CLA-2-84:S:N:N1:103 875658
8427.10.0060
Mr. Scott A. Cohn
Grunfeld, Desiderio, Lebowitz & Silverman
12 East 49th St.
New York, NY 10017
RE: The tariff classification of a shell and shutter stock
system from Japan
Dear Mr. Cohn:
In your letter dated June 16, 1992 on behalf of Kao
Infosystems Company you requested a tariff classification ruling.
This is one of several ruling requests submitted on behalf
of your client covering the importation of numerous machinery
items for producing and assembling 3.5 inch magnetic media
computer diskettes. The diskettes are basically composed of an
outer plastic shell, a protective metal shutter, a metal center
hub, and the magnetic media itself. You state that the specific
machines covered by this ruling request form a shell and shutter
stock system which you describe as a central conveyor and storage
system for the molded shells and the completed shutters. The
individual machines used in the system are:
1. Double decker conveyor (model U-971) - a roller conveyor
which carries storage totes loaded with shell halves to an
automatic guideway vehicle.
2. Conveyor station (model U-972) - a machine which picks
empty shutter storage totes which are stored in a shell-shutter
rack system.
3. Tote cleaning station (model K-972) - a machine which
cleans empty totes by means of a rotating brush and pressurized
air blowers.
4. Automatic guideway vehicles (models Y-701 and Y-801) -
self-propelled works trucks, with a roller conveyor work surface,
used to transport totes to and from this system by following the
path of a metal strip on the manufacturing plant floor.
You request a ruling as to the classification of these items
when separately imported, as well as a ruling as to their
classification if they are imported together in a single
shipment. In the latter case you contend that the items form a
functional unit, as defined in Note 4 to section XVI of the
Harmonized Tariff Schedule of the United States (HTS), in that
they contribute to a clearly defined function: a central storage
and conveyor system for loading, unloading and storing molded
shells and shutters.
Note 4 to section XVI holds that where a machine (including
a combination of machines) consists of individual components
(whether separate or interconnected by piping, by transmission
devices, by electric cables or by other devices) intended to
contribute together to a clearly defined function covered by one
of the headings in chapter 84 or chapter 85, then the whole falls
to be classified in the heading appropriate to that function. In
discussing this note the Explanatory Notes to the HTS, which
provide the official interpretation of the HTS, state:
For the purposes of this Note, the expression
"intended to contribute together to a clearly defined
function" covers only machines and combinations of
machines essential to the performance of the function
specific to the functional unit as a whole, and thus
excludes machines or appliances fulfilling auxiliary
functions and which do not contribute to the function
of the whole.
The cleaning station does not contribute to the function of
tote conveyance or storage. In addition, note 4 is limited to
situations in which the imported machines contribute to a single
function, whereas you indicate the central storage and conveyor
system performs several distinct functions. Accordingly, in our
opinion no functional unit exists. Thus the machines described
above are separately classifiable whether imported separately or
together.
The applicable subheading for the model U-971 roller
conveyor will be 8428.39.0000, HTS, which provides for other
continuous-action elevators and conveyors, for goods or
materials: other. The rate of duty will be 2 percent ad valorem.
The applicable subheading for the model U-972 conveyor
station will be
8428.90.0090, HTS, which provides for other lifting, handling,
loading or unloading machinery: other machinery: other. The rate
of duty will again be 2 percent ad valorem.
The applicable subheading for the K-972 cleaning station
will be 8422.20.0000, HTS, which provides for machinery for
cleaning or drying bottles or other containers. The rate of duty
will be 3.6 percent ad valorem.
Finally, the applicable subheading for the models Y-701 and
Y-801 automatic guideway vehicles will be 8427.10.0060, HTS,
which provides for other works trucks fitted with lifting or
handling equipment: self-propelled trucks powered by an electric
motor: automated guided vehicle. The duty rate will be free.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport