CLA-2 RR:TC:MM 959656 JAS
Erick D. Smithweiss, Esq.
Grunfeld, Desiderio, Lebowitz & Silverman LLP
245 Park Avenue
New York, NY 10167-0002
RE: Machinery for Preparing Metal Cylinders for use in Rotogravure Printing Press, Heading 8442; Consolidated
International Equipment & Supply Co. v. U.S., Metal Cylinder Engraving Machine; Scanner, Control Unit and Engraving Machine, Functional Unit, Section XVI, Note 4; Machine Tool for Removing Metal, Engraving Machine, Heading 8461, EN 84.61; NY 803750
Dear Mr. Smithweiss:
Your letter to the Area Director of Customs, New York
Seaport, dated August 6, 1996, on behalf of Linotype-Hell
Company, concerning the tariff status of the Helio-Klischograph
model K302, a machine for preparing printing cylinders for use in
rotogravure printing presses, has been referred to this office.
You submitted a representative photograph of the K302. You
presented oral arguments at a meeting in our office on April 1,
1997.
FACTS:
The Helio-Klischograph model K302 consists of three (3) main
components, a scanner, control unit and engraver, all of which
function together to compose text and images and transfer them
onto the printing cylinder. The scanner is a large drum which
incorporates a number of scanning heads, each with incandescent
lamps and lenses that project light. The pages to be scanned are
placed on the drum and the drum rotated. As a page is scanned
the photo-diodes detect the intensity of the reflected light from
the page in the form of analog signals which are converted to
digital signals and transmitted to the control unit. The control
unit incorporates a computer, several control cabinets, monitor
and a keyboard. In addition to storing the digital signals - 2 -
received from the scanner, the control unit allows the user to
vary the density or tones of the images being reproduced and,
thus, to compose the text and images that will be reproduced on
the printing cylinder. An engraving amplifier in the control
unit converts the composed text and images from digital to analog
format which it sends to any of the eight engraving heads on the
engraving machine and directs the diamond stylus on each head to
make the desired cuts in the surface of the cylinder.
You maintain that the K302 is a functional unit, as defined
by Section XVI, Note 4, Harmonized Tariff Schedule of the United
States (HTSUS), the principal function of which is to prepare
printing cylinders as described above, a function described by
HTS heading 8442. As such, you state that General Rule of
Interpretation (GRI) 1, HTSUS, requires classification of the
K302 in heading 8442.
The provisions under consideration are as follows:
8442 Machinery...for preparing or making printing...cylinders or other printing components; parts thereof:
8442.30.00 Other machinery...Free
* * * *
8461 [o]ther machine tools working by removing metal, not elsewhere specified or included:
8461.90 Other:
8461.90.40 Numerically controlled...4.4 percent ad valorem
8461.90.80 Other...4.4 percent ad valorem
ISSUE:
Whether the Helio-Klischograph K302 is machinery for
preparing or making printing cylinders or other printing
components; whether it is a machine tool or performs a machine
tool function.
- 3 -
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 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 ENs should always be consulted. See T.D. 89-80. 54 Fed. Reg.
35127, 35128 (Aug. 23, 1989).
Section XVI, Note 4, HTSUS, states, in relevant part, that a
combination of machines, whether separate or interconnected by
piping, by transmission devices, by electric cables or by other
devices, intended to contribute together to a clearly defined
function covered by one of the headings in chapter 84 or 85, are
to be classified in the heading appropriate to that function.
Without further elaboration, we agree that the K302 is a
functional unit for tariff purposes. Without deciding whether
the "function" the K302 performs is preparing or making printing
cylinders as opposed to engraving the printing cylinder, by its
own terms heading 8442 excludes machine tools of headings 8456 to
8465.
You cite Consolidated International Equipment & Supply Co.,
v. United States, 60 Cust. Ct. 134, C.D. 3290 (1968), in which
the court held, among other things, that an earlier model of the
Helio-Klischograph K302 was not a machine tool under a previous
tariff nomenclature - the Tariff Act of 1930 - because it did not
"work" on metal in the sense intended by Congress, i.e., in the
manner of traditional machine tools, power-driven machines
utilizing tools that work on metal, such as lathes, milling,
drilling and grinding machines enumerated in relevant portions of
the Summary of Tariff Information. As you know, judicial
decisions under a previous Nomenclature may be instructive on a
case-by-case basis, particularly where the - 4 -
Nomenclature previously interpreted remains unchanged and no
dissimilar interpretation is required by the text of the HTSUS.
In this case, the text of the HTSUS may require a dissimilar
interpretation.
In addition, you note that relevant heading 8442 ENs at p.
1234 describe machines and apparatus used to make printing
cylinders and other printing parts or used to assemble (compose
or set) it for use in printing. Other ENs at p. 1236 describe,
under heading 8442, machines for making printing plates by direct
reproduction from a document in which a photocell scans the
document, and impulses transmitted by an electronic device from
that cell activate a tool which engraves a plate of plastics.
You conclude that these notes sanction engraving as part of a
process used to prepare or make printing cylinders. However, the
same ENs, at p. 1338, under (h), exclude from heading 8442 metal
working machine tools, to include engraving machines, among
others. Because of this apparent conflict, we conclude that the
cited ENs offer no guidance in this case.
On the other hand, the ENs, at pp. 1276 and 1278, state only
that machine-tools of heading 8461 work by removing metal, but
specifically include engraving machines other than those of
headings 8459 or 8460. The term engrave is defined neither in an
HTSUS legal note nor an EN. In common meaning, the term means
to carve, cut or etch into a material, in particular, a block or
printing surface. In fact, literature describes computer-controlled stylus-based systems used in marking parts with dates,
codes and other identifying information, that are substantially
similar in terms of technology to the machine in issue here, as
involving a recognized engraving process. The Helio-Klischograph
model K302 performs an engraving function appropriate to machine
tools of heading 8461. By its own terms, heading 8442 is
eliminated from consideration. NY 803750, dated November 23,
1994, classified an identical machine in subheading 8461.90.40,
HTSUS.
HOLDING:
Under the authority of GRI 1, the Helio-Klischograph model
K302 is provided for in heading 8461. It is classifiable in - 5 -
subheading 8461.90.40, HTSUS, if numerically controlled, or in
subheading 8461.90.80, HTSUS, if not numerically controlled. The
rate of duty under both provisions is 4.4 percent ad valorem.
Sincerely,
John Durant, Director
Tariff Classification
Appeals Division