CLA-2-84:OT:RR:NC:N1:104
Mr. John M. Strough
Mohawk Global Logistics
P.O. Box 3065
Syracuse, NY 13220
RE: The tariff classification of a Foundation Kit from Taiwan
Dear Mr. Strough:
In your letter dated January 25, 2016, on behalf of your client, Hardinge Inc., you requested a tariff classification ruling. The submitted drawings that was submitted with the ruling will be returned as requested.
The importation consists of a H51 Foundation Kit used in the assembly of a pedestal for a H51 Slant Bed Lathe Machine. At time of importation, the H51 Foundation Kit consists of a base, a carriage, a cross slide, a CNC control, a power case and sheetmetal. The kits are imported under different part numbers and descriptions based on the CNC control configuration. Additional sub-assemblies for the lathe, i.e., the main spindle, the turret and sub spindle or the tailstock, are built in the United States. Subsequent to the H51 Foundation Kit’s importation, these additional sub-assemblies, along with other critical parts needed to make the lathe functional, are added to the pedestal in the United States.
Your ruling request proposed that the H51 Foundation Kit be classified under subheading 8457.11.0010, Harmonized Tariff Schedule of the United States (HTSUS), as “Lathes (including turning centers) for removing metal; Horizontal Lathes: Numerically controlled … Multiple Spindle”. Proposed tariff number does not exist in the tariff. It is this office’s belief that the “8457” is a typographical error and that the tariff number number you are actually requesting is subheading 8458.11.0010, HTSUS. In HQ 952404 dated October 19, 1992, HQ stated that such lathes must have at least certain basic components such as the bed, head-stock, tailstock, carriage and cross-slide, collectively referred to as the machine’s “iron”, in order to have the essential character of a lathe of heading 8458, HTSUS. The imported kit contains only three out of the five critical components, i.e., the base or bed, carriage and cross slide. Thus, in this office’s opinion, the importation does not comprise an incomplete machine tool having the essential character of a lathe.
General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (HTSUS), states in part that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS, i.e., (a) specific description, (b) essential character and (c) heading which occurs last in numerical order. GRI 3(a) states in part that when two or more headings each refer to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific, even if one heading gives a more precise description of the goods. In such cases, the classification of the set is to be determined by GRI 3(b) or GRI 3(c) taken in the appropriate order in which they are set out in GRI 3.
The Explanatory Notes represent the official interpretation of the Harmonized Tariff Schedule at the international level. GRI 3 applies when goods are put up for sale collectively and are classifiable under two or more headings of the tariff. GRI 3(b) covers goods put up in sets for retail sale. Explanatory Note X to GRI 3(b) defines "goods put up in sets for retail sale". Such goods: (a) consist of at least two different articles that are classifiable in different headings, (b) consist of products put up together to meet a particular need or carry out a specific activity, and (c) are put up in a manner suitable for sale directly to users without repacking. The H51 Foundation Kit contains articles that are classifiable under different headings of the tariff. The subject articles in the H51 Foundation Kit meet the criteria for products put up together to carry out a specific activity, i.e., the assembly of a pedestal. For the purposes of the HTSUS, the imported goods constitute a set.
According to the Explanatory Notes to GRI 3(b), essential character may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the goods. In this case, the basic iron components, i.e., the base or bed, carriage and cross slide, impart the essential character to the H51 Foundation Kit.
The applicable subheading for the H51 Foundation Kit will be 8466.93.5385, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “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: Other: Bed, base, table, head, tail, saddle, cradle, cross slide, column, arm, saw arm, wheelhead, tailstock, headstock, ram, frame, work-arbor support, and C-frame castings, weldments or fabrications: Other: Other … Other. The rate of duty will be 4.7 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 [email protected].
Sincerely,
Deborah C. Marinucci
Acting Director
National Commodity Specialist Division