CLA-2 RR:CR:GC 966729 RSD
TARIFF NO. 8459.29.00, 8459.70.80, 8466.93.53, 8466.93.95.
Mr. Paul Vroman
Danzas AEI
2660 20th Street
Port Huron, Michigan 48060
RE: Air electric drilling and tapping units used as lightweight drilling machines and tapping units.
Dear Mr. Vroman:
This is in response to your letter on behalf of Cross Huller North America requesting a ruling regarding the tariff classification under the Harmonized Tariff Schedule of the United States (HTSUS) of air electric quill type (drilling and tapping units), universal stands, mounting bases and hydro checkers. The National Commodity Specialist Division forwarded your letter to this office for a response.
FACTS:
The subject merchandise are air electric quill drilling and tapping units, universal stands, mounting bases, and hydro checkers. Some of the units at issue here are described as lightweight drilling machines. Other of the electric units will be used as tapping units. (A quill is a metal cylinder that contains and supports the spindle assembly. It moves up and down, but unlike the spindle, it does not rotate.) These drilling and tapping units are designed for use in a wide variety of light-duty operations such as in the automotive, electronics, appliance, aerospace, wood, plastic and other industries that can benefit from lightweight and less costly drilling and tapping units. Electric motors drive the spindles in the drilling and tapping units. The unit cycle is air actuated, and air cylinders power it. They are designed for mounting on a stand, or on an end of a robotic arm. The imported units will include chucks, but no drill bits, taps, or collets.
The manufacturer produces several different drill units described in the submitted literature as electrically driven, air actuated, hydraulic feed units. The tap units include electrically driven, air actuated models and one mechanical ball screw type tapping unit. The latter is the only drill or tap unit that does not incorporate a hydro checker. All models have a quill and a drill or tap chuck.
It is intended that the primary use of the universal stands will be as a piece of equipment for mounting the drilling and tapping units. They are made of steel and are comprised of a tubular column and a holding bracket. The mounting bases are steel mounting brackets that allow the drilling or tapping units to be attached to a stand, robot arm, or the machine center etc.
The hydro checkers are speed controllers that control the cutting feed of the drilling and tapping units. They use a spring or compressed air to retract the rod.
For the drilling and tapping units to be operational, the customer must supply several pieces of equipment that are not imported with the product including a compressor, control panel, motor starter, 4-way valve and air logic.
ISSUE:
What is the classification under the HTSUS of the air electric drilling and tapping units (imported with the universal stands or bases, and imported without the universal stands or bases), the universal stands, mounting bases and the hydro checkers.
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:
Machine tools (including way-type unit head machines) for drilling, boring, milling, threading or tapping by removing metal other than lathes (including turning centers) of heading 8458:
Other drilling machines:
8459.29.00 Other.
8459.70 Other threading or tapping machines:
Other.
* * * * * * *
Parts and accessories suitable for solely or principally with the machines of heading 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:
8466.93 For machines of headings 8456 to 8461:
Bed, base, table, head, tail, saddle, cradle,
cross slide, column, arm, saw arm, wheelhead, tailstock, headstock, ram, frame, work-arbor support and C-frame castings, weldments or fabrications:
Other:
8466.93.53 Other.
* * * * * * *
For machines of heading 8456 to 8461:
Other:
Other:
8466.93.95 Other.
* * * * * * *
Electric motors and generators (excluding generating sets):
* * * * * * *
In this case, the drilling and tapping units consist of several components that are attached to an electric motor. Consequently, it is necessary to determine whether the drilling units and tapping units should be classified as electric motors in heading 8501, HTSUS or as another type of machine. We have previously indicated that a good consisting of a motor and the actual mechanism or another part of the mechanism the motor serves to power will be beyond the scope of heading 8501, and will be classified with the machine, apparatus or device with which it is solely or principally used. See HQ 950834, dated March 6, 1992. However, in HQ 950834, we stated that an electric motor is classifiable under heading 8501, HTSUS, even when imported with additional components (other than those listed in EN 85.01) if:
those additional components complement the function of the motor (HQ 083955, dated July 10, 1989); (2) those additional components are devices with which motors are commonly equipped (HQ 087909 dated December 26, 1990); (3) those additional components serve merely to transmit the power the motors produce (HQ 950557, dated December 26, 1991).
