CLA-2 RR:CR:GC 961914 JAS
Port Director of Customs
2nd & Chestnut Sts.
Philadelphia, PA 19106
RE: PRD 1101-97-100265; Roll Grinding Lathe and Drive, Mercury Spring Thermometer, Flow Controller, Ball Cock with Tube Connector, Pyrometer, Power Supply, Color Monitor, Signal Lamp; Control Station; Parts of Metal-Rolling Mills, Subheading 8455.90.80; Commingling of Merchandise, General Note 17, HTSUS, Section 152.13, Customs Regulations; Composite Machine, Functional Unit, Section XVI, Notes 3 and 4; HQ 957150, HQ 958641
Dear Port Director:
This is our decision on Protest 1101-97-100265, filed against your classification under the Harmonized Tariff Schedule of the United States (HTSUS) of certain parts and components for metal-rolling mills. The entry under protest was liquidated on February 7, 1997, and this protest timely filed on April 29, 1997.
FACTS:
The merchandise in issue is parts and components used with rolling mills, which are metal working machines which utilize multiple rollers mounted on stands to produce steel in the form of ingots, blooms and billets, slabs, sheet, bars and rod, among others. The only description of these articles appears briefly on individual pages of the packing list. Among the articles are a roll grinding lathe and its drive mechanism, mercury spring thermometer, flow controller, ball cock with tube connector, pyrometer, power supply, tool set, color monitor, signal lamp, converter for printer, control station, keyboard, video cable, hoses and cables.
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This merchandise was entered under the provision in heading 8455, HTSUS, for other parts of metal-rolling mills. Counsel for the protestant supports this classification by claiming alternative compliance with Section XVI, Notes 3 and 4, HTSUS. You determined that these disparate parts and components constituted commingled merchandise under General Note 17, HTSUS, and liquidated the entry at the rate applicable to the control station, which was provided for in heading 8537, HTSUS.
The provisions under consideration are as follows:
8455 Metal-rolling mills and rolls therefor; parts thereof:
8455.90 Other parts:
8455.90.80 Other
* * * *
8537 Boards, panels, consoles...cabinets and other bases...for electric control or the distribution of electricity...:
8537.10 For a voltage not exceeding 1,000 V:
8537.10.90 Other
ISSUE:
Whether the parts and components, as described, qualify either as composite machines or as functional units of Section XVI.
LAW AND ANALYSIS:
Under General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), goods are to be classified 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.
By Customs Form 29, dated December 19, 1996, your office notified the importer, as required by General Note 17(b), HTSUS, and section 152.13(a), Customs Regulations, that the goods were considered commingled, and the entry was being rate advanced
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under subheading 8537.10.90, HTSUS, as a control station. As the importer did not avail himself of the options available under section 152.13(c) of the regulations, within the time period specified in that provision, you liquidated the entry under subheading 8537.10.90.
Counsel for the protestant supports classification under subheading 8544.90.80 by claiming the parts and components constitute either a composite machine or a functional unit, under Section XVI, Notes 3 and 4, HTSUS, respectively. A review of the invoice and the packing list indicates that the parts and components in issue are neither a composite machine nor a functional unit. As to the first claim, Note 3 provides for composite machines and multi-function machines. There is no credible argument that the disparate parts and components in issue are “fitted together to form a whole,” or qualify as multi-function “machines,” as required under Note 3. See HQ 958641, dated April 29, 1996. As to the second claim, there is no evidence that the parts and components in issue constitute a complete or finished metal-rolling mill, imported unassembled. Customs has consistently held that there is no legal authority that provides for unfinished functional units. See HQ 957150, dated January 30, 1995, and cases cited.
HOLDING:
Under the authority of General Note 17(a), HTSUS, the parts and components for metal-rolling mills under protest are commingled goods. The highest rate of duty applicable to any part thereof is assessed on the control station under subheading 8537.10.90, 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 are to 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
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Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.ustreas.gov, by means the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division