CLA-2 RR:CR:GC 965394 RFA
Port Director
U.S. Customs Service
610 S. Canal St.
Chicago, IL 60607-4523
RE: Protest 3901-01-101451; Tape Feeders
Dear Port Director:
The following is our decision regarding Protest 3901-01-101451, which concerns the classification of Tape Feeders under the Harmonized Tariff Schedule of the United States (HTSUS). In preparing this decision, we also considered the information provided by counsel in our telephone conference of August 28, 2002, as well as their additional submission dated September 4, 2002.
FACTS:
The subject merchandise consist of three types of tape feeders which are used to feed components, referred to as surface mount devices, to placement machines which assemble them onto a printed circuit board (PCB). These components, consisting of resistors, capacitors, integrated circuits, and similar electrical devices, arrive at the placement machine affixed into a series of pockets in a paper or plastic tape, which has been wound onto a reel. For the standard feeder the placement machine operator mounts the reel onto the feeder. The tape containing the components is then threaded through the feeder, and the feeder is snapped into position on the placement machine. Following the instructions of its program, the placement machine will depress a lever on the feeder to mechanically advance the tape one pocket, thus exposing a component for pickup off the tape and placement onto the PCB by the placement machine.
The motor feeder performs the same function as the standard feeder, but incorporates a small stepper motor to advance the tape forward. The power feeder is similar to the motor feeder, and also contains an electric cable that allows the power feeder to communicate with the placement machine regarding the type of component mounted on the feeder, the feeder serial number, and the number of placements which have occurred. This data is passed from the placement machine through a LAN network to a central computer, and is used for quality control and inventory purposes.
The merchandise was entered in 2000 under subheading 8479.90.95, HTSUS, as parts of other machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter. The entries were liquidated on May 18, June 22, July 13, and August 10, 2001, under subheading 8479.89.97, HTSUS, as other machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter. The protest was timely filed on August 16, 2001.
The HTSUS provisions under consideration are as follows:
8479: Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof:
8479.89.97: Other machines and mechanical appliances: [o]ther: [o]ther: [o]ther. . . .
Goods classifiable under this provision have a general, column one rate of duty of 2.5 percent ad valorem.
8479.90.95: Parts: [o]ther. . . .
Goods classifiable under this provision have a general, column one rate of duty of free.
ISSUE:
Whether the power tape feeders and the motor tape feeders are classifiable as other machines and mechanical appliances or parts of other machines and mechanical appliances having individual functions, under the above subheadings of heading 8479 of the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.
In NY F80533 issued to the protestant on December 27, 1999, Customs addressed the classification of the subject tape feeders. In that ruling, Customs held that the motor feeder and power feeder each have an individual function because they are capable of feeding in and of themselves, and feeding is a function which can be performed by machines operating independently of any other machine. Therefore the motor feeder and the power feeder were classifiable under subheading 8479.89.97, HTSUS, which provides for other machines and mechanical appliances having individual functions, not specified or included elsewhere in Chapter 84.
Customs further determined that the standard feeder plays an integral part in the operation of the placement machine and is incapable of performing its function of feeding without the assistance of the placement machine, which trips a lever on the feeder to advance the tape. The standard feeder thus does not have an individual function. Accordingly, the standard feeder was determined to be classified under subheading 8479.90.95, HTSUS, as other parts of machines and mechanical appliances having individual functions, not specified or included elsewhere in Chapter 84.
The protestant claims that while the classification of the standard feeder under heading 8479 as a part is correct, it disagrees with the classification of the motor feeder and power feeder as machines or mechanical appliances of heading 8479. The protestant asserts that the motor feeder and power feeder are parts of machines or mechanical appliances of heading 8479 citing Legal Note 2(b) to Section XVI. All parties agree that the subject merchandise is classifiable in Heading 8479. The issue is whether power feeders and the motor feeders are goods in and of themselves or are parts under heading 8479.
The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the official interpretation of the HTSUS. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 FR 35127, 35128 (August 23, 1989). EN 84.79, pages 1597-1598, states in pertinent part that:
The machinery of this heading is distinguished from the parts of machinery, etc., that fall to be classified in accordance with the general provisions concerning parts, by the fact that it has individual functions.
For this purpose the following are to be regarded as having “individual functions”:
Mechanical devices, with or without motors or other driving force, whose function can be performed distinctly from and independently of any other machine or appliance.
* * * * * * *
Mechanical devices which cannot perform their function unless they are mounted on another machine or appliance, or are incorporated in a more complex entity, provided that this function:
is distinct from that which is performed by the machine or appliance whereon they are to be mounted, or by entity wherein they are to be incorporated, and
does not play an integral and inseparable part in the operation of such machine, appliance or entity.
The motor feeder and the power feeder meet the criteria in EN 84.79(B) cited above because the feeders do not perform an integral and inseparable part in the operation of the chip placers/mounters. We note that the literature and video submitted indicate that the chip placers can be fed components by means of stick, tray or bulk feeders, as well as by tape feeders. Thus, the chip placer/mounter can operate without a tape feeder. The function of feeding is separate from the function of mounting electrical components onto a printed circuit board. See also HQ 957460, dated April 26, 1995, in which Customs held that a nut feeding machine was classified in heading 8479. Based upon these factors, we find that the motor feeders and the power feeders are properly classified under subheading 8479.89.97, as other machines and mechanical appliances. Therefore, we affirm the holding in NY F80533.
HOLDING:
The motor feeders and the power feeders are classifiable under subheading 8479.89.97, HTSUS, which provides for: “[m]achines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: [o]ther machines and mechanical appliances: [o]ther: [o]ther: [o]ther. . . .” Goods classifiable under this provision have a general, column one rate of duty of 2.5 percent ad valorem.
The standard feeder is classifiable under subheading 8479.90.95 , HTSUS, which provides for: “[m]achines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: [p]arts: [o]ther. . . .”
Goods classifiable under this provision have a general, column one rate of duty of free.
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 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.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Acting Director
Commercial Rulings Division