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HQ 960755

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August 15, 2000

960755 PH/547613 KCC

CATEGORY: CLASSIFICATION VALUATION

TARIFF NO.: 7308.90.90; 8428.90.00; 8479.89.90; 8479.90.80; 8515.21.00; 8515.90.20; 8716.80.50

Port Director
U.S. Customs Service
2"d & Chestnut Streets
Philadelphia, PA 19106

RE: Protests 110995100680, 110195100740; Welding and material handling machines; functional units

Dear Sir

This is our decision on protests 110195100680 and 110195100740, against your classification under the Harmonized Tariff Schedule of the United States ("HTSUS") of certain welding and other machinery and the appraisement of value in the protested entries. In the preparation of this ruling, consideration was given to the submissions by counsel of May 14 and November 25, 1998, and December 8, 1999, and the arguments made in a meeting of protestant's counsel and representatives of this office on November 9, 1999. We regret the delay.

FACTS:

The merchandise is very completely described in packing lists that were referenced in the invoices and attached thereto. Because of confidentiality concerns, rather than describing each item, we are enclosing a spread sheet prepared by counsel for the protestant from these packing lists. We have reviewed the spread sheets for accuracy against the packing lists, and we have noted any errors. The LAW AND ANALYSIS section of this ruling addresses the merchandise, as described in the packing lists, in the order set out in the spread sheets.

The merchandise was entered in nine entries on two different dates in 1991, with classification of most articles as "functional units" in subheading 8428.90.00, HTSUS, as other lifting or handling machinery, or subheading 8515.31.00, HTSUS, as machines and apparatus for arc welding of metals. After proper extensions of liquidation and the issuance of notices of rate and value advances on Customs Form 29, the entries were liquidated on July 21, and August 11,1995, with classification of most articles as individual units (e.g., parts of welding machines, switches, control panels, etc.). Treatment as functional units was not allowed. The value advance was stated to be for "design and development costs, net, pkd". According to an attachment to the Customs Form 29, the value advance applied only to merchandise classified in subheading 8428.90 and 7308.90, HTSUS, described respectively as "driving unit for transfer machine, transfer machine, unloader unit, lifter, pallet, carrier, material handling jig" and "safety fence, stay & pole, cable rack, etc."

Counsel for the importer filed these protests on October 19 and November 13, 1995. In the protests and supplemental submissions, the protestant argues that all of the merchandise constitutes welding machinery or apparatus classifiable in subheading 8515.21, HTSUS. In protest 110195100704, the protestant also argues that certain of the machines (including articles that contribute to the activities thereof) should be classified as material handling equipment in subheading 8428.39 or 8428.90, HTSUS. The basis for both claims is stated to be Note 4, Section XVI, HTSUS, in that "all items are dedicated to and ultimately further the function of welding and constitute a group or collection of devices, materials, instruments, or appliances to be used for the particular function of welding."

In its supplemental submissions, the protestant more fully describes the imported merchandise, emphasizing the "turnkey" nature of the imported articles. That is, each entry is stated to consist of a welding line or lines used to manufacture automobile body panels, with the lines being furnished on a kit basis, with the entire line being sold as one integrated unit. Citing Customs rulings and U.S. v. MannesmannMeer, Inc., 54 CCPA 24, C.A.D. 897 (1966), and other authorities, the protestant continues to argue that welding lines in the entries should be treated as functional units and classified in subheading 8515.21, HTSUS.

The protestant refers to Customs position that there can be no incomplete functional units, and concedes that some of the articles of lines previously used by the manufacturer continue to be used alongside the newly imported articles (i.e., "certain items from the first generation of vehicle production were also used in conjunction with the second generation welding lines"). Also in regard to the issue
of whether there can be an incomplete functional unit, the "automobile body assembly line", a socalled "macro" approach may be used. That is "all of the elements of the imported machinery, including safety fences, cable racks and similar items are necessary to the automated functioning of the lines [so] it is logical to combine all entries as a functional unit."

