CLA-2 OT:RR:CTF:TCM H242601 TNA
Marc Romano, LCB
Customs Team Leader, US
Husky Injection Molding Systems, Inc.
55 Amherst Villa Road
Buffalo, NY 14225
RE: Reconsideration of HQ H025103; Classification of Clamp Cylinder Assembly and Injection Cylinder Assembly used in Plastic Injection Molding Machines
Dear Mr. Romano:
This letter is in reference to your request for reconsideration of Headquarters Ruling Letter (“HQ”) H025103, issued to you on February 6, 2009, concerning the tariff classification of parts of plastic injection molding machines. In that ruling, U.S. Customs and Border Protection (“CBP”) classified the subject merchandise under subheading 8477.90.25, Harmonized Tariff Schedule of the United States (“HTSUS”), as “Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof: Parts: Base, bed, platen, clamp cylinder, ram, and injection castings, weldments and fabrications.”
We have reviewed HQ H025103 and found it to be correct. For the reasons set forth below, we hereby affirm HQ H025103.
FACTS:
The subject merchandise consists of various components of plastic injection molding machines. The first is the clamp cylinder assembly. Its function is to maintain force on the platens, which keep the mold in place during the molding cycle. It is a double acting, rodless type that converts hydraulic fluid pressure into linear mechanical force during the molding process. Pressure is maintained through the seals, and it is the pressure that supports and guides the clamp piston using wear rings.
The second component at issue is the clamp cylinder casting. As imported, this item is built to certain specifications and tolerances but is not fully finished. After importation, it is further processed by milling, cleaning and deburring, and the machined surface of the casting is bored. After the clamp cylinder casting is completed, it is integrated into the clamp cylinder assembly. It has no practical use other than for completion into the finished injection molding machine parts.
The third component at issue is the clamp piston. It is also a component of the clamp cylinder assembly. High pressure fluid supplied by the clamp cylinder places a force on the piston which in turn translates the force to the moving and stationary platens to provide sufficient compressive force on the mold to prevent leakage or seepage of molten resin from the mold during the molding injection cycle. The piston is engineered to rotate about its center axis to engage or disengage a modular clamp rod through the hollow center of the piston when disengaged, allowing the mold to open and close. Upon engagement of the teeth, the full clamp force is transmitted through piston to the clamp rod and onward to the mold.
The fourth component at issue is the injection cylinder assembly. This assembly transfers molten resin from the extruder of the plastic injection molding machine into the mold at controlled pressures and volumetric rates. It converts hydraulic pressure into linear mechanical force and is designed to allow the piston to have controlled rotary motion. The injection cylinder assembly is integrated with an axially driven spline shaft and injection piston. An injection cylinder is a component of this assembly; it allows for pressure control during the recovery of resin and allows for decompression of molten resin to relieve the pressure within the hot runner.
The last component at issue here is the injection cylinder casting. As imported, the injection cylinder casting is built to certain specifications and tolerances but is not fully finished. After importation, it is further processed by milling, cleaning and deburring, and the machined surface of the casting is bored. After the injection cylinder casting is completed, it is integrated into the injection cylinder assembly.
In HQ H025103, CBP classified the subject merchandise under subheading 8477.90.25, HTSUS, as “Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof: Parts: Base, bed, platen, clamp cylinder, ram, and injection castings, weldments and fabrications.” HQ H025103 was a reconsideration of NY M83570, dated June 13, 2006, which was also issued to Husky. There as well, CBP classified the subject merchandise in 8477.90.25, HTSUS. In HQ H025103, CBP considered classification in heading 8412, HTSUS, for which Husky now advocates, but found that there was not enough information to classify the subject merchandise there. In requesting reconsideration of HQ H025103, Husky has submitted new information regarding the subject merchandise that CBP said it was lacking in HQ H025103.
ISSUE:
Whether the subject products are classified as motors and engines or parts thereof in heading 8412, HTSUS, or parts of plastic injection molding machines of heading 8477, HTSUS?
