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HQ 960753





October 9, 1998

CLA-2 RR:CR:GC 960753 HMC

CATEGORY: CLASSIFICATION

TARIFF NO.: 8464.20.50

Port Director of Customs
40 S. Gay Street
Baltimore, MD 21202

RE: Protest 1303-97-100277; Automated Finishing Line for Brake Blocks; Subheadings 8464.10.00 and 8479.89.95; Section XVI, Note 4; General Explanatory Note VII to Section XVI; Other Grinding or Polishing Machines; Functional Unit

Dear Port Director:

This is our decision on Protest 1303-97-100277, filed against your classification of an automated finishing line for brake blocks ("finishing line"). The entries under protest were liquidated on April 18, 1997, and this protest timely filed on June 5, 1997.

FACTS:

The merchandise under protest is an automated finishing line for brake blocks made of various components and machines, as follows:

1. Stack loading device for slabs
2. Gang slitting machine
3. Turnover unit
4. Thrufeed internal radius grinding machine 5. Internal radius cleaning station
6. Ultrasonic test station (made in the United States and not part of the protest)
7. External radius grinding machine
8. External radius cleaning station
9. Short unloading rails
10. Electrical control cabinet
11. Interlocked perimeter fence

The finishing line is designed to process 36" slabs down to individual pieces by sawing and grinding to specific dimensions. The finishing line cannot process 36" slabs and they are sawed by the gang slitting machine into five pieces each 7" wide. The slabs are made of synthetic or naturally occurring raw materials, including fiber glass, phenolic resins and natural graphite, that have been compounded, heated and pressed into the form of the slab.

The 7" blocks go through two grinding operations. The thrufeed internal grinding machine removes approximately 15 thousandth of an inch from the inside while the external radius grinding machine removes approximately 50 to 60 thousandth of an inch of material from the outside. The inside machine uses a sanding belt and the outside machine operates with a diamond grinding wheel. The finishing line uses conveyor mechanisms to transfer the slabs and the blocks to and from the various machines. After grinding the block is returned to the conveyor, which is then signaled to index the next brake block into the grinding position. Ground brake blocks are conveyed through the machine to the ultrasonic test station. A separate conveyor is used to transport blocks from the ultrasonic test machine to the outside radius grinding machine.

The merchandise was entered under a provision for sawing machines in subheading 8464.10.00 of the Harmonized Tariff Schedule of the United States (HTSUS). However, the entries were liquidated under subheading 8479, HTSUS, as other machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter.

The 1997 provisions under consideration are as follows:

8464 Machine tools for working stone, ceramics, concrete, asbestos-cement or like mineral materials or for cold working glass:
8464.10.00 Sawing machines...Free

8464.20 Grinding or polishing machines:
8464.20.50 Other...2.4%

8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof:
Other machines and mechanical appliances:
8479.89 Other:
Other:
8479.89.95 Other...3%

ISSUE:

Whether the finishing line is a functional unit classifiable as other grinding or polishing machines under subheading 8464.20.50, HTSUS, as sawing machines under subheading 8464.10.00, HTSUS or under subheading 8479.89.95, HTSUS, as other machines and mechanical appliances, not specified or included elsewhere in Chapter 84.

LAW AND ANALYSIS:

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, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6. GRI 6 states that the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.

Section XVI, Note 4, HTSUS, provides as follows:

Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function.

The Harmonized Commodity Description And Coding System Explanatory Notes (EN's) constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the EN's provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the System. Customs believes the EN's should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

General EN (VII) to Section XVI, HTSUS, at page 1227, states that

This Note applies when a machine (including a combination of machines) consists of separate components which are intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or, more frequently, Chapter 85. The whole then falls to be classified in the heading appropriate to that function, whether the various components (for convenience or other reasons) remain separate or are interconnected by piping (carrying air, compressed gas, oil, etc.), by devices used to transmit power, by electric cables or by other devices.

For the purposes of this Note, the expression "intended to contribute together to a clearly defined function" covers only machines and combinations of machines essential to the performance of the function specific to the functional unit as a whole, and thus excludes machines or appliances fulfilling auxiliary functions and which do not contribute to the function of the whole.

Protestant contends that the finishing line is a functional unit, classifiable under subheading 8464.10.00, HTSUS, as sawing machines. According to Protestant, the main function of the merchandise is to saw the 36" slabs. We find, in this instance, that the merchandise is a functional unit because it is a combination of machines that are intended to contribute together to a clearly defined function described by heading 8464, HTSUS. However, we disagree with Protestant's contention that the finishing line is classifiable under subheading 8464.10.00, HTSUS. We find instead that the grinding operation is the clearly defined function performed by the merchandise. The finishing line is a combination of machines used to produce brake blocks by sawing and grinding. Sawing is essential to produce the desired blocks from large slabs that the finishing line cannot process. However, the evidence provided shows that the grinding operation is the most critical process because of the tight tolerances required to properly install the brake block between the brake assembly and the hub. Therefore, the finishing line is classifiable by subheading 8464.20.50, HTSUS. Since the finishing line is classified in heading 8464, HTSUS, it is precluded from classification in heading 8479, HTSUS, which provides for machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter. See also EN 84.79, at page 1422. We note however, that the fence is not essential to the grinding operation of the break blocks and is classifiable separately.

HOLDING:

Under the authority of GRI 1, the automated finishing line for brake blocks is classifiable under subheading 8464.20.50, HTSUS, as "Machine tools for working stone, ceramics, concrete, asbestos-cement or like mineral materials or for cold working glass: Grinding or polishing machines: Other. The 1997 rate of duty is 2.4%.

This protest should be DENIED, except to the extent reclassification of the merchandise as indicated above results in a partial allowance (i.e. for the automated finishing line at 2.4% ad valorem instead of 3% ad valorem as liquidated, and if the fencing is dutiable at less than 3% ad valorem, at the appropriate rate). In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, you should mail this decision, together with the Customs Form 19, to the Protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.

Sixty days from the date of the decision, the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and to the public via the Diskette Subscription Service, the Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director
Commercial Rulings Division

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