliminated from
consideration.
HOLDING:
Under GRI 1, the unfinished LUX-Matter 1540 horizontal lathe
is provided for in heading 8458. Actual classification is in
subheading 8458.19.00, HTSUS, as other horizontal lathes for
removing metal. The rate of duty on products from Taiwan is 4.4
percent ad valorem.
We are informed that machine tools from Taiwan classifiable
in subheading 8458.19.00 are not subject to quantitative
restraints. You may confirm this by writing directly to the
Director, Office of Agreements Compliance, Department of Commerce,
Washington, D.C. 20230. We are providing that office with a copy
of this ruling.
Sincerely,
John Durant, Director
Commercial Rulings Division