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI may then be applied. GRI 6 requires that the classification of goods in the subheadings of headings shall be determined according to the terms of those subheadings, any related subheading notes and, mutatis mutandis, to GRIs 1 through 5.
The HTSUS provisions under consideration are as follows:
8412 Other engines and motors, and parts thereof:
8477 Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof:
Note 2 to Section XVI, HTSUS, to which heading 8412 and 8477, HTSUS, belong, provides, in pertinent part, the following:
Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:
(a) Parts which are goods included in any of the headings of chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;
(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517…
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The General EN to Chapter 84, HTSUS, states, in pertinent part, the following:
(B) GENERAL ARRANGMENT OF THE CHAPTER
…
(2) headings 84.02 to 84.24 cover the other machines and apparatus which are classified mainly be reference to their function, and regardless of the field of industry in which they are used.
(3) Headings 84.25 to 84.78 cover machines and apparatus which, with certain exceptions, are classified there by reference to the field of industry in which they are used, regardless of their function.
The EN to heading 8412, HTSUS, states, in pertinent part, the following:
This heading covers engines and motors not included in the preceding headings (headings 84.06 to 84.08, 84.10 or 84.11) or in heading 85.01 or 85.02. It therefore covers non-electric engines and motors other than steam turbines and other vapour turbines, spark-ignition and compression-ignition internal combustion piston engines, hydraulic turbines, water wheels, turbo-jets, turbo-propellers or other gas turbines.
The heading includes reaction engines (other than turbo-jets), pneumatic power engines and motors, wind engines (windmills), spring-operated or weight-operated motors, etc., certain hydraulic power engines and motors, and certain steam or other vapour power units….
(B) HYDRAULIC POWER ENGINES AND MOTORS
This group includes:
(3) Hydraulic cylinders consisting, for example, of a brass or steel barrel and a piston operated by oil (or other liquid) under pressure applied on one side (single-acting) or on both sides (double-acting) of the piston, the energy of the liquid under pressure being converted into a linear motion. These cylinders are used on machine-tools, construction machinery, steering mechanisms, etc.
The EN to heading 8477, HTSUS, states, in pertinent part, the following:
The heading covers machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this Chapter.
The heading includes:
(1) Moulding machines for tyres or other articles of rubber or plastics excluding moulds as such (headings 68.15, 69.03 and 84.80 in particular)…
PARTS
Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), the heading also covers parts of the machinery of this heading.
In their condition as imported, the clamp cylinder assembly and the injection cylinder assembly are complete products that need no further processing. As such, they are classified under GRI 1. By contrast, the clamp cylinder casting, clamp piston, and injection cylinder casting are imported unfinished. GRI 2 states, in pertinent part, the following:
(a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
As a result, the subject clamp cylinder casting, clamp piston, and injection cylinder casting will be classified according to GRI 2(a).
In requesting reconsideration of HQ H025103, Husky argues for classification of the subject products in heading 8412, HTSUS, as “other engines and motors.” Citing Note 2 to Section XVI, HTSUS, Husky argues that although the subject products are parts of plastic injection molding machines of heading 8477, HTSUS, they are goods that are also described by the terms of heading 8412, HTSUS, and therefore must be classified there.
It is not in dispute that the subject merchandise is mechanical rather than electrical. As a result, it is precluded from classification as an electrical motor of heading 8501, HTSUS. Non-electric engines and motors are classified in heading 8412, HTSUS, when they are not described by the prior headings of Chapter 84, HTSUS, especially headings 8406 to 8408, 8410, and 8411, HTSUS. See heading 8412, HTSUS; EN 84.12. Furthermore, merchandise of heading 8412, HTSUS, is classified according to its function, regardless of the industry in which it is used. See General EN to Chapter 84, HTSUS. Thus, we begin by examining how engines and motors function. While the ENs do not specifically define the terms “engine,” and “motor,” the ENs to headings 8406 to 8408, 8410 and 8411, HTSUS, list common examples such as car engines, jet engines, engines for agricultural machines and for propelling motorcars, tractors, locomotives, or ships in electric power stations, etc. Such engines and motors are also suitable for driving machinery, such as electric generators, compressors, ventilators, centrifugal pumps, saw mills and flour mills. See EN 84.06, EN 84.07, EN 84.08, EN 84.10, 84.11. EN 84.10 is the most specific when it states that heading 8410, HTSUS, covers items “which can, by themselves, transform into motive power the energy possessed by moving liquids or liquids under pressure (e.g., the flow or fall of water; pressure of water, oil or special fluids).” See EN 84.10.