For example, electric window regulators used to convert standard automobile windows to power windows, and which consist of a motor, components to hold and/or move the window, plus mounting brackets for the entire assembly, were held to be outside the scope of heading 8501, and were classified in subheading 8708.29.50, HTSUS, as other parts and accessories of automobile bodies. See HQ 957575, dated July 10, 1995.
We note that the imported drilling and tapping units contain components such as the tap or drill chucks, the quill and the hydro checker (except for the ball screw type tap unit). These components do not merely transmit the power the motors produce. They help perform the work of the drilling and tapping units and they are not items that electric motors are commonly equipped with. Therefore, we conclude that the drill or tap units are not classified as electric motors in heading 8501, HTSUS.
As imported a number of components necessary for the operation of the completed drilling and tapping are missing from the machines. The items that are missing from the drilling and tapping units, which the customer must supply, include a compressor, controls, valves, etc. Consequently, we must determine whether the drilling and tapping units imported with the universal stands or the mounting bases, but without several other components, should be classified as unfinished or incomplete machine tools of heading 8459, HTSUS.
EN 84.59 states that:
This heading covers machine-tools for drilling, boring, milling, threading or tapping by removing metal, other than lathes (including turning centres) of heading 84.58.
In general machine tools are power-driven but similar machines, worked by hand or pedal, are also covered by this heading. These latter types can be distinguished from the hand tools of heading 82.05 and from the tools for working in 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.
This heading covers :
(1) Drilling machines. These are used for cutting cylindrical holes, including recessed holes, in articles by means of a rotating tool called a drill or bit. The article remains immobile during the working of the tool which is rotated (cutting action) or fed into the work (feed action). This heading also covers drilling machines which employ a fixed tool to work a rotating article, or like machines using both processes.
…
(4) Tapping machines (i.e., machines to produce a screw thread in an existing hole) and threading machines for threading bolts, screws, etc. It should be noted that thread milling machines are regarded as milling machines.
…
Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts and accessories (other than the tools of Chapter 82) of the machine tools of this heading are classified in heading 84.66.
GRI 2(a) governs the classification of incomplete articles. It 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 under GRI 2(a) the drilling and tapping units imported with stands or bases would be considered as an unfinished machine tools for drilling or tapping classified in heading 8459, HTSUS.
In HQ 966681 dated November 25, 2003, we considered whether a saw blade and an electric motor without a base or frame for mounting should be classified as a machine tool for sawing stone in heading 8464, HTSUS. We explained that EN 84.64 indicated 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. Based on the language of EN 84.64, we determined that something that demonstrates the tool is intended for mounting onto something else is what normally identifies a tool as a machine tool classified in heading 8464, HTSUS. Therefore, we ruled 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.
We note that EN 84.59 contains the identical language of EN 84.64 regarding machine tools. Both EN 84.59 and EN 84.64 indicate that articles that are classified in those headings 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. Therefore, the analysis used in HQ 966681, regarding machine tools that are classified in the heading being usually being designed to be mounted on the floor, on a bench on a wall or on another machine would apply to articles considered for classification in heading 8459, HTSUS. In this instance, most of drilling and tapping units will be imported with a universal stand or a mounting base, and thus they satisfy a prerequisite for being classified as a machine tool in heading 8459, HTSUS.
