CLA-2-84:OT:RR:NC:N1:104
Mr. Joseph E. Church
Lacrosse Footwear Inc.
17634 NE Airport Way
Portland, OR 97230
RE: The tariff classification of an Automated Leather Cutting System from Italy
Dear Mr. Church:
In your letter dated November 21, 2016 you requested a tariff classification ruling.
The importation consists of three separate machines used for the purpose of cutting leather footwear pieces from a leather hide that will later comprise a finished piece of footwear. These machines are imported together in the same shipment but they are not connected to each other during use.
Model NT XL consists of 1 inspection table with a conveyor belt, a curtain and cameras. Model NT XL is considered a digitizing machine used for data gathering of leather hides. This data will be used in the projection of the patterns on the hides that need to be cut. The NT XL machine is used for leather measurement, grading and yield calculation. It consists of a metal base, a synthetic work platform, a conveyor belt and high definition cameras.
Model CZ XL is a numerically controlled cutting machine using a computer that executes the stored data in the cutting of the leather hides. Two Model CZ XL units are included in this importation. Each one has its own operating system. Cutting is performed by a knife that oscillates vertically. The model is designed for use principally with leather. While the cutting machine could also cut textiles and synthetic materials, you state that the unit would have to be reconfigured and different cutting blades used. Models NT XL and the CZ XL can interface for automation but they do not gain any functionality through that interface. They send data back and forth but they do not work in conjunction or process the same data at the same time.
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation ("GRIs"). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6, taken in order.
The importation consisting of the above described three machines meets the definition of Section XVI, Legal Note 4 of the HTS. Note 4 of Section XVI, HTSUS states 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.
The NT XL and CZ XL models contribute together to the clearly defined function of cutting leather footwear pieces from a leather hide that will later comprise a finished piece of footwear.
In your October 14, 2016 letter, you propose classifying the machines under subheading 8453.10.0000, HTSUS, which provides for “Machinery for preparing, tanning or working hides, skins or leather or for making or repairing footwear or other articles of hides, skins or leather, other than sewing machines; parts thereof: Machinery for preparing, tanning or working hides, skins, or leather”. In considering your proposal, this office consulted the Explanatory Notes (“ENs”). The ENs constitute the official interpretation of the Harmonized System (“HS”). The ENs, although neither legally binding nor dispositive of classification issues, provide commentary on the scope of each heading of the HS and are consulted for guidance by the Customs Service. The group of machines encompassed by subheading 8453.10 are listed in EN Note (I) to 84.53. These machines, which are used in the processing of the hides, include fleshing machines, de-hairing machines and hammering machines. Machines which cut out leather in particular shapes are listed in EN Note (II) to 84.53 under “Machinery for making or repairing footwar or other articles of hides, skins or leather”.
The applicable subheading for the Automated Leather Cutting System, as described above, will be 8453.80.0000, HTSUS, which provides for “Machinery for preparing, tanning or working hides, skins or leather or for making or repairing footwear or other articles of hides, skins or leather, other than sewing machines; parts thereof: Other machinery”. The rate of duty will be free.
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 https://hts.usitc.gov/current.
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,
Steven A. Mack
Director
National Commodity Specialist Division