CLA-2 OT:RR:CTF:TCM H063625 AP
Tariff No.: 8479.89.98
Port Director
Port of Boston
U.S. Customs and Border Protection
10 Causeway St., Room 603
Boston, MA 02222
RE: Application for Further Review of Protest Nos. 0401-09-100022 and 0401-09-100024; Stripping and/or cutting machinery
Dear Port Director:
The following is our decision regarding Protest and Application for Further Review (“AFR”) numbers 0401-09-100022 and 0401-09-100024, timely filed on behalf of Schleuniger, Inc. (“protestant”), regarding the tariff classification of stripping and/or cutting machinery under the Harmonized Tariff Schedule of the United States (“HTSUS”). In preparing this ruling, we carefully considered the information provided in your letter of May 20, 2009, and the oral presentation protestant made on November 9, 2010.
FACTS:
The merchandise at issue consists of nine models of cutting and/or stripping machinery, namely, Schleuniger’s EcoCut 3200, UniStrip 2600, CoaxStrip 5300, CoaxStrip 5400, CoaxStrip 5500, CompactStrip 9200, EcoStrip 9300, PowerStrip 9500, and MegaStrip 9600.
i. EcoCut 3200
According to the product specifications supplied by the protestant, the
EcoCut 3200 cuts wire, cable, and tubing. The machine measures and cuts a variety of round material including discrete wire, multi-conductor cable, heat-resistant tube, double-walled stiff tube, corrugated tube, heat shrink tube, thin-walled PVC tube, silicon tube, and PVC profil tube, and can be equipped with a tubing cutter head or a universal cutter head. The tubing cutter head can process tubing up to 0.50” (12.7 mm). The universal cutter head can process wire, cable, and tubing up to 0.39” (10 mm).
ii. UniStrip 2600
According to the materials supplied by the protestant, the UniStrip 2600 is a programmable wire and cable stripping machine. The machine can process many different wire and cable types, including discrete wire from 0.03 mm2 up to 16 mm2, power cords, multi-conductor cables, and flat cables. The stripping possibilities include: full pull-off, full pull-off and recut, partial pull-off, partial pull-off and recut, multiple strips, power cords with different strip lengths, sensor cables with short break-out lengths, flat cables (jacket), flat cables (jacket and conductors), and double-insulated cables.
iii. CoaxStrip 5300, 5400 and 5500 (“5000 Series”)
The CoaxStrip 5300 strips a variety of cables and wires, including single conductor wires, double-insulated cables/wires, coaxial and triaxial cables, and conformable and multi-conductor cables.
The CoaxStrip 5400 strips a wide range of wires and cables such as single conductor wires, double insulated wires, coaxial and triaxial cables, conforming cables, and shielded multi-conductor cables.
The CoaxStrip 5500 is a multi-step stripping machine for single conductor wires and coaxial, triaxial, multi-conductor cables.
iv. CompactStrip 9200, EcoStrip 9300, PowerStrip 9500 and MegaStrip 9600 (“9000 Series”)
The CompactStrip 9200 cuts and strips discrete wire, zipcord, flat ribbon, flat cable, and multi-conductor cable. In addition to stripping, it can perform functions such as slitting, coiling, and stacking.
The EcoStrip 9300 cuts and strips round cables and wires up to 6 mm (0.235’’) outer diameter and flat ribbon cables up to a width of 13 mm (0.511”) with a stripping length up to 999.9 mm (3.28 ft.). For example, it can cut cables and wires to length, strip with partial and/or full pull-off, strip short wires, and twist stranded wires. It can also perform feeding, marking, stacking and coiling of wire and cable.
The PowerStrip 9500 cuts and strips stranded wire, multiconductor cable, flat ribbon cable, coaxial cable, and fiber optic cable. It performs regular cutting, zipcord applications, full and partial strips, combined jacket stripping and stripping of inner conductors, cable end and sectional slitting, and flat ribbon cable operations. In addition, it can also perform slitting, coiling, stacking, and tinning.
The MegaStrip 9600 measures, cuts, and strips cables up to 1.0” (25.4 mm) in diameter and flat ribbon cables up to 3.3” (84 mm) in width. Its applications include powercord inner/outer stripping (combing), multiple layer stripping, unequal lengths cutting and stripping, flat ribbon cable stripping, flat ribbon cable separating, and hot stamps/inkjet marking. According to protestant’s website, it cuts and strips many cable types ranging from standard cable to multi-conductor and flat ribbon cable. It can also perform slitting, coiling, and stacking.
The EcoCut 3200, the UniStrip 2600, the 5000 Series, and the 9000 Series were entered on various dates between August 6, 2007 and December 26, 2007, under
heading 8479, HTSUS, as “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter.” On July 17, 2008, and August 12, 2008 the Port of Boston issued Notices of Action (CBP Forms 29), informing the importer that it had reclassified and rate-advanced the entries containing the EcoCut 3200 and the 9000 Series under heading 8463, HTSUS, as “Other machine tools for working metal or cermets, without removing material” and the Unistrip 2600 and the 5000 Series under heading 8477, HTSUS, as “Machinery for working rubber or plastics.” On August 15-29, 2008, U.S. Customs and Border Protection (“CBP”) liquidated the entries accordingly.
