CLA-2 RR:CR:GC 965465 GOB
Port Director
U.S. Customs Service
P.O. Box 37260
Milwaukee, WI 53237-0260
RE: Protest 3701-01-100038; Ink Dispensing Machines
Dear Port Director:
This is our decision regarding Protest 3701-01-100038, filed on behalf of GSE Dispensing, Inc. (“protestant”) concerning the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of Colorsat Compact M-16WB ink dispensing machines (“ink dispensing machines”).
FACTS:
The file reflects the following. The entry at issue was filed on March 31, 2001, and was liquidated on August 3, 2001. The protest was filed on October 31, 2001.
The ink dispensing machines were entered under subheading 8443.60.00, HTSUS. The entry was liquidated under heading 8479.89.97, HTSUS.
The protestant describes the ink dispensing machines as follows:
The M-16WB is a fully automated and computerized gravimetric dispensing system, solely and specifically designed for mixing and dispensing water-based printing inks for use in printing presses. The M-16WB’s incorporated, easy-to-use interface, which is pre-loaded with sophisticated and powerful management features (Ink Management System software), not only enables the operator of the machine to produce and dispense various mixtures of printing ink in user-determined quantities, but also to store an unlimited number of printing ink formulas, re-use press return ink, control inventory, plan production, estimate job costs, import formulas from an ink supplier or a color matching system and generate detailed reports.
The M-16WB allows the user to import multiple ink formulas either directly from their ink supplier, or via direct uplink with a separate color matching system. The M-16WB’s computer software analyzes the ink’s formula and creates a “recipe” for that formula, which is utilized by the M-16WB to trigger up to 16 incorporated pumps and various valves to release and mix specified quantities of primary color inks . . . thereby reproducing the desired ink color and consistency. [Footnote omitted.] The M-16WB can be further programmed by the individual user to dispense the printing ink into receptacles of various size (up to 50 lbs.), thereby satisfying the diverse supply requirements of a specific printing machine application.
ISSUE:
What is the classification under the HTSUS of the ink dispensing machines?
LAW AND ANALYSIS:
We note initially that the protest was timely filed under the statutory and regulatory provisions for protests, 19 U.S.C. 1514(c)(3)(A) and 19 CFR 174.12(e)(1).
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI’s may then be applied.
The Harmonized Commodity Description and Coding System Explanatory Notes (“EN’s”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN’s 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.
The HTSUS provisions under consideration (2001) are as follows:
8413 Pumps for liquids, whether or not fitted with a measuring device . . .
Pumps fitted or designed to be fitted with a measuring device:
8413.19.00 Other
* * * * * *
8443 Printing machinery, including ink-jet printing machines, other than those of heading 8471; machines for uses ancillary to printing; parts thereof:
8443.60.00 Machines for uses ancillary to printing
* * * * * *
8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof:
Other machines and mechanical appliances:
8479.89 Other:
Other:
8479.89.97 Other
Note 2 to Chapter 84, HTSUS, provides in pertinent part as follows:
Subject to the operation of Note 3 to section XVI, a machine or appliance which answers to a description in one or more of the headings 8401 to 8424 and at the same time to a description in one or more of the headings 8425 to 8480 is to be classified under the appropriate heading of the former group and not the latter.
EN 84.13 provides in pertinent part as follows:
This heading also includes delivery pumps equipped with measuring or price-calculating mechanisms such as are used for supplying petrol or oil in garages, and also pumps specially designed for use with other machines, vehicles, etc. . .
. . .
Subheading Explanatory Note.
Subheadings 8413.11 and 8413.19
These subheadings cover only those pumps, of whatever type, which form, or have been designed to form, a unit with a device permitting the volumetric control of the quantity of liquid discharged, whether or not this device is presented at the same time as the pump.
This control device may be very simple (for example, a calibrated globe or unit) or, on the contrary, consist of more complex mechanisms automatically controlling the stopping of the pump when a given total quantity is discharged (such as, for example, a delivery pump comprising a calibrated cylinder (measuring cylinder) and a device permitting, on the one hand, the determining of a desired quantity and, on the other, stopping the pump motor when the predetermined quantity is obtained) or fulfilling other operations connected with volumetric control proper (for example, pumps for integration of totals, prepayment pumps, price-calculating pumps, sampling pumps, automatic mixture regulating pumps and automatic dosage pumps). On the other hand, when, for example, the measuring device is designed to be simply mounted on the tube through which the liquid set in motion by the pump flows, each of the two units (pump and measuring device) are to be classified in their own headings, even when presented together. These subheadings cover, for example, pumps for delivering petrol or other motor fuels and lubricants as well as pumps with a measuring device for use in food shops, laboratories and various industrial activities.
