CLA-2-84:OT:RR:NC:1:104
Mr. Charles Trulis
American Lamprecht Transport
2218 Landmeier Road
Elk Grove Village, IL 60007
RE: The tariff classification of a gear manufacturing machine from Germany and Switzerland
Dear Mr. Trulis:
In your letter dated August 24, 2011 on behalf of The Gleason Works, you requested a tariff classification ruling.
The Agilus 180 TH is a CNC-controlled, multi-functional machine designed for the processing of all kinds of cylindrical gears. Such processes to be performed in the same setting include turning, drilling, milling, hobbing, chamfering and deburring. Whether or not the workpiece remains stationary depends on the process, e.g., drilling requires that the workpiece does not rotate while hobbing needs the workpiece spindle to rotate. Regardless of the process utilized, the workpiece will remain in the fixture until all processes have been finished. The machine’s tool turret is designed to take up to twelve tools which are changed manually by the operator. The twelve tool turret is said to include the chamfering/deburring tool. The multi-spindle machine is said to differ from a regular turret lathe in that it is also capable of hobbing cylindrical gear teeth.
Section XVI, Note 3, Harmonized Tariff Schedule of the United States (HTSUS), states, in relevant part, that “machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function”. In addition, General Explanatory Note (VI) to Section XVI states, with respect to multi-function machines and composite machines, that where it is not possible to determine the principal function and where, as provided in Note 3 to Section XVI, the context does not otherwise require, it is necessary to apply General Rule of Interpretation (“GRI”) 3(c). GRI 3(c) requires classification in the last heading from among those which equally merit consideration. In this case, both the turning and gear hobbing operations are of equal merit. Thus, the two headings which merit equal consideration are heading 8458, HTSUS, which provides for Lathes (including turning centers) for removing metal and heading 8461, HTSUS, which provides for Machine tools for planing, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cutting-off and other machine tools working by removing metal or cermets, not elsewhere specified or included. As there is no one principal function, the Agilus 180 TH is classifiable in accordance with GRI 3 (c), i.e., in the last heading from among those with equally merit consideration, i.e., heading 8461, HTSUS.
The applicable subheading for the Agilus 180 TH will be 8461.40.1030, HTSUS, which provides for Machine tools for planing, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cutting-off and other machine tools working by removing metal or cermets, not elsewhere specified or included: Gear cutting, gear grinding or gear finishing machines: Gear cutting machines … Other: Gear hobbers. The rate of duty will be 5.8 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