Counsel also supplements the protests with explanations of some of the descriptions in the packing lists. That is, "buffer" refers to "conveyors or material handling lines which are designed to store and delay the passing down of parts that were previously produced [and] are essentially holding patterns for parts and, as such, are really material handling equipment." Articles listed as "control panels" in the packing list are actually controllers for the robots, which include logic and programmable functions similar to the controllers referred to in another ruling, Headquarters Ruling Letter ("HRL") 962105 dated April 22, 1999. "Optical fiber cable" refers to such cable cut to size and terminated which is used "to connect the controllers to the robots, welding or material handling jigs." The electrical cables listed in the packing lists are used to provide the electricity to the articles and "valve units" "control the flow of air and water to the welding gun for cooling and related purposes." "Gauges" "are really checking fixtures (like patterns) which check the size and shape of parts produced" stated to be classifiable in subheading 8486.20.90, HTSUS. "Safety fences are argued to be part of the functional units for which they are used, under the socalled "macro" approach, in that the welding cannot be accomplished safely or in keeping with Government agency regulations without them, and would be practically impossible in any case. Control panels that "control more than one robot/welding jig/material handling jig" are argued to be part of a "macro" functional unit, although they are distinguished in the spread sheets from control panels that control only one function.

Insofar as the value issue is concerned, the protestant submits that "a portion of the imported merchandise was subject to an improper and inapplicable valuation assessment." The protestant notes that the Customs Forms 29 stated that the values were advanced because of payment of research and development costs and states that it understands that "the averred payments are wholly unrelated to the specific merchandise comprising the subject entries." The Customs Forms 29 stated that the entries at issue were value advanced due to payments made for "research and development costs." The issue of whether research and development costs are part of the dutiable value of these imported components was the subject of HRL 544694 dated February 14, 1995. HRL 544694 concerned the protestant at issue here. Additionally, in HRL 544694 and this case, protestant was represented by the same Counsel. Therefore, the value issue has been fully reviewed and analyzed in HRL 544694. The value advanced to the entries at issue was made in conformity with the holding in HRL 544694 Which states that °[t]he payments in respect of the design and development costs at issue should be allocated to the imported components..." Therefore, the protests do not meet the criteria for an application for further review pursuant to § 174.24(c) and § 174.25(b)(2)(i), Customs Regulations (19 CFR § 174.24(c) and

ISSUES:

Whether the merchandise in the protested entries make up a functional unit, classifiable as electric welding machines and apparatus, in heading 8515, HTSUS.

If the merchandise in the protested entries does not make up one functional unit, whether articles within the protested entries are classifiable as functional units.

Whether the merchandise in the protested entries that may not be classified as functional units was properly classified.

LAW AND ANALYSIS:

Initially, we note that the protest was timely filed (i.e., within 90 days after but not before the notice of liquidation; see 19 U.S.C. 1514(c)(3)(A)) and the matter protested is protestable (see 19 U.S.C. 1514(a)(1), (2), and (5)). Protest 110195100704, although filed on the 93`d day after liquidation, was filed on the next working day after the holiday on which the 90th day fell (see 19 CFR 101.6(a); Customs Directive 099 3550065 dated August 4, 1993 (Revised Protest Directive), pages 67)).

CLASSIFICATION

Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (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, taken in order.

The Harmonized Commodity Description and Coding System Explanatory Notes ("Ens") constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the ENs 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 ENs should always be consulted. See T.D. 8980, published in the Federal Register August 23, 1989 (54 FR 35127, 35128).

The 1991 HTSUS headings under consideration are as follows:

7308 Structures and parts of structures (for example, bridges and bridge sections, lock gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns) of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel
8428 Other lifting, handling, loading or unloading machinery (for example, elevators, escalators, conveyors, teleferics)

8471 Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included

8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof

8515 Electric (including electrically heated gas), laser or other light or photon beam, ultrasonic, electron beam, magnetic pulse or plasma arc soldering, brazing or welding machines and apparatus, whether or not capable of cutting; electric machines and apparatus for hot spraying of metals or sintered metal carbides; parts thereof

Printed circuits

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, including those incorporating instruments or apparatus of chapter 90, other

8540 Thermionic, cold cathode or photocathode tubes (for example, vacuum or vapor or gas filled tubes, mercury arc rectifying tubes, cathoderay tubes, television camera tubes); parts thereof

8544 Insulated (including enameled or anodized) wire, cable (including coaxial cable), whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors

8716 Trailers and semitrailers; other vehicles, not mechanically propelled; and pats thereof

9017 Drawing, markingout or mathematical calculating instruments (for example, drafting machines, pantographs, protractors, drawing sets, slide rules, disc calculators); instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, calipers), not specified or included elsewhere in this chapter; parts and accessories thereof

9029 Revolution counters, production counters, taximeters, odometers, pedometers and the like; speedometers and tachometers, other than those of heading 9015; stroboscopes; parts and accessories thereof

Note 4, Section XVI, HTSUS, provides that:

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.

