CLA-2 RR:TC:MM 958807 JAS
Port Director of Customs
200 Granby Street
Norfolk, VA 23510
RE: PRD 1401-95-100251; Press and Pre-Press Machines; Machinery
Used
In the Manufacture of Laminated Veneer Lumber; Machines
Imported in Separate
Shipments; Condition as Imported; United States v. Baldt
Anchor, Chain & Forge Division of Boston Metals Co.,
Franklin Industries, Inc. v. United States,
HQ 085252, HQ 954820; Section XVI, Note 2
Dear Port Director:
This is our decision on Protest 1401-95-100251, filed
against your action in classifying machines from Finland that
were disassembled for ease of transport, and the components of
which arrived in the customs territory of the United States in
different shipments. The entries were liquidated on August 25,
1995, and this protest timely filed on October 20, 1995.
FACTS:
Two machine tools used with other machines in a
laminated veneer lumber manufacturing operation, a pre-press
machine and a press machine, were broken down into components for
ease of shipment, and packed into thirteen (13) containers. The
containers were delivered to the port of export together.
However, due to heavy volume, not all of the containers were
shipped on the same vessel. Consequently, eight containers were
imported on one day and the remaining five on another day.
The machines were entered under a provision in heading
8465, Harmonized Tariff Schedule of the United States (HTSUS), as
machine tools for working wood. The importer's representative
maintains that under General Rule of Interpretation (GRI) 2(a),
HTSUS, each shipment is an unfinished article, imported
unassembled, having the essential character of a machine tool for
working wood. Protestant's representative cites the Harmonized
Commodity Description And Coding System Explanatory - 2 -
Notes (ENs) for Rule 2(a) which state, among other things, that
when complete or finished articles are presented unassembled or
disassembled it is usually for reasons such as requirements of
convenience of packing, handling or transport.
Machine components contained in eight containers were
imported on one day and components contained in five containers
were imported on another day. Your office determined that neither
shipment contained components that could be considered an
unfinished or incomplete article under GRI 2(a). Each entry was
liquidated under the appropriate provision in heading 8466, as
parts and accessories suitable for use solely or principally with
the machines of headings 8456 to 8465.
The provisions under consideration are as follows:
8465 Machine tools *** for working wood,
cork, bone, hard rubber, hard plastics or
similar hard materials:
Other:
8465.94.00 Bending or assembling
machines...3.4 percent
ad valorem
* * * *
8466 Parts and accessories suitable for use solely or
principally with the machines of headings 8456 to
8465 ***:
Other:
8466.92.50 Other...4.7 percent ad
valorem
ISSUE:
Whether the components in either or both importations
constitute incomplete or unfinished articles, entered
unassembled.
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) in accordance with the
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 references in a heading
to an article shall be taken to include incomplete or - 3 -
unfinished articles provided that, as entered, the incomplete or
unfinished article has the essential character of the complete or
finished article.
It is well settled that merchandise must be classified and
assessed with duty in its condition as imported. Components of a
machine that arrive within the customs territory on different
days cannot be aggregated for classification and appraisement
purposes under a single HTS provision. See United States v.
Baldt Anchor, Chain & Forge Division of Boston Metals Co., 59
CCPA 122, C.A.D. 1051, 429 F. 2d 1403 (1972), Franklin
Industries, Inc. v. United States, 1 C.I.T 349 (1981), HQ 085252,
dated September 29, 1989, and HQ 954820, dated December 13, 1993.
Your office has determined that under GRI 2(a) the
components in neither shipment constitutes an incomplete or
unfinished article, imported unassembled, having the essential
character of a complete or unfinished machine tool of heading
8465. No argument to the contrary has been presented. Moreover,
your office has determined that none of the components in either
shipment is a good included in any of the applicable headings of
chapters 84 or 85. See Section XVI, Note 2(a), HTSUS. The
components in each shipment were determined to be parts suitable
for use solely or principally with machine tools of heading 8465,
and were classified in heading 8466. See Section XVI, Note 2(b),
HTSUS.
HOLDING:
Under the authority of GRI 1, the components in each
shipment are provided for in heading 8466. They are classifiable
in subheading 8466.92.50, HTSUS.
The protest should be 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 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
Tariff Classification
Appeals Division