CLA-2-84:OT:RR:NC:N1:118
Maria De Gannes
A Customs Brokerage
2750 NW 84th Ave.
Doral, FL 33122
RE: The tariff classification of a disposable diaper making machine from China.
Dear Ms. De Gannes:
In your letter dated March 11, 2022, on behalf of your client, Apogee Medical Supplies USA, LLC, you requested a tariff classification ruling.
Your client plans to import a line of machinery that is identified as a Nateen diaper making machine. It is used to produce six sizes of disposable diapers with tape and/or ultrasound closures. The machine can produce from 150-300 diapers per minute. The raw materials used include fluff pulp, super absorbency polymer, tissue paper, nonwoven PE film, spandex, glue, Velcro tape and polypropylene tape. The interconnected line of machinery consists of the following components:
1-2 automatic holders for unwinding rolls of cellulosic pulp
1-2 drum units consisting of a hammermill used to break up the sheets of pulp into fluff and to form it into a layer
1-2 super absorbent application units equipped with an electronic scale
Tissue paper layer application unit
Transversal cut system used to cut the diaper material
Nonwoven layer application unit
Plastic layer application unit
Glue system for gluing the tissue, nonwoven and plastic layers, as well as an elastic band and leg cuffs
1-2 closure tape application units
Die cutting section to cut the material to the proper shape and size
Folding unit to fold the completed diapers
Vertical counter stacker that counts the diapers and forms them into stacks for subsequent packaging
Electrical control system
Compressed air system
Dust filter system
End conveying system
You have stated that the components will be imported disassembled in one shipment. The shipment will contain all of the components needed to assemble the finished Nateen diaper making machine.
You suggested classifying the Nateen diaper machine within subheading 8479.89.9499, Harmonized Tariff Schedule of the United States (HTSUS), which provides for machines and mechanical appliances having individual functions, not specified or included elsewhere (in chapter 84): other machines and mechanical appliances: other: other: other: other. We disagree.
Note 4 to Section XVI of the Harmonized Tariff Schedule of the United States (HTSUS), describes a functional unit as a machine or combination of machines consisting of individual components (whether separate or interconnected by piping, transmission devices, electric cables or by other devices) intended to contribute together to a clearly defined function covered by one or more of the headings in chapter 84 or chapter 85. The whole then falls to be classified in the heading appropriate to that function. The disposable diaper converting machine meets this description, with the clearly defined function of producing disposable diapers from paper pulp. This matter was resolved by the Court of International Trade (CIT) in National Presto Industries, Inc., v. United States, Slip Op. 11-84, Court No. 07-00245, dated July 18, 2011.
The applicable subheading for the Nateen diaper making machine will be 8441.80.0000, HTSUS, which provides for other machinery for making up paper pulp, paper or paperboard, including cutting machines of all kinds, and parts thereof. The general rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8441.80.0000, HTSUS, unless specifically excluded, are subject to an 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 8441.80.0000, HTSUS, listed above. The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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, National Import Specialist Anthony E. Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division