We will first address the protestant's socalled "macro" approach to the functional unit issue (i.e., treating all of the elements of the imported machinery as one functional unit intended to function as an "'automated"' automobile body assembly line"). One difficulty with this approach is that not all of the imported machinery was imported together. In applying Note 4, Section XVI, HTSUS, Customs has repeatedly noted that there are no Legal Notes or ENs that provide for incomplete functional units or parts of functional units. The fact that several machines, if imported together, would be classified under a single heading as a functional unit does not mean that the same would hold true if they were imported separately. (See, e.g., HRL 087077 dated March 27, 1991; HRL 950218 dated April 17, 1992; HRL 957326 dated July 17, 1995; HRL 961003 dated June 10, 1998; HRL 962105 dated April 22, 1999; and HRL 963027 dated September 9, 1999.) Further, in regard to this difficulty with this approach, as noted above, the protestant concedes that not all of the articles of the "'automated' automobile body assembly line" were imported in the protested entries. Some of the articles were previously used by the manufacturer and continued to be used alongside the newly imported articles.

A second difficulty with the socalled "macro" approach is that Note 4, Section XVI, HTSUS, requires .the components purported to make up the functional unit to "contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85". An assembly line (whether or not automated and whether or not for automobile bodies) is not "a clearly defined function covered by one of the headings in chapter 84 or chapter 85.n

We believe that the proper approach in a case such as this is represented by that taken in HRL 962105. That is, "robot systems, each consisting of a robot, with endofarm tooling for a specific service application", and a "controller with software containing instructions compatible with that service application constitute a functional unit under Section XVI, Note 4, HTSUS, the whole, minus the software, being classified in the heading appropriate to that function." "[R]obot systems, each consisting of a robot without endofarm tooling, but with a "controller and software compatible with a specific service application do not constitute a functional unit under section XVI,_ Note 4, HTSUS."

The General EN for Section XVI, (VII) Functional Units, states that:

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.

The examples of functional units within the meaning of Note 4 include "pipes or hoses needed to connect" components of a functional unit (examples (1) and (4)). Similarly, in HRL 955566 dated April 20, 1994, and HRL 087694 dated November 14, 1990, respectively, Customs held cables for connecting components of a functional unit and a control panel for a functional unit to be classifiable with the functional units (i.e., "essential to the performance of the function", see above).

On the basis of the foregoing, optical fiber cables, electrical cables, mat switches, switch units, and ground reactors listed in the packing lists as being for components that together make up functional units of Note 4, section XVI, HTSUS, are classifiable with those functional units. Similarly, the "valve units", stated to control the flow of air and water to the welding gun for cooling and related purposes and "welding timer[s]n and "position adjuster[s]" therefor are also classified with the functional units. As in HRL 962105, controllers for complete functional units (in the packing lists described as "control panel for [particular functional unit involved]") are classifiable with the functional unit, minus the software which is separately classified in heading 8524, pursuant to Note 6, Chapter 85, HTSUS. However, we believe that the safety fences and the "gauges" fulfill auxiliary functions, and are not classifiable with the components making up functional units. That is, although the safety fences may be very important and may, as the protestant states, be required by a Government agency, they do not actually contribute to the "function specific to the functional unit", they contribute to the safety of the operator, regardless of what the function is. Similarly, the "gauges" check the articles after the "function specific to the functional unit" is performed; they do not contribute to the performance of the function.