ISSUE:
Whether the wire stripping and/or cutting machinery is classified in heading 8463, HTSUS, as “Other machine tools for working metal or cermets, without removing material,” in heading 8477, HTSUS, as “Machinery for working rubber or plastics,” or in heading 8479, HTSUS as “Machines and mechanical appliances having individual functions, not specified or included elsewhere in [Chapter 84]”?
LAW AND ANALYSIS:
This matter is protested under 19 U.S.C. §1514(a)(2) as a decision on classification. Protest numbers 0401-09-100022 and 0401-09-100024 were timely filed within 180 days of liquidation of all involved entries. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2)(B)(ii), (iii) (codified as amended at 19 U.S.C. § 1514(c)(3) (2006)). As requested by protestant, we will review protest numbers 0401-09-100024 and 0401-09-100022 together.
Further review of both protests was properly accorded to protestant pursuant to 19 C.F.R. § 174.24(a) because CBP’s decision is alleged to be inconsistent with a decision made at the port with respect to the same or substantially similar merchandise. Specifically, protestant alleges that the ruling is inconsistent with two Notices of Action (CBP Forms 29), dated February 12, 2001, and April 13, 2001. The February 12, 2001 Notice of Action concluded that three 9000 Series machines (namely, Schleuniger’s EcoStrip 9300, OmniStrip 9400 and PowerStrip 9500) were properly classified in heading 8479, HTSUS. The July 17, 2008 and August 12, 2008 Notices of Action discussed above came to a different conclusion.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI”). 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 may then be applied.
The 2007 HTSUS provisions under consideration in this case are as follows:
8463 Other machine tools for working metal or cermets, without removing material:
* * *
8477 Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof:
* * *
8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof:
Note 3 to Section XVI, HTSUS, states:
Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complimentary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
Note 7 to Chapter 84, HTSUS, provides, in relevant part:
A machine which is used for more than one purpose is, for the purposes of classification, to be treated as if its principal purpose were its sole purpose.
Subject to Note 2 of this Chapter and Note 3 to Section XVI, a machine the principal purpose of which is not described in any heading or for which no one purpose is the principal purpose is, unless the context otherwise requires, to be classified in heading 8479.
The Explanatory Notes (“ENs”) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither 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 Fed. Reg. 35127, 35128
(August 23, 1989).
The General EN(D) to Chapter 84 provides, in pertinent part, that:
Machines which fall in two or more headings, none of which is within headings 84.01 to 84.24, are classified in that heading which provides the most specific description of the goods, or according to the principal use of the machine. Multi-purpose machines which are used equally for a number of different purposes or industries (e.g., eyeletting machines used equally well in the paper, textile, leather, plastics, etc., industries) are classified in heading 84.79.
Protestant claims that the goods can process a wide variety of different materials and are correctly classified in heading 8479, HTSUS, as “Machines and mechanical appliances having individual functions, not specified or included elsewhere in
[Chapter 84].”
The EcoCut 3200, the UniStrip 2600, the 5000 Series, and the 9000 Series machines are multi-function machines pursuant to Note 3 to Section XVI, HTSUS. They are designed to perform several complimentary functions described in different headings of Section XVI. Specifically, the EcoCut 3200 cuts wire [a function described by heading 8463, HTSUS] as well as cable and tubing [functions described by
heading 8477, HTSUS (if cutting plastic or rubber) or heading 8479, HTSUS (if cutting a variety of materials)]. Similarly, the UniStrip 2600 strips a variety of wires [heading 8463, HTSUS] and cables [headings 8477 and 8479, HTSUS]. The 5000 Series strip coaxial and triaxial cables, and conformable cables [headings 8477 and 8479, HTSUS] and multi-conductor and single conductor wires [heading 8463, HTSUS]. The 9000 Series cut, strip, slit, coil, and stack wires [heading 8463, HTSUS] and various cable types, including coaxial cables, flat ribbon cables, and fiber optic cables
[headings 8477 and 8479, HTSUS]. Accordingly, by the terms of Note 3 to Section XVI, HTSUS, the machines are classified “as if consisting only of that component . . . which performs the principal function.”
Inasmuch as the EcoCut 3200, the UniStrip 2600, the 5000 Series, and the 9000 Series perform a variety of equally important functions, their principal function cannot be determined. Accordingly, consistent with Note 7 to Chapter 84, HTSUS, the machines are properly classified in heading 8479, specifically in subheading 8479.89.98, HTSUS, as “Machines and mechanical appliances having individual functions, not specified or included elsewhere in [Chapter 84]: Other machines and mechanical appliances: Other: Other: Other.” See General EN(D) to Chapter 84 (“Multi-purpose machines which are used equally for a number of different purposes or industries … are classified in heading 84.79.”). See also HQ W968282, dated July 27, 2009, and HQ 964001, dated February 12, 2001 (classifying an automated sample processing system with multiple functions and no principal function in heading 8479, HTSUS).
HOLDING:
Under the authority of GRI 1 (Section XI, Note 3, and Chapter 84, Note 7), the EcoCut 3200, UniStrip 2600, CoaxStrip 5300, CoaxStrip 5400, CoaxStrip 5500, CompactStrip 9200, EcoStrip 9300, PowerStrip 9500, and MegaStrip 9600, are classified in heading 8479, HTSUS, specifically in subheading 8479.89.98, HTSUS, as “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Other: Other: Other.” The 2007 column one, general rate of duty is: 2.5 percent.
You are instructed to GRANT both protests. In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), 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, Regulations and Rulings will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division