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NY N021186




January 24, 2008

CLA-2-84:OT:RR:NC:1:104

CATEGORY: CLASSIFICATION

TARIFF NO.: 8479.40.0000; 8479.81.0000; 8479.89.9897; 8483.40.5050

Mr. Daniel Cannistra
PricewaterhouseCoopers LLP
Suite 800W
1301 K St., N.W.
Washington, DC 20005-3333

RE: The tariff classification of a planetary stranding machine line from Austria and China

Dear Mr. Cannistra:

In your letter dated December 11, 2007 on behalf of Metrod (Malaysia) Berhad you requested a tariff classification ruling.

The “Planetary Stranding Machine” is used to produce continuously transposed conductors (“CTC”), a special cable used in the manufacture of power transformers. The processing machine consists of several sections. Spools of wire strip are mounted on the spool carriers of the stranding carriage. Material is then fed to the transposing head via a planetary head. Following the transposing, the transposed bundle can be covered with special insulation paper or netting tape. The finished bundle is then wound in layers on a winding unit and sold in coils.

As described in the submitted “Scope of Supply”, the merchandise in question is as follows: Item A. Stranding Carriage KVD 1+32/50R and KVD 1+64/50R Item B. Transposing Head
Item C. Change Gear 29 (61) Steps
Item D. Tape Lapping Head BW 8/50 AC
Item E. Belt Type Caterpillar Haul-Off HBA 2/5/150 Item F. Traversing Take-Up Stand ART 22
Item G. Electrical Equipment consisting of – 1 ea. AC drive, P=70kW (80 kW for KVD 1+64) 3 ea. AC drive, P=22kW
1 ea. Control box
1 ea. Control panel
1 set Terminal boxes
Electrical equipment is further described as consisting of 1 AC drive for the entire line, individual AC drives for taping heads, take-up drum- and traverse drive, control box with PLC, main operator desk and local control station for stranding carriage designed in accordance with the relevant standards.

In your letters of October 9, 2007 and December 11, 2007, you propose that the goods be classified as a functional unit under subheading 8479.40.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for machines and mechanical appliances having individual functions, not specified or included elsewhere (in Chapter 84): rope or cable-making machines. However, you indicate that the merchandise will be imported in three partial shipments: Items A, E, F First Shipment (China)
Items D, G Second Shipment (Austria)
Items B, C Third Shipment (Austria)

The United States Court of International Trade and its predecessor, the United States Customs Court, have ruled that imported merchandise is classified according to its condition at the time of importation (see KMW Johnson, Inc., Plaintiff v. United States, Defendant, Slip. Op. 89-178, and various decisions cited therein). The issue of merchandise imported in multiple shipments was addressed in HQ ruling letter 562056 dated January 7, 2002 which states, in part: Current law requires all merchandise arriving on one vessel or vehicle and consigned to one consignee to be included in one entry. See 19 C.F.R. § 141.51. This means that an unassembled article whose components are shipped separately will be classified as components, not as the assembled article.

In addition, HQ 958807 dated April 30, 1996 states, in part, It is well settled that merchandise must be classified and assessed with duty in its condition as imported. Components of a machine that arrive within the customs territory on different days cannot be aggregated for classification and appraisement purposes under a single HTS provision. See United States v. Baldt Anchor, Chain & Forge Division of Boston Metals Co., 59 CCPA 122, C.A.D. 1051, 429 F. 2d 1403 (1972), Franklin Industries, Inc. v. United States, 1 C.I.T 349 (1981), HQ 085252, dated September 29, 1989, and HQ 954820, dated December 13, 1993.

Customs has since undertaken a thorough review of the matter and has decided to revise its treatment of such cases. To this end, new regulations have been promulgated on the subject of “single entry for unassembled or disassembled entities imported on multiple conveyances” due to (1) shipments divided at the initiative of the carrier (“split shipments”) [19 U.S.C. 1484(j)(2)] or (2) the size or nature of the merchandise which necessitates shipment in an unassembled or disassembled condition on more than one conveyance [19 U.S.C. 1484(j)(1)]. The new regulations now provide for the treatment of certain multiple shipments of merchandise as a single entry. It is possible the components shipped in the manner described in your letter may be eligible for such treatment under 19 U.S.C. 1484(j)(1).

Because the requirements for this new regulation are complex, you are advised to consult 19 CFR §141.58 which describes, in detail, those requirements. Also see the Federal Register, Vol. 71, No. 106, Friday, June 2, 2006, pages 31921 - 31927. In the event that actual circumstances of shipment do not meet the new requirements set forth in 19 CFR §141.58, we are without authority to classify the various components in the individual shipments as if forming a single functional unit. Instead, the goods in each individual shipment will be subject to classification in accordance with their condition as imported. Should that be the case, we are providing classifications for the articles described above as Items A through G, inclusive.

The applicable subheading for the Stranding Carriages KVD 1+32/50R and KVD 1+64/50R (Item A) and the Transposing Head (Item B) will be 8479.40.0000, HTSUS, which provides for Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Rope or cable-making machines. The rate of duty will be free.

The applicable subheading for the Change Gear 29 (61) Steps (Item C) will be 8483.40.5050, HTSUS, which provides for gear boxes and other speed changers. The rate of duty will be 2.5 percent ad valorem.

The applicable subheading for the Tape Lapping Head BW 8/50 AC (Item D) will be 8479.81.0000, HTSUS, which provides for Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: For treating metal, including electric wire coil-winders. The rate of duty will be free.

The applicable subheading for the Belt Type Caterpillar Haul-Off HBA 2/5/150 (Item E) and the Traversing Take-Up Stand ART 22 (Item F) will be 8479.89.9897, HTSUS, which provides for Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Other: Other: Other. The rate of duty will be 2.5 percent ad valorem.

Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.

Your inquiry does not provide enough information for us to give you a classification ruling on the Electrical Equipment (Item G). Your request for a classification ruling on these items imported separately should include the following:

Photographs, drawings or other pictorial representations of the items(s) with all components labeled.

Descriptive literature or a detailed explanation on the use of the item(s).

Descriptive literature or a detailed explanation on how the item(s) operate/function.

When this information is available, you may wish to consider resubmission of your request. We are returning any related samples, exhibits, etc. If you decide to resubmit your request, please include all of the material that we have returned to you.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Patricia O’Donnell at 646-733-3011.

Sincerely,

Robert B. Swierupski
Director,

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