CLA-2 RR:CR:GC 966681 RSD
TARIFF Nos. 8501.20.40 and 8202.39.00
James Steven Roundtree, Esq.
Kalisch, Cotugno & Rust, LLP.
9606 Santa Monica Boulevard
Beverly Hills, California 90210
RE: Classification of motors and diamond abrasive saw blades used for making a tile saw
Dear Mr. Roundtree:
This is in response to your letter of September 4, 2003, on behalf of MK Diamond Products, Inc. (MK), concerning the tariff classification under the Harmonized Tariff Schedule of the United States (HTSUS) of motors and diamond abrasive saw blades that will be assembled after their importation with a base and other components to form tile cutting saws. Previously, you made a submission regarding this matter to the National Commodity Specialist Division of Customs and Border Protection. That office referred your letter to this office for a ruling on the tariff classification of the imported motors and saw blades. On July 23, 2003, a meeting was held with you and another representative of MK at the Office of Regulations and Rulings, Washington, D.C., to discuss this matter. Subsequently, you withdrew your request for a ruling. However, you reinitiated your ruling request on the tariff classification of the imported motors and saw blades in your letter of September 4, 2003.
FACTS:
The subject merchandise consists of power assemblies and diamond abrasive blades that are used in the manufacture of three models of tile saws, MK-170, MK-370, and MK-470. The power assemblies and diamond abrasive blades will be imported together but not necessarily in the same packaging. There will be one saw blade for each power assembly. The power assemblies will consist of a motor, housing, a keyed on-off switch, a gearbox, a blade arbor, and a power take-off for water pump accessory. Essentially, the articles are electric motors and diamond abrasive saw blades for cutting tiles.
The finished tile saws will also include a thermoplastic water reservoir, which serves as the base of the machine. This item is not part of the merchandise under consideration. In addition, the finished tile saws will consist of a worktable, the frame support for mounting of the motor, the blade guard and items described as “included accessories”, a water pump and an adjustable rip guide. These items are also not included in the merchandise under consideration.
ISSUE:
Whether the imported motors and diamond abrasive saw blades are classified as an unfinished machine tool for cutting stone in heading 8464, HTSUS, under GRI 2(a) or separately as a motor and a saw blade.
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States (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 GRIs may then be applied.
The Harmonized Commodity Description And Coding System Explanatory Notes (EN’s) constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the EN’s 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 EN’s should always be consulted. See T.D. 89 80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
The HTSUS provisions under consideration are as follows:
Handsaws, and metal parts thereof; blades for saws of all
kinds (including slitting, slotting or toothless saw blades), and
base metal parts thereof:
Circular saw blades (including slitting or slotting saw blades), and parts thereof:
8202.39.00 Other, including parts.
* * * * * *
Machine tools for working stone, ceramics, concrete, asbestos-
cement or like mineral materials or for cold working glass:
Sawing machines.
* * * * * *
8466 Parts and accessories suitable for use solely or principally
with the machines of headings 8456 to 8465, including work
or tool holders, self-opening dieheads, dividing heads and other special attachments for machine tools; tool holders for any type of tool for working in the hand:
Other:
For machines of heading 8464:
8466.91.50 Other.
* * * * * * * *
Electric motors and generators (excluding generating sets):
Universal AC/DC motors of an output exceeding 37.5W
8501.20.40 Exceeding 74.6 W but not exceeding 735 W.
* * * * * *
Other AC motors, multi-phase:
8501.51 Of an output not exceeding 750 W:
Exceeding 74.6 W but not exceeding 735 W.
* * * * * *
GRI 2(a) provides that goods imported in an incomplete condition are to be classified as the finished article. GRI 2(a) states that:
Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
The EN for Rule 2(a) explains that:
(I) The first part of Rule 2(a) extends the scope of any
heading which refers to a particular article to cover not only the complete article but also that article incomplete or unfinished, provided that, as presented, it has the essential character of the complete or finished article.