This notion that engines and motors provide the force to move vehicles and drive machinery is supported by lexicographic definitions of the terms “engine” and “motor.” For example, Webster’s New World College Dictionary defines “engine” as “any machine that uses energy to develop mechanical power; esp. a machine for transmitting motion to some other machine.” See Webster’s New World College Dictionary (Wiley Publishing Inc. Fourth Edition) at page 471. Similarly, the Oxford English Dictionary defines the term “motor” as “a machine or mechanical agency which imparts motion,” and “a machine that supplies motive power for a vehicle or other device with moving parts.” See www.oed.com.
By contrast, the subject merchandise is used solely with plastic injection molding machines, and uses force to keep the mold in place during the molding cycle. Thus, instead of using power to move or drive an entire vehicle or machine, the subject merchandise uses force to hold a single component of a machine in place. As a result, the subject merchandise does not meet the definition of “engine” or “motor” and cannot be classified in heading 8412, HTSUS.
While we do not dispute that the clamp cylinder assembly and injection cylinder assembly are hydraulic components that convert pressure to linear motion, this, by itself does not make them linear acting hydraulic power engines or motors of subheading 8412.21.00, HTSUS, as Husky argues. To the contrary, they must be described at the heading level- i.e., as engines or motors- before they can be described at the subheading level. Because the subject merchandise does not meet the definition of an “engine” or “motor” of heading 8412, HTSUS, it cannot be described by any of the subheadings therein. Hence, it is not described as a “good included in any of the headings of chapter 84 or 85.” Note 2(a) to Section XVI, HTSUS. Rather, it is a part suitable for use with a machine of heading 8477, HTSUS. This heading covers machines that are classified there by reference to the field of industry in which they are used, regardless of their function. See General EN to Chapter 84, HTSUS. The heading covers machinery for the manufacture of rubber or plastic products that is not specified elsewhere in Chapter 84, HTSUS. See EN 84.77. Furthermore, the heading includes molding machines for tires or other articles of runner or plastics. See EN 84.77. Lastly, the heading covers parts of the machinery of the heading. See heading 84.77; EN 84.77.
The plastic injection molding machines of which the subject merchandise is a part are described by the terms of this heading. Husky admits that the merchandise is solely used with plastic molding machines. Hence, the subject merchandise is classified in heading 8477, HTSUS.
With respect to the article entitled “U.S. Customs Service Production Equipment Trade Educator” (PETE), to which Husky cites, we note that this article is neither a prior ruling issued by CBP, nor an opinion issued by the Court of International Trade or the Court of Appeals for the Federal Circuit. To the contrary, it an article in a newsletter that CBP issued to the field in one part of the country more than fifteen years ago. Husky itself notes that this article is not binding on CBP, an analysis with which we agree here. As a result, CBP is not bound to follow it or the analysis contained therein.
HOLDING:
Under the authority of GRIs 1 and 2(a), the subject merchandise is classified in heading 8477, HTSUS. It is specifically provided for in subheading 8477.90.25, HTSUS, which provides for: “Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof (con.): Parts: Base, bed, platen, clamp cylinder, ram, and injection castings, weldments and fabrications.”
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 the internet at www.usitc.gov/tata/hts/.
EFFECT ON OTHER RULINGS:
HQ H025103, dated February 6, 2009, is AFFIRMED.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division