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HQ 085393


September 20, 1989

CLA-2:CO:R:C:G 085393 JMH

CATEGORY: CLASSIFICATION

TARIFF NO.S: 8208.20.00; 8466.10.00

Mr. Joe Spiegel
Onsrud Cutter Inc.
800 Liberty Drive
P.O. Box 550
Libertyville, IL 60048

RE: Cutterhead, machine tool

Dear Mr. Spiegel:

Your letter of July 20, 1989 to our New York office requesting a ruling under the Harmonized Tariff Schedule of the United States (HTSUSA) has been forwarded to this office for a reply.

FACTS:

The merchandise is known as the TERSA cutterhead and will be used with industrial planers, joiners, shapers, and for other woodworking functions. It is designed to be tolerance fit over a specific machines's spindle. This cutterhead has been described to us as a composition of parts. Steel washers are pressed over a central aluminum alloy core. The core houses two press-fit and glued bushings. Washers are precisely located by two keyway slots milled into the core OD, 180 degrees apart and parallel to the bushing bore. Washers are stacked the entire length of the core to form the cutting edge length, the cutting edge diameter and the knife port. End pieces serve to retain the washers and to identify the tool dimensions.

The cutterhead's knives are double sided and made of high speed steel or tungsten carbide. They are intended to be discarded after use. Four knives are included with each imported cutterhead. Replacement knives will be imported separately in bulk.

ISSUE:

What is the appropriate classification of the TERSA cutterhead?

LAW AND ANALYSIS:

According to General Rule of Interpretation 1 of the HTSUSA, classification of goods is "determined according to the terms of the heading and any relative section or chapter notes." We cannot agree with your suggestion that the TERSA cutterhead is classified under heading 8208.20, HTSUSA, because the cutterhead acts as a holder for the knife or cutting blade. Thus, the imported article consists of a holder and blades not just blades.

The TERSA cutterhead holds the knives and permits their interchange, thereby functioning as a tool holder. Explanatory Note 84.66 (1) of the Harmonized Commodity Description and Coding System, Vol. 3, p. 1288, defines tool holders as articles "which hold, guide or operate the working tool and which permit the interchange of such tool-pieces."

The applicable classification for the TERSA cutterhead and its four original knives is subheading 8466.10.00, HTSUSA. This subheading describes "parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders..." Woodworking machines are included in heading 8465, HTSUSA. The rate of duty for the cutterhead and four knives will be 4.9 percent ad valorem.

The suggested subheading 8208.20.00, HTSUSA, is the proper classification for the replacement knives to be imported separately in bulk. Explanatory Notes 82.08 states the heading applies to "unmounted knives or cutting blades...for machines or other mechanical appliances." The rate of duty for the replacement knives is 3.7 percent ad valorem.

HOLDING:

The TERSA cutterhead is a tool holder for tariff purposes and classified with its four knives under 8466.10.00, HTSUSA. The cutterhead is dutiable at 4.9 percent ad valorem. The
replacement knives to be shipped separately in bulk are classified under 8208.20.00, HTSUSA, and dutiable at 3.7 percent ad valorem.

Sincerely,

John Durant, Director
Commercial Rulings Division

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