In interpreting the HTSUS, we have construed the term "essential character" to mean the attribute which strongly marks or serves to distinguish what an article is; that which is indispensable to the structure, core or condition of the article. See HQ 956538 dated November 29, 1994. Factors found to be relevant in other contexts are the significance of the imported components or their role in relation to the use or overall functioning of the completed article and, to the extent that it validates that comparison, the cost or value of the completed article versus the cost or value of the imported merchandise. See HQ 956410 dated October 14, 1994. Accordingly, we need to determine whether the saw blades and motors without the other components of the complete tile saws should be considered as having the essential character of unfinished tile saws that would be classified as machine tools for cutting tile in heading 8464, HTSUS. EN 84.64 states that:
In general machine-tools are power-driven but similar machines, worked by hand or pedal, are also covered by this heading. These latter type can be distinguished from the hand tools of heading 82.05 and from the tools for working the hand of heading 84.67, by the fact that they are usually designed to be mounted on the floor, on a bench, on a wall or on another machine, and are thus usually provided with a base plate, mounting frame, stand, etc.
Based on the language of the EN 84.64, we believe that the drafters of the heading 8464, HTSUS expected that a tool classified as a machine tool in heading 8464, would have a base plate, frame etc., so that it could be mounted or placed on a bench, table, floor etc. While there might be some exceptions, EN 84.64 clearly indicates that it is generally understood that to be classified as a machine tool, the tool must be equipped with some means of mounting it onto something else. In other words, what identifies a tool as a machine tool classified in heading 8464, HTSUS, is something that demonstrates that the tool is intended to be mounted onto something else.
In this case, the subject merchandise consists only of the motors and the diamond abrasive saw blades. The other components (the tile saw, thermoplastic water reservoir, the frame support for the mounting of the motor, the blade guard and items described as “included accessories” a water pump and an adjustable rip guide) are not included with the subject merchandise. Consequently, the subject merchandise does not contain any components for mounting or placing the motor and the saw blade on a bench, the floor, or another machine. Although clearly the motor and the saw blade are the most significant components of the finished tile saw, without an accompanying base or another component that could be used for mounting, these items are not identifiable as a machine tool. For example, it is possible that instead of attaching the base, a handle could be attached to the motor to form a hand tool, which would be classified in heading 8467, HTSUS. Accordingly, we conclude that without the base or another component for mounting, the motor and the saw blade lack a necessary element for classification as an unfinished machine tool of heading 8464, HTSUS.
You cite HQ 964843 dated January 30, 2002, in which an automobile windshield wiper assembly consisting of a motor, gearing, and a push rod was classified as a motor in heading 8501, HTSUS, rather than as an unfinished windshield wiper because the item lacked a wiper arm and blade. You believe that this ruling stands for the proposition that if the components, which perform the function for which the machine was intended, are included with the imported motor, the machine should no longer be classified simply as a motor. In this case, because the saw blades are included with the motors, you contend that they should be precluded from being classified as electric motors in heading 8501, HTSUS.
You cite a second ruling, HQ 950834, dated March 6, 1992, to support your position. In that ruling, enough components of an automotive passive seat belt rail assembly were added to the motor so that the assembly was not classified as an electric motor in heading 8501, HTSUS. Based on this ruling, you maintain that in this case, the addition of the saw blade, the component which the motor is supposed to power, means that enough has been added to the motor that it should no longer be classified as an electric motor in heading 8501, HTSUS.
However, we disagree with your contention that simply packaging the saw blade together with the motor is sufficient to qualify the items as an unfinished machine tool in heading 8464, HTSUS. As we explained previously, based on the EN for heading 8464, HTSUS, in order to qualify as an unfinished machine tool, there must be some indication that the item is designed to be mounted on the floor, on a bench, on a wall or on another machine, and are thus usually provided with a base plate, mounting frame, stand, etc. In this instance, the subject merchandise does not contain a component for mounting the tool, such as base plate or mounting frame, and therefore it does not satisfy the requirements of a machine tool of heading 8464, HTSUS. Although a component for mounting may not be the most significant component of the machine, it nevertheless is a necessary component for establishing that the device is a machine tool of heading 8464, HTSUS. Therefore, the motors and saw blades do not have the essential character of unfinished machine tools of heading 8464, HTSUS, and are not classified in that heading.