In regard to the "material handling unit[s]", the liquidated classification of these articles was as other lifting and handling equipment of heading 8428, HTSUS, and the protestant does not contest this classification. EN 84.79, (I) Machinery of General Use (3), lists as an example of the articles included in heading 8479, HTSUS, "mechanical distributors for continuous presentation of work pieces in the same alignment ready for the working operation, not specialized for any particular industry." Customs has ruled that welding is a process and does not denote a "particular industry" for purposes of this provision (see HRL 957460, dated April 26, 1995). Therefore, work piece positioners not related to conveyors have been classified in heading 8479 (HRL 957460 and HRL 962105). Similarly, in this case, we conclude that the "material handling unit[s]" are "more akin by function to the cited description in [EN] 84.79" (see HRL 962105) than to the function of the conveyors of heading 8428, HTSUS. Customs has consistently held that functional units cannot be classified in heading 8479 because that heading does not describe any machine by a clearly defined function (see, e.g., HRL 958629 dated February 21, 1996, and HRL 962105). Thus, these articles and the components stated in the packing lists to be for them may not be classified together as functional units.
defined function (see, e.g., HRL 958629 dated February 21, 1996, and HRL 962105). Thus, these articles and the components stated in the packing lists to be for them may not be classified together as functional units.

However, treatment of the "buffers", described as "conveyors or material handling lines which are designed to store and delay the passing down of parts that were previously produced" (see above), is distinguished from that of the "material handling unit[s]". They are "more akin by function" to the function of conveyors of heading 8428 (see HRL 962105). They are classifiable in that heading. The "transfer machines", "loaders", and "unloading jigs" also, by their designation as such, appear to be "more akin by function" to the function of conveyors of heading 8428.

We note that some of the "transfer machines", "loaders", and "unloading jigs", as well as other machines (e.g., spot welding gun) may not have a controller associated with them. To the extent that this is so, other articles (e.g., mat switches) associated with them may not be components of functional units (because they would be components of incomplete functional units). In this regard, we note that it is possible that such combinations could be considered incomplete loading or unloading machines of heading 8428, HTSUS, pursuant to GRI 2(a), but that there is insufficient evidence for such a determination.

Classification of the merchandise described in the packing lists, in the order of the spread sheets provided by the protestant, is specifically addressed ' below:

The mat switches, control panels, switch units, position adjusters for welding timers, welding timers, valve units, position adjusters for control panels, electric cables (including junction boxes therefor, when applicable), optical fiber cables, and ground reactors make up functional units classifiable in subheading 8515.21.00, HTSUS, as fully or partly automatic machines and apparatus for arc welding of metals.

The material handling jigs are classifiable in subheading 8479.89.90, HTSUS, as other machines and mechanical appliances having individual functions not specified or included elsewhere in the chapter (but because these articles were liquidated with classification in heading 8428, HTSUS, with a lesser rate of duty, the liquidated rate of duty may not be changed (see 19 U.S.C. 1515(a)).

The position adjusters for material handling jigs are classifiable in subheading 8479.90.80, HTSUS, as parts of articles of subheading 8479.89.90, HTSUS (but because these articles were liquidated with classification in heading 8428, HTSUS, with a lesser rate of duty, the liquidated rate of duty may not be changed (see 19 U.S.C. 1515(a)).

The liquidated classification of the gauges for material handling jig (subheading 9017.30.80, HTSUS, as other gauges) is unchanged, as there is insufficient information to determine whether the gauges are parts of articles of heading 8479, HTSUS, and the subheading proposed by the protestant (in heading 8486, HTSUS) does not exist.

Articles listed under the preceding entry are classified accordingly; other articles are classified as follows:

There is insufficient information to determine the classification of the hanging tools, claimed to be for material handling (note also that material handling jigs and parts thereof are classifiable in heading 8479, HTSUS). Therefore, the liquidated classification in subheading 7308.90.90, HTSUS, is unchanged.

In the absence of information to the contrary, the rail & rail bed, stated to be a welding robot base is classifiable in subheading 8515.90.20, HTSUS, as parts of welding machines and apparatus.

The classification of mat switches for loading or unloading, or transfer machines, when there is no controller associated with the latter, is unchanged (because of the incomplete functional unit doctrine (see above); see also, Note 2, Section XVI, HTSUS).

The classifications of the trolley, mat switch, and cable for the portable spot welding gun are unchanged (because of the incomplete functional unit doctrine (see above); see also, Note 2, Section XVI, HTSUS).

