United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1992 HQ Rulings > HQ 0950435 - HQ 0950566 > HQ 0950464

Previous Ruling Next Ruling


HQ 950464


October 30, 1991

CLA-2 CO:R:C:M 950464 LTO

CATEGORY: CLASSIFICATION

TARIFF NO.: 8422.90.90

Steven S. Weiser, Esq.
Arthur W. Bodek, Esq.
Siegel, Mandell & Davidson, P.C.
One Astor Plaza
1515 Broadway
New York, N.Y. 10036

RE: Housings for industrial high density hydraulic balers; NY 850321; HQ 556103; EN 84.22

Dear Mr. Weiser and Mr. Bodek:

This is in reply to your letter of June 21, 1991, on behalf of Piqua Engineering, Inc., in which you request the tariff classification, GSP eligibility and country of origin marking requirements for housings for industrial high density hydraulic balers. In HQ 556103, dated October 7, 1991, you were advised that the cost or value of the steel sheets imported into Mexico and used in the manufacture of the baler housing units may be included in the GSP value-computation. You were further advised that the tariff classification and country of origin marking requirements would be answered in separate ruling letters. Our decision on the classification of the housings follows.

FACTS:

Piqua is contemplating the importation of baler housings in two possible stages of production, either: 1) a baler housing into which a motor has been installed; or 2) a baler housing into which a motor and an electrical system has been installed. The industrial high density baler housing unit will be imported into the United States where it will be combined with U.S. origin components in the manufacture of the completed high density hydraulic baler. The finished baler will be used as a waste management and recycling system which is designed to produce dense bales for the recycling industry, thereby reducing material handling time, storage space, transportation costs, etc.

ISSUE:

What is the proper classification for the housings under the Harmonized Tariff Schedule of the United States Annotated

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUSA govern the classification of goods in the tariff schedule. GRI 1 states in pertinent part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ." Heading 8422, HTSUSA, provides for "other packing or wrapping machinery." The Harmonized Commodity Description and Coding System Explanatory Note (EN) 84.22, pg. 1184, states that this heading covers "[b]aling or banding machinery." In NY 850321, dated March 22, 1990, a finished industrial high density hydraulic baler, also imported by Piqua, was classified under subheading 8422.40.90, which provides for "[o]ther packing or wrapping machinery . . .

Subheading 8422.90.90, HTSUSA, provides for "parts" of packing or wrapping machinery. Section XVI, Note 2(b) states that "parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading . . . are to be classified with the machines of that kind." The subject housing and motor (with or without the electrical system) is identifiable by its shape and construction as a part designed solely or principally for use in the construction of a baler. The imported housing (with or without the electrical system) cannot be used on its own. Rather, it must be combined with the essential U.S. components (hydraulic cylinder, platen, platen coupling, etc.) to form an article capable of fulfilling any function, namely, that of a fully operational hydraulic baler. The imported article is dedicated exclusively as a necessary component of a baler, and is classifiable as a "part" of packing or wrapping machinery under subheading 8422.90.90, HTSUSA.

HOLDING:

The housings, in either stage of production, are classifiable under subheading 8422.90.90, HTSUSA, which provides for "[o]ther packing or wrapping machinery . . . [p]arts . . .

Sincerely,

John Durant, Director

Previous Ruling Next Ruling

See also: