CLA-2
OT:RR:CTF:TCM H253888 PTM
TARIFF NO: 8456.10.80
Ms. Teena Mathis
Zale Corporation
901 W. Walnut Hill Lane
Irving, TX 75038
RE: Revocation of NY N210384; Tariff Classification of a Cold Laser Marker
Dear Ms. Mathis,
On April 19, 2012 we issued New York Ruling Letter (“NY”) N210384 in response to your ruling request concerning the tariff classification of a Gemscriptor. In N210384, we determined that the proper tariff classification of the Gemscriptor under the Harmonized Tariff Schedule of the United States (“HTSUS”) was under subheading 8464.90.0120, which provides for “Machine tools for working stone, ceramics, concrete, asbestos-cement or like mineral materials or for cold working glass: Other...Other.” We have reviewed N210384 and find it to be in error. For the reasons set forth below, we hereby revoke N210384.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625 (c)(1)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), a notice was published in the Customs Bulletin, Vol. 50, No. 22, on June 1, 2016, proposing to revoke N210384, and any treatment accorded to substantially identical transactions. No comments were received in response to this notice.
FACTS:
In N210384, we described the merchandise as follows:
The Gemscriptor Model #PS-300-R (“Gemscriptor”) is a cold laser marker. This diamond marking/inscription machine is a floor type unit mounted on castors. It runs on 240 volts, 50 – 60 Hz. The Gemscriptor is used to mark any type of gem on any side. It is also used for gem authentication and identification. This versatile unit allows the user to choose any letter or logo height (<25 microns to >2mm). The Gemscriptor comes equipped with a special table marking holder, a ring holder and a diamond holder. These holders are mounted internally during use.
At time of importation, the Gemscriptor is configured to incorporate a BLS Excimer UV laser unit, a positioning system and computer software. The cold UV laser technology is harmless for diamonds and no coatings or protection are needed. The positioning system of the Gemscriptor PS-300-R contains OWIS optical grade, high precision co-ordinate (X-Y-Z) tables. The X-Y-Z axes travel at 25mm and contain high precision stepper motors. The maximum working speed is 1mm/sec and the repeatability works on Z axis, 10µm (vertical) and the X – Y axis at 2µm (horizontal).
Thus, the Gemscriptor consists of a cold laser marker, work holders and positioning tables. The classification request for N210384 provided additional details:
The system is mounted on castors…The frame is isolated and the laser-marking unit vibration free… [the system perfoms]
Gem authentication and identification
Mark any type of gem, pears, etc. on any side
Mark: Rounds, Fancies, Marquise, Emeralds, Princes of any size
…
Inscribe on any type of gem
Easy access to the working area, easy mount of the stones on a quick release magnetic holder.
The following is an image of the Gemscriptor:
ISSUE:
What is the proper tariff classification of the Gemscriptor?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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, GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration are as follows:
8456 Machine tools for working any material by removal of material, by laser or other light or photon beam, ultrasonic, electro-discharge, electro-chemical, electron-beam, ionic-beam or plasma arc processes; water-jet cutting machines:
* * *
8464 Machine tools for working stone, ceramics, concrete, asbestos-cement or like mineral materials or for cold working glass:
Note 3 to Chapter 84, HTSUS provides:
A machine tool for working any material which answers to a description in heading 8456 and at the same time to a description in heading 8457, 8458, 8459, 8460, 8461, 8464 or 8465 is to be classified in heading 8456.
Therefore, if the subject merchandise is prima facie classifiable under heading 8456, HTSUS, it is classified under that heading regardless of whether it might be described by heading 8464, HTSUS.
The EN to heading 8456, HTSUS, provides, in pertinent part, the following:
The machine-tools of this heading are machines used for the shaping or surface-working of any material. They must meet three essential requirements:
(i) They must work by removing material;
(ii) They must carry out operations of the kind performed by machine-
tools equipped with conventional tools;
(iii) They must use one of the following seven processes: laser or
other light or photon beam, ultrasonic, electro-discharge, electro-chemical, electron beam, ionic-beam or plasma arc.
The plain text of heading 8456 covers machine tools that remove material by laser. The Gemscriptor at issue here is a cold laser marker. It incorporates a BLXS Excimer UV laser unit, positioning system and operating software. It comes equipped with a table marking table, ring holder and diamond holder that are mounted internally. The Gemscriptor is used to engrave gemstones. It operates by using a laser to remove trace amounts of material from the gem.
In order to meet the description of the EN for heading 84.56, the three afore-mentioned criteria must be satisfied. The Gemscriptor meets the first criteria inasmuch as it removes trace amounts of surface material from the gemstone by laser to mark the gems. It carries out operations, marking and engraving, that can be performed by machine-tools equipped with conventional tools. Finally, the Gemscriptor uses a cold-marking laser to perform its function. Because the three criteria are met, we find that the Gemscriptor is described by the EN for heading 84.56.
The EN to heading 84.67 is consistent with Note 3 to Chapter 84, supra, and states:
This heading also excludes :
* * *
(c) Machine tools for working any material by removal of material, by laser or other light or photon beam, ultrasonic or plasma arc processes and other machines of heading 84.56
(Emphasis added)
Thus, heading 84.67 covers machining tools, but excludes those machining tools that work by removing material with a laser or other light or photon beams. The Gemscriptor removes material with a cold-marking laser. Consequently, it is excluded from heading 84.67.
Prior CBP rulings have classified machines incorporating lasers with ancillary equipment in heading 8456 HTSUS. For example, in NY R00499 (July 9, 2004), CBP classified bench top and floor-standing laser marking machines in heading 8456 HTSUS. In HQ 087513 (Nov. 5, 1990), the legacy Customs Service classified an industrial laser in a fully enclosed machining station under heading 8456 HTSUS. Based on the foregoing, we find that the Gemscriptor is properly classified in heading 8456 HTSUS.
HOLDING:
By application of GRI 1, the Gemscriptor is classified in heading 8456 HTSUS. Specifically, it is classified in subheading 8456.10.8000, which provides for “Machine tools for working any material by removal of material, by laser or other light or photon beam, ultrasonic, electro-discharge, electro-chemical, electron-beam, ionic-beam or plasma arc processes; water-jet cutting machines: Operated by laser or other light or photon beam processes: Other.” The column one, general rate of duty is 2.4% ad valorem.
Duty rates are provided for 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/.
EFFECT ON OTHER RULINGS:
NY N210384 is hereby REVOKED
In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division