CLA-2-84:OT:RR:NC:1:104
Ms. Marilyn Viruet
Bekaert Corp.
1395 South Marietta Parkway
Building 500, Suite 100
Marietta, GA 30067-4440
RE: The tariff classification of Machines for Manufacturing Wire Fencing from New Zealand
Dear Ms. Viruet:
In your letter dated March 30, 2011, you requested a tariff classification ruling.
The Fixed Knot Machine, Stiff Stay Machine, and the Hinge Joint Machine are agricultural fence manufacturing machines. These fences are used in the agricultural industry to contain livestock, secure farming crops and for other agricultural security concerns. These machines only produce rolls of wire fence and do not produce the posts or staples needed to apply the fence to the posts. Complete machines are imported in a disassembled condition.
All the models use galvanized steel wire which varies in physical specifications according to the specific application to be employed by the end user. None of the machines use precrimped wire. If a crimp is needed, it will be applied after the knot is made. While all the models in question are designed to manufacture wire fencing, they differ as to the method used at the wire intersections to keep the wires together, i.e., how the knots are made. The Fixed Knot Machine has two model designations: Model # FKM 27-3D which produces a fence width of 2610mm (103”) and Model #FKM 30-3D which produces a fence width of 3050mm (120”). The Fixed Knot Machines utilize the following manufacturing steps: (1) 10 wires (“line wires” whose number may vary depending upon the type of fence being manufactured) lie parallel in the horizontal plane at a certain distance from each other, (2) a stay wire is placed in the same plane but at a 90 degree angle over the 10 parallel wire and cut so the ends do not extend pass the 10 wires, (3) the 10 wires called knot wires are fed through a mechanical device where a knot is formed at each intersection of the line and stay wire, (4) once the knots are formed, the machine will pull the 10 line wires forward at a predetermined amount of inches, (5) the roll of fence which is being formed through this process rotates sufficiently to pick up the extra length that was formed, and (6) manufacturing steps 2, 3 and 4 are continuously repeated as necessary until the fence has reached its predetermined length at which point the 10 line wires are cut and the roll is turned out. During this process, an additional process takes place such as straightening of the wire. Electric trip systems are also present to ensure that the machine stops automatically in the event of a tangled wire, a breakage or an incorrect machine function. The Fixed Knot Machine contains a take-up mechanism which incorporates an electrically driven stripper for the easy removal of the finished roll.
The Stiff Stay Machine has two model designations: Model #SSM 20-3 which is a 20 line x 2.0m machine and Model #SSM 26-3D which is a 25 line x 2.5m dual fence machine capable of manufacturing two rolls at a time. Both of these machines can operate at speeds of up to 80 stays per minute. While the Stiff Stay models operate in basically the same manner as the Fixed Knot models, there is one main difference, i.e., the knots produced have a different form. The Stiff Stay Machine features a tri-drive feed unit which ensures an accurate wire delivery directly into the knot forging system. The Stiff Stay Machine contains a servo-driven indexing crimp drum which simplifies the change of stay wire spacing at the push of a button without any mechanical changes which eliminates long down times during change over. The finished roll is mechanically removed from the slotted mandrel by the automated stripping system. The Stiff Stay Machine also features light screens and electric trip systems and guards to keep the operating staff safe and stop the machine automatically in the event of a wire breakage or tangle.
The Hinge Joint Machine is available in two models that both have interchangeable stay wire pitches of 6” (152mm) and 12” (304mm). The standard machines are designed for fences with up to 11 line wires to a maximum height of 55 inches (1.410 metres), which is found on Model #HJM-S2, and the wide machines allow for up to 14 line wires with a maximum fence height of 78 inches (2 metres) which is found on Model #HJM-W2. The wide machines can produce the same fence specifications which can be made on standard machines. This allows for the manufacture of Deer Fence, Predator Control Fence or low cost Security Fence, all of which require greater than normal height. The Hinge Joint Machine operates differently from the Fixed Knot and the Stiff Stay models in that it utilizes the following manufacturing steps: (1) 10 wires (number may vary depending upon the type of fence being manufactured) lie parallel in the horizontal plane at a certain distance from each other, (2) the 1st stay wire is placed at a 90 degree angle over those 10 parallel line wires and wrapped around the 1st line wire and the 2nd line wire; this is where the wire will be cut. This is repeated for stay wire 2 till 9. The 9th stay wire will connect the 9th and 10th line wire., (3) once all the knots are formed, the machine will pull the 10 lines wires to a predetermined amount of inches forward, (4) the roll of fence being formed rotates sufficiently to pick up the extra length thus formed, (5) steps 2, 3 and 4 are continuously repeated as necessary until the fence has reached its predetermined length at which point the 10 line wires are cut and the roll is turned out.
In your original letter dated October 27, 2010, you suggest that the fence making machinery would be correctly classified under the special provision for machinery, equipment and implements to be used for agricultural or horticultural purposes in 9817.00.5000, Harmonized Tariff Schedule of the United States (HTSUS). The National Import Specialist who is responsible for this HTSUS number has reviewed your submission and indicates that this is not correct. The industrial process of making fencing is not an agricultural or horticultural pursuit. Therefore, classification of these machines under the special provision 9817.00.5000 is not appropriate.
Alternatively, you also propose classifying the machines in subheading 8479.90.9496, HTSUS, which provides for Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Parts: Other: Other: Other. As justification for this proposal you state that, in your opinion, no specific provision appears in Chapter 84 of the HTSUS for goods of type in question.
The Harmonized Commodity Description and Coding System Explanatory Notes ("ENs") constitute the official interpretation of the Harmonized System 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). Note (3) to heading 84.63 states that machines for working wire for the purpose of manufacturing wire goods such as barbed wire and staples are classified in heading 84.63. As specific provision exists for machine tools which work wire, classification in heading 8479, HTSUS, is precluded. In addition, subheading 8479.90.9496, HTSUS, is a provision for parts, not specified or included elsewhere, of machines which are themselves classified in heading 8479, HTSUS.
The applicable subheading for Model # FKM 27-3D, Model #FKM 30-3D, Model #SSM 20-3, Model #SSM 26-3D, Model #HJM-52 and Model #HJM-W2, imported complete but unassembled, will be 8463.30.0080, HTSUS, which provides for Other machine tools for working metal or cermets, without removing material: Machines for working wire…Other. The rate of duty will be 4.4 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Patricia O’Donnell at (646) 733-3011.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division