Next we consider if the motors and saw blades are classified as parts of machine tools in heading 8466, HTSUS. Noting that Chapter 84, HTSUS is in within Section XVI of the HTSUS, General Note 2 for Section XVI would be applicable. Section XVI, note 2, HTSUS, states:
Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) 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 8409, 8431, 8448, 8466, 8473, 8485, 8503, 8522, 8529, 8538 and 8548) 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 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517; (c) All other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8485 or 8548.
The EN for General Note 2 for Section XVI states that:
The above rules do not apply to parts which in themselves constitute an article covered by a heading of this Section (other than headings 84.85 and 85.48); these are in all cases classified in their own appropriate heading even if specially designed to work as part of a specific machine. This applies in particular to:
…
(8) electric motors of heading 8501.
Thus, even though the motors are designed for use in the tile saws, if they can be classified as electric motors in heading 8501, HTSUS, they are excluded from being classified in heading 8466, HTSUS as parts of machine tools of 8464, HTSUS. Accordingly, we
must determine if the electric motors would be classified in heading 8501, HTSUS. EN 85.01 provides, in pertinent part, that: (I) ELECTRIC MOTORS
Electric motors are machines for transforming electrical energy into
mechanical power. This group includes rotary motors and linear motors.
A) Rotary motors produce mechanical power in the form of a rotary motion. They are of many types and sizes according to whether they operate on DC or AC, and according to the use or purpose for which they are designed.… With the exception of starter motors for internal combustion engines (heading 85.11), the heading covers electric motors of all types from low power motors for use in instruments, clocks, time switches, sewing machines, toys, etc., up to large powerful motors for rolling mills, etc
The motor in question converts electrical energy into mechanical power in order to power the saw blade of the tile saw. EN 85.01 clearly shows that the intent of heading 8501 is to cover all electric motors within that heading, even if the motors are designed for installation in a machine. Therefore, we conclude that the motors for the tile saws are classified in heading 8501, HTSUS, as electric motors.
The proper subheading under heading 8501, HTSUS depends on the maximum output of the motor in watts. The three tile saw models each have different sized motors. The motors are described in the product information provided as universal motors. We assume that this means that they are AC/DC motors. The wattage of the three motors is 282, 373, and 559.5. This means that the three motors are classified in subheading 8501.20.40, HTSUS, as universal AC/DC motors of an output exceeding 74.8 W but not exceeding 735 W. If the motors are not AC/DC motors, they would instead be classified in subheading 8501.51.40, HTSUS.
Saw Blades
Note1(k) for Section XVI indicates that
This Section does not cover:
Articles of Chapter 82 and 83.
Saw blades are classified in heading 8202, HTSUS, and therefore, in accordance with Section Note 1(k), the saw blades in this case are also excluded from being classified in heading 8466, HTSUS as parts of machines in heading 8464, HTSUS. We conclude that the saw blades for the tile saw blades are classified in subheading 8202.39 00, HTSUS, as handsaws, and metal parts thereof; blades for saws of all kinds…and base metal parts thereof: other, including parts.
HOLDING:
The motors for the tile saws are classified in subheading 8501.20.40, HTSUS, as electric motors, universal AC/DC motors of an output exceeding 74.8 W but not exceeding 735 W. The diamond saw blades are classified in subheading 8202.39.00, HTSUS, as handsaws, and metal parts thereof; blades for saws of all kinds…and base metal parts thereof: other, including parts.
Sincerely,
Myles B. Harmon,
Director, Commercial Rulings Division