CLA-2:CO:R:C:M 955700 JAS
District Director of Customs
423 Canal Street, Rm. 245
New Orleans, LA. 70130
RE: PRD 2002-93-101453; Parts of Casting Machines, Subheading
8454.90.00; Slip Op. 93-161; Motors, Heading 8412, Sprayers,
Heading 8424, Conveyors, Other Handling Machinery, Heading
8428, Gear Boxes, Speed Changers, Heading 8483, Section XVI,
Note 2(a) and General Explanatory Note; HQ 952019,
HQ 952743, HQ 954942
Dear District Director:
This is our decision on Protest No. 2002-93-101453, filed
against your action in classifying machines, components and
apparatus from Japan used in a continuous steel caster. The
merchandise was imported in multiple shipments and the entries
were liquidated on June 4 and July 2, 1993. This protest was
timely filed on August 31, 1993.
FACTS:
The approximately one hundred thirteen (113) articles under
protest were entered under the duty-free provision in heading
8454 for parts of casting machines. The import specialist noted
that most of these components were provided for in provisions
believed to be more specific than the entered provision, and
liquidated the entries accordingly. For example, various storage
racks, stands and platforms were reclassified as articles of iron
or steel under heading 7326; drive motors were reclassified under
heading 8412; machinery for weighing both the molten metal and
the cast product under heading 8423; piping for sprayers as parts
under heading 8424; ladle turret, tundish transfer car, lifting
beams and roller tables as conveyors and other material handling
devices under heading 8428, and related rollers and roll
assemblies as parts, under heading 8431; drive units, gear
couplings and reducers under heading 8483; deburring tables as
machine tools under heading 8460; molds and mold covers as molds
for metal under heading 8480; various hand tools as wrenches
under heading 8204; signs and name plates under heading 8310; and
quality control apparatus as measuring and checking instruments
in heading 9031. - 2 -
The provisions under consideration include but are not
limited to the following:
7326 Other articles of iron or steel:
7326.90 Other:
Other:
7326.90.90 Other...5.7 percent
* * * *
8412 Other engines and motors:
Hydraulic power engines and motors:
8412.21.00 Linear acting (cylinders)
...3.4 percent
* * * *
8424 Mechanical appliances for spraying liquids
or powders; parts thereof:
8424.90 Parts:
8424.90.90 Other...3.7 percent
* * * *
8428 Other lifting, handling, loading or
unloading machinery:
8428.39.00 Other conveyors...2 percent
8428.90.00 Other machinery...2 percent
* * * *
8431 Parts suitable for use solely or principally
with the machinery of heading [8428]:
8431.39.00 Other...2 percent
* * * *
8454 Casting machines and parts thereof:
8454.90.0 Parts...Free - 3 -
* * * *
8480 Molding boxes for metal foundry; mold
bases: molds for metal (other than ingot
molds), metal carbides glass, etc.:
Molds for metal or metal carbides:
8480.49.00 Other types...3.9 percent
* * * *
8483 Gear boxes and other speed changers:
8483.40.50 Other...2.5 percent
* * * *
9031 Measuring and checking instruments, appliances
and machines:
9031.80.00 Other instruments, appliances and
machines...4.9 percent
ISSUE:
Whether the machines, components and apparatus are goods
included in headings of chapters 84 and 85; whether they are
provided for as parts of casting machines in heading 8454.
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.
The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the Customs Cooperation
Council's official interpretation of the Harmonized system.
While not legally binding on the contracting parties, and
therefore not dispositive, the ENs provide a commentary on the
scope of each heading of the Harmonized System and are thus
useful in ascertaining the classification of merchandise under
the System. Customs believes the notes should always be
consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23,
1989). - 4 -
Counsel for protestant maintains that these components are
classified as parts of casting machines, in subheading
8454.90.00, HTSUS, for two reasons. First, he argues that
because these components are uniquely designed for use in a
specific continuous caster, they meet the sole or principal use
test for parts in Additional U.S. Rule 1(c), HTSUS. Second,
based on a 1993 court decision on substantially similar
merchandise under the HTSUS predecessor tariff code, the Tariff
Schedules of the United States (TSUS), counsel contends that the
provisions under which Customs classified the components in this
case are not "specific" for purposes of Rule 1(c).
