CLA-2 RR:CR:GC 963279 AML
Port Director of Customs
200 East Bay Street
Charleston, SC 29401
RE: Protest 1601-99-100175; Autefa POY/SDY Automated Handling System
Dear Port Director:
The following is our decision regarding protest 1601-99-100175, dated October 13, 1999, concerning your classification of the Autefa POY/SDY Automated Handling System pursuant to the Harmonized Tariff Schedule of the United States (HTSUS). Technical literature and photocopies of the system were provided for our consideration. Also considered was a supplemental submission dated March 6, 2001 showing details of the handling system.
FACTS:
Information provided with the protest describes the Autefa POY/SDY Automated Handling System as follows:
The Autefa Automated Handling System (“Autefa System” or “System”) consists of 5 major subsystems: a doffing system, a monorail transport system, a multi-tray storage system, a packing system and a supervisory control system. The doffer system is composed of 12 doffers, 6 dummy doff stations, 408 meters of top railing, and a serial interface and control system. The doffer system is apparently used to pick up bobbins (around which textile yarn has previously been wound) and load them onto a carrier.
The monorail transport system is composed of 80 monorail carriers, 1000 meters of railing, various switches, 3 lifts, 3 laser printing stations, 3 maintenance buggies, a maintenance position, operating accessories and a control system. It appears the monorail system is used to transport the bobbin carriers through an inspection area and then place the bobbins into trays and then the trays into a storage unit.
The multi-tray storage system contains numerous trays, 4 stacker cranes, 4 store-in stations, a conveyor, 4 manual pick-up positions, 4 double shuttles, 2
unloading robots and 2 control systems. It assists in the process of loading, storing, and unloading the trays of bobbins.
The packing system consists of 2 packing robots, a film bagging machine, 2 conveyors and 2 bar code scanners. It enables the bobbins to be marked, bagged and/or boxed.
The supervisory control system, while mentioned, was not described in detail. The hardware and software necessary for this system is included in the Autefa system.
The products were entered in four separate shipments between September and November 1998, and the entries were liquidated on July 16, August 6 and September 24, 1999. The protest was filed on October 13, 1999. The products were classified at liquidation as parts of winding and reeling machines under subheading 8448.39.50, HTSUS.
ISSUE:
Whether the Autefa POY/SDY Automated Handling System is classifiable under subheading 8428.39.00, HTSUS other lifting, handling, loading or unloading machinery (for example, elevators, escalators, conveyors, teleferics); other continuous-action elevators and conveyors, for goods or materials: other machinery: other; subheading 8431.39.80, HTSUS, as other parts suitable for use solely or principally with the machinery of headings 8425 to 8430: other: other; or subheading 8448.39.50, HTSUS, as other parts of winding or reeling machines?
LAW and ANALYSIS:
Initially we note that the protest was timely filed and the matter protested is protestable (see 19 U.S.C. §1514(a)(2) and (5)).
Classification of imported merchandise is accomplished pursuant to the Harmonized Tariff Schedule of the United States (HTSUS). Classification under the HTSUS is guided by the General Rules of Interpretation of the Harmonized System (GRIs). GRI 1, HTSUS, 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[.]”
The HTSUS provisions under consideration are as follows:
8428 Other lifting, handling, loading or unloading machinery (for example, elevators, escalators,
conveyors, teleferics):
Other continuous-action elevators and conveyors, for goods or materials:
8428.39.00 Other:
8428.90.00 Other machinery:
8428.90.80 Other.
* * *
8431 Parts suitable for use solely or principally with the machinery of headings 8425 to 8430:
Of machinery of heading 8428:
8431.39.00 Other.
* * *
8448 Auxiliary machinery for use with machines of heading 8444, 8445, 8446 or 8447 (for example,
dobbies, Jacquards, automatic stop motions and shuttle changing mechanisms); parts and
accessories suitable for use solely or principally with the machines of this heading or of heading
8444, 8445, 8446 or 8447 (for example, spindles and spindle flyers, card clothing, combs,
extruding nipples, shuttles, healds and heald-frames, hosiery needles):
Parts and accessories of machines of heading 8445 or of their auxiliary machinery:
8448.39 Other:
8448.39.50 Parts of winding or reeling machines.
The protestant claims that the articles are alternatively classifiable under either subheading 8431.39.00, HTSUS, as parts of machines of heading 8428, or under subheading 8428.90.80, HTSUS, as other lifting, handling, loading or unloading machinery, other continuous action elevators and conveyors, for goods or materials, other machinery, other. The protestant bases these arguments on its interpretations of notes 3 and 4 to Section XVI, HTSUS, the Chapter Notes and ENs to chapter 84 and the pertinent headings, respectively.
