HQ 087740
AUG 20 1990
CLA-2:CO:R:C:G 087740 JAS
Robert T. Givens, Esq.
Givens and Kelly
950 Echo Lane, Suite 360
Houston, Texas 77024
RE: Continuous Casting Plant
Dear Mr. Givens:
Your letter of July 26, 1990, on behalf of Golden Aluminum
Company, Lakewood, Colorodo, concerns the tariff status of the
Lauener block caster/reduction/coiler plant. Additional
information was submitted in the form of a meeting in our
office, supplemental brief, blueprints, color photographs, and
a video cassette.
Our previous ruling to you, dated June 7, 1990 (086736),
addressed the tariff status of the caster unit, reduction
group, and tandem coilers. Lacking sufficient information, we
were unable to consider the remaining components. You
specifically ask that we reconsider the issue of whether the
entire plant, the components of which you now state will be
imported in the same shipment, is a composite machine for
tariff purposes, and also that we address the status of the
steel foundation parts which support the plant.
FACTS:
The material appearing under FACTS in the June 7 letter is
incorporated by reference in this decision. The additional
components we were unable to consider previously consist of the
plant's hydraulics (the system of pumps and tanks containing
fluids which supply the power for the machinery), a roller-type
conveyor for moving the aluminum slab from the reduction group
through the edge trimmer to the shear then to the tandem
coilers, and the plant's programmable controlling apparatus in
the form of a console with keyboards and CRTs, designed to
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control the plant's entire operation. However, the steel
foundation which you previously stated was to be imported
separately, will now be imported in the same shipment with all
the components necessary to complete the plant.
The steel foundation is described as a series of masts and
tie-in frames. The masts are vertical support elements
consisting of a series of welded plates. H or I beams attach
to these masts and bear the weight of the plant's components
which rest on them. The bottom of each mast attaches to a
tie-in frame which is a steel plate bolted to the concrete
floor. The masts and tie-in frames support and stabilize the
beams. The masts and tie-in frames supporting the
tundish/caster unit also contain hydraulic lifting mechanisms
which allow that unit to be tilted at various angles. This
permits the hot aluminum slab to be control cooled by adjusting
the speed at which it passes through the chilling blocks. The
rate at which the slab is allowed to cool depends on the
particular aluminum alloy being used. Assemblies of masts,
tie-in frames and beams run the entire length of the composite
plant on both sides, from the tundish/caster to the tandem
coilers. These parallel assemblies are connected by a series
of beams running perpendicular between them.
ISSUE:
Whether the plant components, as described, constitute a
composite machine for tariff purposes.
LAW AND ANALYSIS:
Merchandise is classifiable under the HTSUSA in accordance
with the General Rules of Interpretation (GRIs). GRI 1 states
that for legal purposes, classification shall be determined
according to the terms of the headings and any relative section
or chapter notes and, provided the headings or notes do not
provide otherwise, according to GRIs 2 through 6.
Section XVI, Note 3, HTSUSA, states in part that composite
machines consisting of two or more machines fitted together to
form a whole and other machines adapted for the purpose of
performing two or more complementary or alternative functions
are to be classified as if consisting only of that component of
as being that machine which performs the principal function.
The Explanatory Notes (ENs) which constitute the Customs
Cooperation Council's official interpretation of the Harmonized
System, at p. 1133 explain General Explanatory Note 3 to
Section XVI and state that for the purposes of [the provisions
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relating to composite machines and multi-function machines],
machines of different kinds are taken to be fitted together to
form a whole when (1) incorporated one in the other or (2)
mounted one on the other, or (3) mounted on a common base or
frame or in a common housing (emphasis original). The ENs
continue by stating that floors, concrete bases, walls,
partitions, ceilings, etc., even if specially fitted out to
accomodate machines or appliances, should not be regarded as a
common base joining such machines or appliances to form a
whole.
Our June 7 ruling was predicated on the lack of evidence
of sufficient structural interrelationship of the plant's
components to warrant the conclusion that they were
incorporated one in the other for purposes of note 3. We now
find from the additional material submitted that the components
arriving in the same shipment are mounted on a common base or
frame for purposes of note 3. Therefore, we find that the
components of the casting plant constitute a composite machine
whose principal function is the casting of aluminum slab.
HOLDING:
Under the authority of Section XVI, Note 3, the
tundish/caster unit, shears, reduction group, edge trimmer,
tandem coilers, conveyor, hydraulics, programmable controlling
apparatus and steel framework, as described, all of which are
imported in the same shipment, are provided for free of duty in
heading 8454 as a casting machine of a kind used in metal
foundries. Actual classification is in subheading
8454.30.0090, HTSUSA.
Sincerely,
John Durant, Director
Commercial Rulings Division