CLA-2-84:OT:RR:NC:N1:104
Mr. Brent Cheney
Russell A. Farrow (U.S.) Inc.
8053 E. Bloomington Fwy
Suite 400
Bloomington, MN 55420
RE: The tariff classification of Horizontal Drills and a Power Pack from Finland
Dear Mr. Cheney:
In your letter dated June 15, 2017, on behalf of your client, EBI Drilling Inc., you requested a tariff classification ruling.
The importation consists of two horizontal drills, model numbers HZR220 and HZR400, and one power pack, model number PP90-2. The difference between the HZR200 and the HZR400 is the size of the maximum drill diameter which is accepted by each model. The number indicates the maximum drill diameter in millimeters. You state that the drills are designed for use solely and principally in rock breaking and/or tunneling operations and that they are not suitable for breaking concrete or bituminous/asphalt. Down the Hole (“DTH”) Hammer Drilling is said to be suitable for almost all soil types and for rock. Neither the compressors nor the tools are included in this importation. The equipment is not self-propelled. It is transported to the worksite on suitable flatbed trucks (also not included in this importation).
The PP90-2 can be used as a power source (power pack) for the HZR220 and the HZR400 models. You indicate that in the importation under consideration there are two drills and only one power pack. The HZR220 and the HZR400 are said to be capable of working in combination with each other. However, the PP90-2 cannot be used as a power souce for both drill models simultaneously. Thus, with only one power pack, only one horizontal drill can perform its function at any given time. This combination of one drill and one power pack forms one drilling system.
Note 4 to Section XVI which includes Chapter 84 states the following:
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.
Note 5 to Section XVI which includes Chapter 84 states the following:
For purposes of these notes, the expression “machine” means any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of chapter 84 or 85.
By application of Section XVI, Note 4, the applicable subheading for the drilling system comprised of one horizontal drill and one power pack will be 8430.49.8050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Other moving, grading, leveling, scraping, excavating, tamping, compacting, extracting or boring machinery, for earth, minerals or ores: pile-drivers and pile-extractors; snowplows and snowblowers: Other boring or sinking machinery: Other: Other … Other”. The rate of duty will be Free.
The applicable subheading for second horizontal drill will be 8430.49.8050, HTSUS, which provides for “Other moving, grading, leveling, scraping, excavating, tamping, compacting, extracting or boring machinery, for earth, minerals or ores: … Other”. 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