EN 84.43 provides in pertinent part as follows:
(II) MACHINES FOR USES ANCILLARY TO PRINTING
This group covers machines (whether or not presented separately) for uses ancillary to printing exclusively designed to operate with printing machines and used during or after the printing operation for feeding, handling or further working the sheets or rolls of paper.
These machines, which are usually separate from the printing machine itself, include:
(A) Stock or pile elevators . . .
(B) Automatic feeders, used for sheet by sheet printing . . .
(C) Sheet delivery mechanisms, similar in design to feeders
. . .
(D) Folders, gummers, perforators and staplers . . .
If, however, they are not designed exclusively for use in conjunction with a printing machine, they are excluded (heading 84.40 or 84.41, as the case may be).
(E) Serial numbering machines . . .
(F) Bronzing machines for the printing industry . . .
[Emphasis in original.]
Pursuant to Note 2 to Chapter 84, HTSUS, if the ink dispensing machines are described in heading 8413, HTSUS, and heading 8443, HTSUS, they are classified in heading 8413, HTSUS. If they are described in either heading 8413, HTSUS, or heading 8443, HTSUS, they may be described in heading 8479, HTSUS, as heading 8479, HTSUS, by its terms, applies to machines which are not specified or included elsewhere in Chapter 84, HTSUS.
We first examine the issue of whether the ink dispensing machines are described in heading 8443, HTSUS, i.e., are they machines for uses ancillary to printing?
EN 84.43 provides in pertinent part that heading 8443, HTSUS “. . . covers machines . . . designed to operate with printing machines and used during or after the printing operation for feeding, handling or further working the sheets or rolls of paper.” We find that the ink dispensing machines do not fall within this description. They are clearly not “. . . used during or after the printing operation for feeding, handling, or further working the sheets of paper.” This language is part of the conjunctive language in the EN which indicates that such language must be satisfied in order for the entire sentence to be deemed satisfied or applicable. Therefore, because the cited language (i.e., “. . . used during or after . . . “) of the EN is not satisfied, the entire sentence of the EN is not satisfied or applicable. Thus, we find that the ink dispensing machines are not described in the first sentence of EN 84.43 under ”(II) MACHINES FOR USES ANCILLARY TO PRINTING.”
We note additionally that it is our view that the ink dispensing machines are not identical to or very similar to the specific goods stated in the pertinent EN, excerpted above, i.e., they are not identical to or very similar to stock or pile elevators; automatic feeders; sheet delivery mechanisms; folders, gummers, perforators and staplers; serial numbering machines; or bronzing machines. All of the cited machines work directly with the paper or perform a function with the paper. The ink dispensing machines are “one step removed” from the paper. They generate the ink which goes into the printer but they do not work directly with the paper.
Based upon the above, we find that the ink dispensing machines are not machines for uses ancillary to printing within the meaning of heading 8443, HTSUS. Therefore, they are not described in heading 8443, HTSUS.
We now examine whether the ink dispensing machines are described in heading 8413, HTSUS, i.e., are they pumps for liquids? We find that the ink dispensing machines fall within the following language from EN 84.13 (Subheading Explanatory Note for subheadings 8413.11 and 8413.19) excerpted above: “These subheadings cover only those pumps, of whatever type, which form, or have been designed to form, a unit with a device permitting the volumetric control of the quantity of liquid discharged . . . This control device may . . . consist of more complex mechanisms automatically controlling the stopping of the pump when a given total quantity is discharged . . . or fulfilling other operations connected with volumetric control proper (for example . . . automatic mixture regulating pumps . . .) . . . These subheadings cover, for example, . . . pumps with a measuring device fur use in . . . various industrial activities.” Therefore, we find that the ink dispensing machines are described in heading 8413, HTSUS, and are classified in subheading 8413.19.00, HTSUS, as: “Pumps for liquids . . . : Pumps fitted or designed to be fitted with a measuring device: . . . Other.”
We note that the rate of duty for subheading 8413.19.00, HTSUS
(i.e., free) is the same as the rate of duty for the provision claimed by the protestant, subheading 8443.60.00, HTSUS.
HOLDING:
The ink dispensing machines are classified in subheading 8413.19.00, HTSUS, as: “Pumps for liquids . . . : Pumps fitted or designed to be fitted with a measuring device: . . . Other.”
Since reclassification of the merchandise as indicated above will result in the same rate of duty as the rate of duty for the provision claimed by the protestant, you are instructed to GRANT the protest in full.
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 in accordance with the decision must be accomplished prior to mailing of 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.treas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Acting Director
Commercial Rulings Division