CLA-2-82:OT:RR:NC:N1:118
Mr. Patrick Roche
Voestalpine High Performance Metals Corp.
2505 Millenium Drive
Elgin, IL 60124
RE: The tariff classification of unfinished slitting knives from Austria
Dear Mr. Roche:
In your letter dated January 8, 2021, you requested a tariff classification ruling.
The items under consideration, identified as unfinished razor blades, part number 3951095, are commonly referred to as slitting knives. They are designed for use in machinery used in the production and manufacturer of cardboard. Multiple slitting knives are used within a cardboard corrugating machine in order to cut through several layers of cardboard. Each blade is made of steel and in the form of a thin round disc. The disc has an outside diameter of approximately 10” and has eight mounting holes drilled into the side. You have stated that the blades will be imported unfinished. After importation, the inside diameter of each blade is reamed to a final tolerance, the sides are ground to a mirror finish, and the outside diameter is beveled and sharpened.
In your original submission, dated November 4, 2020, you suggested that the slitting knives are classified within subheading 8441.90.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts of paper or paperboard machinery, including cutting machines of all kinds. You cited New York Ruling N264597 as guidance for this determination. The corrugating rolls described in that ruling form wave-like flutes in cardboard. They do not cut through cardboard. As such, your suggested classification is not applicable to the instant slitting knives, which perform a cutting function.
Merchandise is classifiable under the 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. GRI 2(a) extends the scope of the HTS headings to include an unfinished article, provided that it has the essential character of the finished article. GRI 2(a) further states that:
Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
In addition, Explanatory Note (EN) II under GRI 2(a) states that:
The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term "blanks" means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part. Semi-manufactures not yet having the essential shape of the finished articles (such as is generally the case with bars, discs, tubes, etc.) are not regarded as "blanks."
Thus, two criteria which an article must meet in order to be classified as a blank for purposes of GRI 2(a) are: (1) it must possess the approximate shape or outline of the finished article, and (2) the sole use must be for completion into the finished article. In this case, GRI 2(a) is applicable to the blades in question. They are blanks by definition and by statements found in your submission. At the time of importation, they meet the two criteria stated above. Each blade has the approximate shape or outline of a finished slitting knife and cannot be used for any other purpose other than for use in a cardboard corrugating machine. Information found in your submission indicates that the slitting knives are each a net shape blank, which closely approximates the outline of the finished article it will form. Although each blade requires some post-importation processing, upon importation it is readily recognizable as the finished article it will become. Further, there is nothing to suggest that the article has any practical use other than for use in a cardboard corrugating machine. Thus, this office finds that the slitting knives are unfinished articles which have the essential character of complete or finished goods of heading 8208, HTSUS.
The applicable subheading for the unfinished razor blades, part number 3951095, will be 8208.90.6000, HTSUS, which provides for knives and cutting blades, for machines or for mechanical appliances, and base metal parts thereof: other: other (including parts). The general 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 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 Anthony Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division