It is important to note that the Additional U.S. Rules of
Interpretation apply in the absence of special language or
context which otherwise requires. In accordance with GRI 1, the
terms of the headings and any relative section or chapter notes
are the first and primary consideration in classifying
merchandise under the HTSUS. Accordingly, Customs has
consistently held that goods which are parts of machines or
apparatus of chapters 84 and 85 are to be classified in
accordance with Section XVI, Note 2, HTSUS. HQ 952019, dated
March 18, 1993, and related cases. This is special language or
context that precludes the application of Rule 1(c). Parts which
are goods included in any of the headings of chapters 84 or 85
are in all cases to be classified in their respective headings
(emphasis added). Note 2(a). Other parts suitable for use
solely or principally with a particular kind of machine, or with
a number of machines of the same heading, are to be classified
with the machines of that kind. Note 2(b). Therefore, as to
counsel's first argument, notwithstanding the machines and
components under protest may be principally used with casting
machines, they are to be classified in the heading(s) under which
they are included.
Counsel's second argument is based on the court's decision
in Mitsubishi International Corp. v. United States, 17 CIT ,
Slip Op. 93-161, decided August 12, 1993. In that case machines,
components and apparatus for casting machines, similar to the
ones in this protest, were held to be classified in item 674.10,
TSUS, as parts of casting machines. The court rejected item
664.10, TSUS, a provision for other lifting, handling, loading or
unloading machinery, as relied on by Customs for many of the
material handling devices, as not satisfying the specificity
requirement of General Rule of Interpretation 10(ij), TSUS. In
addition, the court rejected the remaining "specific" provisions
relied on by Customs because the machines and components were
said to possess significant additional features and, therefore,
were "more than" the goods encompassed by the terms of the
liquidated provisions. Judicial decisions under the TSUS are to
be considered instructive in interpreting the HTS only where the
nomenclature remains unchanged and no dissimilar interpretation
is required by the text of the HTS. While TSUS Rule 10(ij) - 5 -
states that a parts provision shall not prevail over a specific
provision, there is no such specificity requirement in Note 2(a),
which requires only that a part be a good "included" in a heading
of chapter 84 or 85. Therefore, because there has been a change
in the text of the HTSUS, Mitsubishi is not considered
instructive here.
As to the applicability of heading 8428, the relevant EN on
Note 2, at p. 1131, lists lifting and handling machinery (heading
84.25, 84.26 or 84.28) as articles that in all cases are to be
classified in their own appropriate heading even if specially
designed to work as part of a specific machine. Except for the
following, counsel has not sufficiently demonstrated that the
remaining machines and components possess a significant
additional function or functions sufficient to remove them from
"inclusion" in the provisions under which they were classified in
liquidation.
The weighing machinery classified eo nomine in subheading
8423.82.00 is in fact a roller conveyor to which the weighing
machine was added after importation. This article is to be
reclassified in subheading 8428.39.00. Under Note 2(b) the
tundish overflow troughs, storage racks, stands and platforms
classified in subheading 7326.90.90 are to be reclassified in
subheading 8454.90.00. The cooling fans liquidated under
subheading 7326.90.90 are to be reclassified eo nomine under
subheading 8414.59.60. The molds cannot be classified in
subheading 8480.49.00 as liquidated. HQ 952743, dated February
16, 1993. They are to reclassified in subheading 8454.90.00.
Reducers for the torch roller tables and the torch runout tables
are not gearboxes of subheading 8483.40.50; rather, because they
are only rollers with couplings attached they are classified in
subheading 8431.39.00.
HOLDING:
Under the authority of GRI 1, the tundish overflow troughs,
storage racks, stands and platforms and the molds are to be
reclassified under subheading 8454.90.00. The protest is ALLOWED
as to this merchandise. The roller conveyor, thought initially
to be weighing machinery, the cooling fans, and the reducers with
couplings for torch roller tables and torch runout tables are to
be reclassified as indicated. Because the rates under these
provisions are less than the liquidated rates but more than the
claimed rates the protest is ALLOWED IN PART as to this
merchandise based on the reclassifications. As to the remaining
merchandise 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, you should mail this decision, together with the
Customs Form 19, to the protestant no later than 60 days from the - 6 -
date of this letter. Any reliquidation of the entry or entries
in accordance with the decision must be accomplished prior to
mailing 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 to the public via the Diskette Subscription
Service, the Freedom of Information Act and other public access
channels.
Sincerely,
John Durant, Director
Commercial Rulings Division