CLA-2-84:OT:RR:NC:N1:105
Scott Westphal
Can Components Corporation
201 South Biscayne Blvd, 28th Floor
Miami, FL 33131
RE: The tariff classification of a metal container side striping system from China
Dear Mr. Westphal:
In your letter dated August 19, 2018, you requested a tariff classification ruling.
The product at issue is described as a Metal Container Side Striping System. The system, which is intended for use with metal container (can) manufacturing lines, comprises two components, a powder coating system and an induction cure unit. You inquire about the classification of the complete system, as well as the classification of the individual components when imported separately.
Per the information contained in your submission, the Metal Container Side Striping System is used in conjunction with metal container manufacturing lines. Three-piece welded side seam metal containers (such as cans, pails, and drums) are manufactured by other machinery in the line. Throughout the manufacturing process, these containers have a narrow, non-lacquered region to facilitate conductivity during the electrical welding process that forms the container’s cylindrical body. Immediately after welding, the Metal Container Side Striping System serves to spray the non-lacquered region with a solvent-based lacquer or powdered polyethylene coating, and then thermally cures the coating. This treatment ensures that any food or chemical products placed in the finished containers will not oxidize (rust) the unprotected metal region.
The powder coating system consists of a powder-dispensing regulator with an associated spray arm, and is designed to be connected to an existing can manufacturing line. The powder unit delivers the powdered polyethylene coating to the spray arm, which then sprays the powder coating onto the metal containers as they travel along the line. The angle, spray pattern, and powder coating thickness can all be adjusted based on the particulars of the line and the types of containers that are being coated.
The induction cure system is also designed to be connected to a can manufacturing line, and is intended to be positioned in close proximity to the powder coating system. After the containers have been sprayed with the powdered polyethylene coating, they travel on a conveyor and pass through the induction cure system, which uses electromagnetic and microwave heating elements to thermally cure the polyethylene coating.
In your submission you indicate that the powder coating system and the induction cure system are two precision instruments designed to work in conjunction with one another to form the complete Metal Container Side Striping System. The essential character of the complete system is imparted by the powder coating apparatus, and would be classified accordingly.
The applicable subheading for the complete Metal Container Side Striping System will be 8424.89.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines; parts thereof: Other appliances: Other: Other. The general rate of duty will be 1.8 percent ad valorem.
The applicable subheading for the powder coating system, when imported separately, will be 8424.89.9000, HTSUS, which provides for Mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines; parts thereof: Other appliances: Other: Other. The general rate of duty will be 1.8 percent ad valorem.
The applicable subheading for the induction cure unit, when imported separately, will be 8514.40.0000, HTSUS, which provides for Industrial or laboratory electric furnaces and ovens (including those functioning by induction or dielectric loss); other industrial or laboratory equipment for the heat treatment of materials by induction or dielectric loss; parts thereof: Other equipment for the heat treatment of materials by induction or dielectric loss. The general rate of duty will be free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. Subsequently, USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710) and August 16, 2018 (83 F.R. 40823). Products of China that are provided for in subheading 9903.88.01 or 9903.88.02 and classified in one of the subheadings enumerated in U.S. note 20(b) or U.S. note 20(d) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8424.89.9000 and subheading 8514.40.0000, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8420.10.9080 or subheading 8514.40.0000, HTSUS, listed above.
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 the 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 Evan Conceicao at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division