There is insufficient information to determine the classification of the car model monitor models, monitor panels for car model indicate, and product counter displays. However, because the liquidated classification was in a free provision, even if the correct classification is in subheading 8471.93.60, 8537.10.00, or 9029.10.80, HTSUS, as indicated by the protestant, the liquidated rate of duty may not be changed (see 19 U.S.C. 1515(a))).

Buffer conveyers (or "buffer[s]") with associated mat switches, control panels (or controllers), switch units, and chains are classifiable as functional units, as other lifting, handling, loading, or unloading machinery, in subheading 8428.90.00, HTSUS.

There is insufficient information to determine the classification of the line monitors and broadcasting units. Therefore, the liquidated classification is unchanged.

The welding transformers and transformer guns are classified in heading 8515.21.00, HTSUS (unless there is evidence they are associated with another kind of welding apparatus) (see EN 85.15 (p. 1467)).

In the absence of evidence to the contrary, the dolly for underbody (item # 53) is classified as liquidated, in subheading 8716.80.50, HTSUS, as other vehicles not mechanically propelled (see EN 87.16 (B) Hand propelled vehicles).

Articles listed under the preceding entries are classified accordingly; other articles are classified as follows:

There is insufficient information to determine the classification of the limit switch unit. However, because the duty rate for the liquidated classification is the same as that for the classification indicated by the protestant, subheading 8534.29.00, HTSUS, the liquidated rate of duty may not be changed.

Item # 24E1 is described as a control panel for two welders, but the article with which it is associated in the spread sheets already has a control panel. In the absence of other information, the liquidated classification of this article is unchanged.

Articles listed under the preceding entries are classified accordingly; other articles are classified as follows:

The liquidated classification of the light screen (item # 41) is unchanged, as
there is insufficient information to determine the correct classification and, in any event, the classification proposed by the protestant (subheading 8540.99.00, HTSUS) has a higher rate of duty than the liquidated classification (see 19 U.S.C. 1515(a)).

The liquidated classification for the parts checking unit (item 44) is unchanged, as there is insufficient information to determine the correct classification and the subheading proposed by the protestant (in heading 8486, HTSUS) does not exist.

Articles listed under the preceding entries are classified accordingly; other articles are classified as follows:

The liquidated classifications of the light screen & stop switch unit (item # 112) and the light screen unit (item # 113) are unchanged, as there is insufficient information to determine the correct classification of these articles.

The liquidated classification of the harnesses for spot welding robots (items #134 #138) is unchanged, as there is insufficient information to determine that these articles are apparatus or parts of heading 8515, HTSUS, rather than wire or cable of heading 8544, HTSUS, as proposed by the protestant, and they are not apparently associated with any complete functional unit (see above; compare to item # 1401).

Articles listed under the preceding entries are classified accordingly; other articles are classified as follows:

In regard to the control panels for wheel house assembly lines (items # 301 and 302), the liquidated classification is unchanged, for the reasons given above in response to the socalled "macro" approach proposed by the protestant in regard functional units (see also counsel's December 8, 1999, letter, pages 67).

Articles listed under the preceding entries are classified accordingly; other
articles are classified as follows:

The liquidated classification of the frames of checking gauge units (items # 182 and 184) is unchanged, as there is insufficient information to determine the correct classification of these items and the subheading proposed by the protestant (in heading 8486, HTSUS) does not exist.

The liquidated classification for the switch units for hinge assembly & punching equipment (items # 25 and 26) is unchanged, as there is insufficient information to determine whether the switches are parts of articles of heading 8515, HTSUS, as proposed by the protestant.

Articles listed under the preceding entries are classified accordingly; other articles are classified as follows:

The liquidated classification of the broadcasting "AMPH RHILH" is unchanged, as there is insufficient information to determine whether the protestant's proposed classification (subheading 8471.93.60, HTSUS) is correct.

The liquidated classification of the car model displays (items # 384 and 385, and recurring throughout this entry) is unchanged (the liquidated classification was in a free provision; therefore, even if the protestant's proposed classification (subheading 8537.10.00, HTSUS, with duty of 5.3%) is correct, the liquidated rate of duty may not be changed (19 U.S.C. 1515(a))).