When interpreting and implementing the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, while neither legally binding nor dispositive, provide a guiding commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. Customs believes the ENs should always be consulted. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
Note 2 to Section XVI provides, in pertinent part that:
2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading No. 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classified according to the following rules:
(a) Parts which are goods included in any of the headings of Chapters 84
and 85 (other than headings Nos. 84.09, 84.31, 84.48, 84.66, 84.73, 84.85, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in their respective headings;
(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading No. 84.79 or 85.43) are to be classified with the machines of
that kind or in heading No. 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29 or 85.38 as appropriate. However, parts which are equally suitable for use
principally with the goods of headings Nos. 85.17 and 85.25 to 85.28 are to be classified in heading No. 85.17;
(c) All other parts are to be classified in heading No. 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29 or 85.38 as appropriate or, failing that, in
heading No. 84.85 or 85.48.
Subject to certain exceptions not relevant here, goods that are identifiable parts of machines or apparatus of Chapter 84 or Chapter 85 are classifiable in accordance with Section XVI, Note 2, HTSUS. Nidec Corporation v. United States, 861 F. Supp. 136, aff'd, 68 F. 3d 1333 (1995). Parts, which are goods included in any of the headings of Chapters 84 and 85, are in all cases to be classified in their respective headings. See Note 2(a). Other parts, if suitable for use solely or principally with a particular machine, or with a number of machines of the same heading, are to be classified with the machines of that kind. See Note 2(b).
Note 4, Section XVI, HTSUS, provides that:
Where a machine (including a combination of machines) consists of individual components (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 chapter 85, then the whole falls to be classified in the heading appropriate to that function.
The protestant contends that the machines and five systems described above are parts of a handling system, which interconnect to perform the handling function. That is, the individual components combine to contribute together to a clearly defined function covered by either heading 8428 or 8431, HTSUS, and the whole should be classified in that heading, pursuant to Note 4, Section XVI, HTSUS. In applying Note 4, Section XVI, HTSUS, Customs has repeatedly noted that there are neither Legal Notes nor ENs that provide for "unfinished functional units" or "parts of functional units". The fact that several machines, if imported together, would be classified under a single heading as a "functional unit" does not mean that the same would hold true if they were, as in this matter, imported separately. (See, e.g., HQs 087077 dated March 27, 1991; 950218 dated April 17, 1992; 957326 dated July 17, 1995; 961003 dated June 10, 1998; 962105 dated April 22, 1999; and 963027 dated September 9, 1999.) This is particularly true when, as in this case, the machines and components were separately imported in the protested entries and do not include the machine(s) or component(s) which give the complete or finished article its essential character (i.e., that of a handling system/machine) (see GRI 2(a)). When imported separately, the machines must be individually classified and classification in heading 8428 or 8431, HTSUS, by virtue of Note 4, Schedule XVI, HTSUS, is precluded.
Note 3, Section XVI, HTSUS, provides, in part:
Unless the context otherwise requires ... machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified ... as being that machine which performs the principal function.
"Principal" is defined as "first in rank, authority, importance, degree, etc."
(Webster’s New World Dictionary of American English, 3rd Coll. Ed. (1988), 1070). We conclude that the most important function of the Autefa System is the loading, movement and packaging for shipment of bobbins. The other functions are subsidiary to, preparatory for, or are continuations of this function.
The function of the Autefa System is to reel textile filament yarn onto bobbins and convey the bobbins for packaging and shipment. Each of these functions is encompassed within the language of heading 8448, HTSUS (see also EN 84.48, which [under “(A) AUXILIARY MACHINERY”] provides that “this group includes: (1) [a]uxiliary machines for use with textile spinning machines, for example, automatic devices which remove fully wound reels and replace them with empty ones, and mobile appliances for setting up rows of empty reels.” The articles as entered perform similar functions. The Autefa System is classifiable under heading 8448, HTSUS, as auxiliary machines for use with the machines of headings 8444, 8445 and 8446, HTSUS.
HOLDING:
The automatic handling system is classifiable under subheading 8448.39.50, HTSUS, which provides for parts of winding or reeling machines.
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, this decision, together with Customs Form 19, should be mailed by your office to the protestant no later than sixty (60) days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of this
decision. Sixty (60) days from the date of this 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 the public via the Diskette Subscription Service, the World Wide Web at www.customs.treas.gov, and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division