Although as imported the drilling and tapping units lack a number of components that are necessary for the operation of the machines, a number of key components such as the motor, the chuck, mechanical ball screw, and the hydro checker are included in the unfinished drilling and tapping units. We believe that the presence of these components is enough to indicate that the basic structure and essence of the finished drilling and tapping units are contained in the articles to be imported. In other words, we believe that unfinished drilling and tapping units imported with the universal stands or bases will have the basic identity of machine tools for drilling or tapping. Accordingly, we find that the subject drilling and tapping units that are imported with universal stands or mounting bases have the essential character of complete drilling and tapping units. Therefore, under GRI 2(a) the unfinished units that are used for drilling are classified in subheading 8459.29.00, HTSUS, as other drilling machines. Similarly, unfinished units that are used for tapping are classified in 8459.70.80, HTSUS as other threading or tapping machines: other.
Consistent with the analysis above, EN 84.59 indicates that the drilling and tapping units without a stand or base lack an essential element of a machine tool, something that demonstrates that the machines are designed to be mounted on the floor, on a bench on a wall or on another machine. Therefore, because they do not have a means for mounting, the drilling and tapping units imported without stands or bases cannot be classified as unfinished machine tools for drilling or tapping in heading 8459, HTSUS.
EN 84.59 indicates that subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts and accessories of the machine tools of heading 8459, HTSUS are classified in heading 8466, HTSUS. Consequently, we must determine if the drilling and tapping units imported without a stand or base stand are classified in heading 8466, HTSUS, as parts or accessories suitable for use solely or principally with the machines of headings 8456 to 8465.
Noting that Chapter 84, HTSUS is in within Section XVI of the HTSUS, 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.
Customs generally will consider an article to be a part if: it is combined with other articles to be used; or it is an integral, constituent or component part, without which the article to which it is joined could not function; or it aids in the safe and efficient operation of the main article; or it is identifiable by shape or other characteristics as an article solely or principally used as a part. See HQ 966441, date June 12, 2003. In this instance, we believe that the drilling and tapping units imported without stands or bases meet the criteria for being considered a part of complete drilling and tapping units. Therefore, they are classified in subheading 8466.93.95, HTSUS.
The stands and the bases imported separately from the drilling and tapping units also qualify as parts in accordance with criteria mentioned above. Therefore, they also would be classified in heading 8466, HTSUS. We believe that they are most appropriately described in subheading 8466.93.53, HTSUS.
The last items that we must consider are the hydro checkers imported separately from drilling and tapping units. The hydro checkers are speed controllers that control the cutting feed of the drilling and tapping units. They
use a spring or compressed air to retract the rod. A hydro checker can be
described as a self-contained oil mechanism with an adjustable knob that controls the opening of an orifice. In accordance with Section XVI, Note 2(b), the hydro checkers are classified in subheading 8466.93.95, HTSUS.
HOLDING:
The drilling units imported with the stands or the bases are classified in subheading 8459.29.00, HTSUS, as: “Machine tools … for drilling, boring, milling, threading or tapping by removing metal…: Other drilling machines: Other.” The units that are used for tapping that are imported with the stands or the bases are classified in subheading 8459.70.80 as: “Machine tools (including way-type unit head machines) for drilling, boring, milling, threading or tapping by removing metal other than lathes…: Other threading or tapping machines: Other.”
The stands and bases imported separately from the drilling and tapping units are classified in subheading 8466.93.53, HTSUS, which provides for “Parts and accessories suitable for use solely or principally with the machines of heading 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for machine tools…: Other: For machines of heading of 8456 to 8461: Bed, base, table head tail saddle, cradle, cross slide, column, arm, saw, arm, wheelhead, tailstock, headstock ram, frame, work-arbor support, and C-frame castings, weldments or fabrications: Other: Other.”
The drilling and tapping units that are imported without a stand or a base and the hydro checkers imported separately are classified in subheading 8466.93.95, HTSUS as: “Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465…: Other: For machines of heading 8456 to 8461…: Other: Other: Other.”
Sincerely,
Myles B. Harmon,
Director, Commercial Rulings Division