CLA-2-84:OT:RR:NC:1:104
Mr. Curtis R. Spieker
KMT Waterjet Systems, Inc.
635 W. 12th Street
Baxter Springs, KS 66713
RE: The tariff classification of components for a water-jet cutting machine
Dear Mr. Spieker:
In your letter dated September 26, 2012, you requested a tariff classification ruling.
The cutting head and pump in question are components of a water-jet cutting system. Complete systems are designed to cut materials by a process using streams of water. Depending upon the material to be cut, water may be mixed with fine abrasives.
As you state in your letter, the classification of the separately imported pump designed for use with the water jet cutting machine was previously addressed in NY ruling N216780 dated June 7, 2012. The pump was classified in subheading 8413.81.0040, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other pumps for liquids.
You have requested a ruling as to the tariff classification of these components under the following two scenarios:
the pump and the cutting head shipped together but disassembled, i.e., pump not attached to the head and
the pump and cutting head shipped separately due to availability of inventory.
The following items will not be included in the shipments: (1) the holding table which holds the work pieces and the water to absorb the high pressure stream, (2) the controller which allows the machine to interface with the pump and cut patterns, control the feed rate, water pressures, etc. and (3) the XY arm to which the cutting head is attached. Submitted picture of a complete system shows that the pump, while free-standing, is interconnected to the balance of the system.
You propose that, when shipped together, the pump and the cutting head possess the essential character of a water-jet cutting system. As such, you propose that the goods be classified in subheading 8456.90.2100, HTSUS, which provides for “Machine tools for working any material by removal of material, by laser or other light or photon beam, ultrasonic, electro-discharge, electro-chemical, electron-beam, ionic-beam or plasma arc processes; water-jet cutting machines: Other: Water-jet machines”.
Section XVI, Note 4, HTSUS, covers machines consisting 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 chapters 84 or 85. The whole, in such cases, is classified in the heading appropriate to that function. The applicable subheading for a complete water-jet cutting system would 8456.90.2100, HTSUS.
General Rule of Interpretation 2(b) [“GRI 2(b)”], HTSUS, extends the scope of a heading to include goods imported incomplete or unfinished provided that, as imported, the incomplete or unfinished good has the essential character of the complete or finished good.
As stated in GRI Explanatory Note 3(b)(VIII) :
the factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods.
In this case, it is the last factor that is the most persuasive in this case. It is the cutting head that together with the pump performs the actual cutting function. The cutting head and pump represent the aggregate of distinctive component parts that establish the identity of the importation as apparatus performing the clearly defined function of water-jet cutting as described in subheading 8456.90.2100, HTSUS. It is the opinion of this office that the essential character of the water-jet cutting machine is imparted by the pump and cutting head when shipped together. While you indicate that the water-jet pump and components including the cutting head comprise 25 – 35% of the cost of an entire system, these two components play the primary role in relation to the use of the water-jet cutting system. Without these two main components, it would be impossible for the water-jet cutting system to function as intended.
The applicable subheading for the cutting head and pump, shipped under scenario (A), will be 8456.90.2100, HTSUS.
The applicable subheading for the cutting head, shipped under scenario (B), will be “Parts and accessories suitable for use solely or principally with the machines of headings 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: For machines of headings 8456 to 8461: For water-jet cutting machines”.
The applicable subheading for the pump assembly, shipped under scenario (B), will be 8413.81.0040, HTSUS.
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,
Thomas J. Russo
Director
National Commodity Specialist Division