HQ 0950570 - Protest No. 1704-91-100092; Caddy, RTP Control Panel; MUT 3 Circuit Board; 8443; EN 84.43; EN 85.37; Section XVI, Note 2(a); Chapter 85, Note 4 - United States International Trade Commision Rulings

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HQ 950570

July 31, 1992

CLA-2 CO:R:C:M 950570 LTO

CATEGORY: CLASSIFICATION

TARIFF NO.: 8537.10.00; 8538.90.00

District Director
U.S. Customs Service
700 Doug Davis Drive
Atlanta, Georgia 30354

RE: Protest No. 1704-91-100092; Caddy, RTP Control Panel; MUT 3 Circuit Board; 8443; EN 84.43; EN 85.37; Section XVI, Note 2(a); Chapter 85, Note 4

Dear Sir:

This is our response regarding Protest No. 1704-91-100092, dated April 8, 1991, which pertains to the classification of the Caddy, RTP Control Panel and the MUT 3 Circuit Board under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The articles in question are the RTP Control Panel and the MUT 3 Circuit Board. The Control Panel is a device that controls the reel stand, which is used to provide the printing press with paper. The Circuit Board is a component of the Control Panel.

The RTP Control Panels are programmable controllers which control the feed rate of paper to the reel stand in the printing process without human intervention. The Control Panels measure web speed, paper thickness and core diameter. The computer incorporated into this system waits for these measurements to reach a specific value--the value that the "dip switches" (computer cards) are set. When the measurements reach the set value, the "spider arm," which holds the rolls of paper, rotates so that a new roll of paper will be close to the expiring roll. When the roll expires, the old roll is automatically replaced by the new roll, so that the printing press can continue to operate without having to stop to change the paper roll. This process is called "splicing." The "spider arm" and the "reel stand" are not a part of the Control Panels. - 2 -

The MUT 3 Circuit Boards provide a signal connection between the reel arm and the programmable controller. When connected to the Control Panel, these boards control paper margin and the "chucks," the devices which grab the tube in the center of a paper roll.

Both of the articles in question were entered under subheading 8443.19.10, HTSUS, which provides for "[p]rinting machinery . . . [o]ffset printing machinery . . . [o]ther . . . [w]eighing 1,600 kg or more." The Control Panels were liquidated under subheading 8537.10.00, HTSUS, which provides for "[b]oards, panels . . ., consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity . . . [f]or a voltage not exceeding 1,000 V." The Circuit Boards were liquidated under subheading 8538.90.00, HTSUS, which provides for "[p]arts suitable for use solely or principally with the apparatus of heading 8535, 8536 or 8537 . . . [o]ther."

ISSUE:

Whether the control panels and circuit boards are classifiable as offset printing machinery, as claimed, or in the alternative, as machines for uses ancillary to printing, or as parts of printing machinery under the HTSUS.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUS 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 . . . ."

1. RTP Control Panels

The headings at issue are as follows:

8443 Printing machinery; machines for uses ancillary to printing; parts thereof

8537 Boards, panels (including numerical control panels), consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity . . .

The Control Panels were entered under subheading 8443.19.10, HTSUS, which describes other offset printing machinery. EN 84.43, pg. 1238, states that "[t]his heading covers all machines used for printing by means of the type, printing blocks, plates or cylinders of the previous heading . . . ." The heading can be broken down into three main categories: (1) printing presses, including ordinary presses and platen presses; (2) cylinder printing machines; and (3) rotary presses. EN 84.43, pgs. 1238- 1239. It is clear that the Control Panels are not covered by this portion of Heading 8443, HTSUS. The Control Panels merely aid the printing process by controlling the rotation of the "spider arm," which allows the process to continue unhindered when a paper roll expires. The Control Panels are not "for printing," and do not fall within any of the above listed categories. Thus, they are not covered by subheading 8443.19.10, HTSUS.

However, Heading 8443, HTSUS, also covers machines for uses ancillary to printing, as well as, parts of printing machinery. EN 84.43, pg. 1238, states that Heading 8443, HTSUS, includes "[a]ncillary machinery (whether or not presented separately) . . . provided they are specially designed as ancillary machines to printing machines [emphasis in original]." Ancillary machines are used "during or after the printing operation for feeding, handling or further working the sheets or rolls of paper . . . [and] are usually separate from the printing machine itself." EN 84.43, pg. 1240.

The Control Panels, which are separate from the printing machine, supplement the printing process by controlling the "spider arm" of the reel stand. They are used during the printing operation for feeding the rolls of paper. Thus, they are described by Heading 8443, HTSUS, specifically by subheading 8443.60.00, HTSUS.

EN 85.37, pg. 1391, states that the articles of Heading 8537, HTSUS, "consist of an assembly of apparatus of the kind referred to in the two preceding headings . . . on a board, panel, console, etc., or mounted in a cabinet, desk, etc." The heading includes "'[p]rogrammable controllers' which are digital apparatus using a programmable memory for the storage of instructions for implementing specific functions such as logic, sequencing, timing, counting and arithmetic, to control, through digital or analog input/output modules, various types of machines." EN 85.37, pg. 1391. The Control Panels are programmable controllers which, when certain measurements reach a set value, control the feed rate of paper without human intervention. Thus, they are also described by Heading 8537, HTSUS.

The Control Panels are prima facie classifiable under two headings--Heading 8443 and 8537, HTSUS. GRI 3(a) states that "[w]hen, by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: The heading which provides the most specific description shall be preferred to headings providing a more general description."

It is our opinion that Heading 8537, HTSUS, is more specific than Heading 8443, HTSUS. Heading 8537, HTSUS, specifically describes the article in question. Heading 8443, HTSUS, describes a particular class of goods--machines for uses ancillary to printing, while Heading 8537, HTSUS, describes a specific type of machine that can be used ancillary to printing- -a board, panel, etc. for electric control or the distribution of electricity. Thus, the Caddy, RTP Control Panel is classifiable under Heading 8537, HTSUS, specifically under subheading 8537.10.00, HTSUS.

Section XVI, Note 2(a), states that parts of machines are to be classified as follows: "[p]arts which are goods included in any of the headings of Chapters 84 and 85 . . . are in all cases to be classified in their respective headings [emphasis added]." Thus, the Control Panels cannot classifiable as parts of printing machinery under Heading 8443, HTSUS.

2. MUT 3 Circuit Boards

Heading 8538, HTSUS, describes parts suitable for use solely or principally with the apparatus of Heading 8537, HTSUS. The MUT 3 Circuit Boards are component parts of the Caddy, RTP Control Panel, which, as we have determined above, is classifiable under Heading 8537, HTSUS. Thus, the circuit boards are classifiable under Heading 8538, HTSUS, specifically under subheading 8538.90.00, HTSUS, which describes other parts of panels for electric control or the distribution of electricity.

HOLDING:

The Caddy, RTP Control Panel is classifiable under subheading 8537.10.00, HTSUS, which provides for "[b]oards, panels (including numerical control panels), consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity . . . [f]or a voltage not exceeding 1,000 V." The corresponding rate of duty for articles of this subheading is 5.3% ad valorem.

The MUT 3 Circuit Board is classifiable under subheading - 5 -

8538.90.00, HTSUS, which provides for "[p]arts suitable for use solely or principally with the apparatus of heading 8535, 8536, or 8537 . . . [o]ther." The corresponding rate of duty for articles of this subheading is 5.3% ad valorem.

Accordingly, the protest should be denied. A copy of this decision should be attached to the Customs Form 19 and provided to the protestant as part of the notice of action on the protest.

Sincerely,

John Durant, Director

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