CLA-2 CO:R:C:G 083183 TLS

Mr. James Caffentzis
Fitch, King, and Caffentzis
116 John Street
New York, New York 10038

RE: Classification of Yankee cylinders from England

Dear Mr. Caffentzis:

Your letter of October 25, 1988 to our New York office requested a ruling, on behalf of your client, Beloit Corporation, on the appropriate tariff classification of the Yankee dryer cylinder under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). It has been referred to this office for reply.

FACTS:

Pictures of the Yankee cylinder were submitted along with a description of how it is used in the making of paper. The cylinder is a cast iron rotating cylinder with a very smooth surface and is 8-20 feet in diameter. It is used between the press and calendering sections of a papermaking machine to dry a continuous paper sheet. The paper sheet is pressed tightly against the hot outer shell of the Yankee cylinder by means of a pressure roller. The outer shell of the cylinder is heated by steam that is passed through the inner space of the cylinder. The heated surface of the cylinder then evaporates moisture from the paper sheet, which dries it. Different types of paper can be produced depending on the drying process used. If the paper is lifted off the cylinder before it is completely dry, then a crepe or tissue-like paper is produced. If the paper is allowed to remain on the cylinder until completely dry, then a glossy surface is produced on the paper, known as machine glazed (MG) paper.

ISSUE:

Under which HTS heading is the Yankee drying cylinder properly classifiable: 1) 8439, HTSUSA, covering machinery for making pulp of fibrous cellulosic material or making or finishing paper or paperboard (other than the machinery of heading 8419); parts thereof;

2) 8419, HTSUSA, covering machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process, involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; parts thereof.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI) govern the classification of articles under the HTSUSA. The section notes under each section and the chapter notes for each chapter provide additional guidance when two or more headings are relevant. Note 2(a) of section XVI states that parts which are goods included in any of the headings of chapter 84 are in all cases classified in their respective headings. Note 2 of chapter 84 states that a machine or appliance which answers to a description in one or more of the headings 8401 to 8424 and at the same time to a description in one or more of the headings 8425 to 8480 is to be classified under the appropriate heading of the former group and not the latter.

Heading 8419 covers machinery for, among other things, drying, and the parts thereto. The Yankee cylinder is used as a principal component in the drying process on a paper-making machine. It is manufactured with that purpose in mind. The cylinder is the part of the machine that actually dries the paper as the paper is passed over its outer shell.

Heading 8439 covers machinery for making or finishing paper, and parts thereof. The Yankee cylinder is used as a part on a machine for making paper and is an indispensable part of the paper-making process. In fact, different types of paper can be made depending on how the cylinder is used in the process. This particular cylinder is popular for producing a glazed finish on the paper. In each process, however, how the paper sheet is dried makes the difference in the finished product. Other factors, such as how the paper sheet is removed from the cylinder, when it is removed, and at what speed it is removed are just as important to the paper-making process. The cylinder's drying function is the essential characteristic of its use no matter what type of paper is produced. The fact that the cylinder assists in producing different varieties of paper is secondary to the fact that its drying function is what makes the cylinder an integral part of the paper-making machine. Referring back to note 2 of chapter 84, the Yankee cylinder is described in both heading 8419 and heading 8439. Heading 8419 belongs to the former group of headings (8401 to 8424) to which an article that falls within this provision should be classified. No discussion of which heading is more specific is needed here because chapter 84 note 2 directs us to heading 8419.

HOLDING:

The Yankee cylinder is properly classified under subheading 8419.32.50, covering dryers for wood, paper pulp, paper or paperboard.

Sincerely,

John Durant, Director