CLA-2-84:RR:NC:1:103 H81167

Mr. Ed Kwas
Expeditors Tradewin, LLC
1015 Third Avenue, 12th Floor
Seattle, WA 98104

RE: The tariff classification of the Xyron 500, Xyron 510, and parts thereof from China

Dear Mr. Kwas:

In your letter dated May 7, 2001 on behalf of Xyron Inc. you requested a tariff classification ruling.

With your inquiry you submitted descriptive literature and a sample of the Xyron 500 Create-a-Sticker and the Xyron 510 4 in 1 machines, as well as samples of certain components of these units. The Xyron 500 is intended for use by adults and children for craft, home, school and office projects. It applies adhesive to the back of labels, cards, photos, clip art and similar articles up to five inches in width, making them into stickers. It is manually operated and basically consists of a plastic housing with a feed and output tray, toothed tear bar, replaceable cartridge holding a roll of plastic film and a roll of paper coated with permanent or repositional adhesive, and geared rollers turned by a knob. To use the unit, a card, photo, or similar object is placed on the feed tray. The article is guided into the unit while the user turns the knob by hand, causing a length of the plastic film and adhesive coated paper to be pulled off their holders. The article is pressed between the paper and plastic film as it passes between a roller and a flat bar, thus transferring the adhesive from the paper to the back of the article. The balance of the adhesive sticks to the plastic film, which is then wound onto a separate roller. The paper, with the sticky article attached, is cut from the roll by pulling it manually against the tear bar. The article, now containing a uniform adhesive coating on its back, can then be peeled from the sheet of paper and stuck onto a desired surface. The Xyron 500 is 9.5 inches wide, 6 inches high, 8.6 inches deep, and weighs approximately 3 pounds.

The Xyron 510 is a sticker maker, laminator, label maker and magnet maker. It is similar to the Xyron 500, but features a crank handle, sliding cutting blade, and two geared rubber-covered rollers about 1 inch in diameter to bring the article and materials together. Depending on the rolls of material in the replaceable cartridge inserted into the unit, it can laminate one or both sides of a card or similar article up to 5 inches wide with plastic film, apply an adhesive to the back of the article to create a sticker, laminate the top and simultaneously apply adhesive to the back of the article, or laminate the top and glue the back of the article to a flexible magnetic material, thus creating a personalized refrigerator magnet. It is also made of plastic, and is 14.1 inches wide, 5.7 inches high, and 8.6 inches deep. It weighs approximately 5 pounds.

The first group of seven plastic parts for the Xyron 500 you submitted will be imported and then assembled with other components of domestic origin to make a replaceable cartridge. Three of the seven parts, a gear, roller holder, and side frame, are imported assembled together to form a single piece. The other four parts consist of the second side frame with film and paper spools, the back tear strip, and two flat panels which will provide rigidity to the assembled cartridge.

A second set of four parts which you submitted consists of twin plastic holders for the two rolls of material, as well as two flat plastic panels which, when assembled together with other U.S. made components (film/adhesive rolls, cores, and a washer), form a cartridge for the Xyron 510.

The third set of four plastic parts are identical to the second set in design and use. They are intended, after assembly into a cartridge unit, for use in a unit which is virtually the same as the Xyron 510 but is made by a competitor, Brother.

Finally, the fourth group of two plastic parts consists of a housing with an attached roller and a portion of the frame of a unit to which three plastic pieces (a gear wheel, a roller, and a sliding cutter blade) are attached. These components will also be used in a Xyron 510 type machine sold by Brother.

You further stated in your letter that the cutter blade for the Xyron 510 and equivalent Brother unit, the material on the shaft of the bottom roller for both these units, and a label attached to the inside top cover of the Xyron 510 are purchased in the United States and sent to China for assembly into the complete units.

You suggested that the Xyron 500 and Xyron 510 units may be classifiable in subheading 8420.10.90, Harmonized Tariff Schedule of the United States (HTS), which provides for calendering or other rolling machines, other than for metals or glass: other. You also suggested that the various parts described above should be classified in subheading 8420.99.90, HTS, a provision for parts of calendering or other rolling machines: other: other.

Calendering or other rolling machines of heading 8420, according to the Harmonized Commodity Description and Coding System Explanatory Notes, utilize the pressure generated by two or more parallel cylinders or rollers to perform certain functions, including rolling a raw material into a sheet, producing certain effects (such as smoothing, polishing, or embossing) on the surface of a sheet which passes between the rollers, applying dressings or surface coatings, or bonding fabrics. The Xyron 500 is used to create a sticker and is not a calendering or other rolling machine since it utilizes a roller and a plastic bar, rather than two or more rollers, to perform its function. Thus it cannot be classified in subheading 8420.10.90, HTS.

The Xyron 510 is used to create stickers, magnets, and laminated articles by means of two rollers which bring these materials together and generate minimal pressure. However, tariff terms do not necessarily include everything within their literal meaning (see United States v. Andrew Fisher Cycle Co., Inc., 57 CCPA 102, 107, C.A.D. 986 (1970), and related cases). In our opinion the Xyron 510 is not within the tariff meaning of the term calender or other rolling machine. The exemplars listed in the Explanatory Notes indicate that the calenders and rolling machines of heading 8420 feature a degree of physical robustness and pressure which the Xyron 510 lacks. Accordingly, it also is not classifiable in subheading 8420.10.90, HTS. The applicable subheading for the Xyron 500 and Xyron 510 will be 8479.89.9797, Harmonized Tariff Schedule of the United States (HTS), which provides for machines and mechanical appliances having individual functions, not specified or included elsewhere (in chapter 84): other machines and mechanical appliances: other: other: other: other. The rate of duty will be 2.5 percent ad valorem.

The applicable subheading for the various parts described above will be 8479.90.9595, HTS, which provides for parts of machines and mechanical appliances having individual functions, not specified or included elsewhere (in chapter 84): other: other. The rate of duty will be free.

Components of American origin which are sent to China to be assembled into these machines may be eligible for classification in subheading 9802.00.80, HTS, which provides for articles, except goods of heading 9802.00.90 and goods imported under provisions of subchapter XX, assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting. Articles so classified are subject to a duty upon the full value of the imported article, less the cost or value of such products of the United States.

In accordance with your request, the samples will be 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 Alan Horowitz at 212-637-7027.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division