Articles listed under the preceding entries are classified accordingly; other articles are classified as follows:

The liquidated classification of the broadcasting unit (item # 116) is unchanged. As stated above, there is insufficient information to determine the correct classification of this article, furthermore, the liquidated classification is in a provision with a lower rate of duty than that in the protestant's proposed classification (subheading 8471.93.60, HTSUS, with duty of 3.7%); therefore, the liquidated rate of duty may not be changed (19 U. S. C. 1515(a)).

Provided that the "sealer robot" (item # 42) is welding machinery or apparatus (as indicated by the liquidated classification), that article and the controller and value unit associated therewith (items # 43 and 462) make up a functional unit classifiable in subheading 8515.21.00, HTSUS, as fully or partly automatic machines and apparatus for arc welding of metals.

We note that the entries at issue were value advanced due to payments made for "research and development costs." See, Customs Forms 29. The issue of whether research and development costs are part of the dutiable value of these imported components was the subject of HRL 544694 dated February 14, 1995. HRL 544694 concerned the protestant at issue here. Additionally, in HRL 544694 and this case, protestant was represented by the same Counsel. Therefore, the value issue has been fully reviewed and analyzed in HRL 544694. The value advanced to the entries at issue was made in conformity with the holding in HRL 544694 which states that "[t]he payments in respect of the design and development costs at issue should be allocated to the imported components..." Thus, the value advance was proper pursuant to HRL 544694.

HOLDING:

The merchandise in the protested entries does not make up one socalled "macro" functional unit.

Welding robots or jigs and the controllers therefor (often identified as "control panels" in the packing lists), as well as other articles essential to the performance of the function of welding (e.g., mat switches), but not including machines or appliances fulfilling auxiliary functions (e.g., safety fences), make up functional units classifiable in subheading 8515.21.00, HTSUS, as fully or partly automatic machines and apparatus, provided that the components necessary to make up complete function units may be associated with each other in the packing lists and spread sheet.

"Buffers", transfer machines, loaders, and unloading jigs and the controllers therefor, as well as other articles essential to the performance of the function of lifting, handling, loading, or unloading, but not including machines or appliances fulfilling auxiliary functions, make up functional units classifiable in subheading 8428.90.00, HTSUS, as other lifting, handling, loading or unloading machinery.

Material handling jigs and the controllers therefor do not make up functional units (see EN 84.79); the material handling jigs are classifiable in subheading 8479.89.90, HTSUS, as other machines and mechanical appliances having individual functions not specified or included elsewhere in the chapter; the articles associated with the material handling jigs are individually classifiable as indicated in the LAW AND ANALYSIS section of this ruling.

The remaining articles (e.g., safety fences, mat switches for material handling machines or which are associated with an incomplete functional unit) are classifiable as indicated in the LAW AND ANALYSIS section of this ruling.

The protest is ALLOWED in PART and DENIED in PART; consistent with this ruling (liquidated classification of articles properly classifiable in another provision will result in reliquidation only if the proper classification is at a lower rate of duty than the liquidated classification; if the proper classification is at the same or a higher rate of duty than the liquidated classification, the liquidated rate of duty may not be changed (19 U.S.C. 1515(a))).

Pursuant to HRL 544694, the value advance for research and development cost is proper. With regard to this issue, the protest is denied.

In accordance with Section 3A(11)(b) of Customs Directive 099 3550065, dated August 4, 1993, Subject: Revised Protest Directive, this decision should be mailed, with the Customs Form 19, by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to makethe decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Freedom of Information Act, and other public access channels.

Sincerely,
John Durant, Director
Commercial Rulings Division


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See also:

• Tariff No.: 8428.90.00 - Machinery for lifting, handling, loading or unloading, nesi
• Tariff No.: 8515.21.00 - Electric machines and apparatus for resistance welding of metal, fully or partly automatic
• Tariff No.: 8515.31.00 - Electric machines and apparatus for arc (including plasma arc) welding of metals, fully or partly automatic
• Tariff No.: 8515.90.20 - Parts of electric welding machines and apparatus
• Tariff No.: 8716.80.50 - Vehicles, not mechanically propelled, nesoi
• Tariff No.: 9017.30.80 - Gauges for measuring length, for use in the hand
• Tariff No.: 9029.10.80 - Revolution counters, production counters, odometers, pedometers and the like, other than taximeters