OT:RR:CTF:EMAIN HQ H287198 NVF
Machinery Center of Excellence and Expertise
U.S. Customs and Border Protection
2323 S. Shepherd
#1200
Houston, TX 77019
Attn: Byron Kaiser, Import Specialist
RE: Request for Internal Advice on Tariff Classification of Fin Stamping Die
Dear Center Director:
This is in response to a request for internal advice concerning the proper classification of a fin stamping die. The request was filed by Sheppard Mullin on behalf of Goodman Global Holdings, Inc. and its wholly owned subsidiary, Good Manufacturing Company, L.P. (“Goodman”).
FACTS:
On May 2, 2017, Goodman Global Holdings, Inc. (“Goodman”) requested internal advice from HQ concerning the classification of a fin stamping die.
The fin stamping die at issue is a large metal tool that is placed into a stamping press machine to stamp and pierce aluminum sheet. The resulting stamped aluminum part, known as a fin, is used to manufacture evaporator coils. The fin stamping die is interchangeable and can be exchanged with a different die to manufacture a fin with different configurations.
The subject fin stamping die measures approximately 5 feet long by 4 feet wide by 1 foot deep and is constructed of hardened steel and carbide alloy. It consists of an upper and a lower plate. Sheets of aluminum are fed between the plates through a stamping press. The two plates of the die are pressed together by the stamping press, into and through parts of the aluminum to form the shape necessary for use in an evaporator coil.
Goodman argues that the fin stamping die is specifically provided for under heading 8207 of the Harmonized Tariff Schedule of the United States (“HTSUS”) and therefore is excluded from heading 8466 by Note 1 to Chapter 84 of the HTSUS. Goodman further contends that the fin stamping die is a tool not suitable for cutting metal and is therefore classified under subheading 8207.30.60, HTSUS which provides for tools for pressing, stamping, or punching that are not suitable for cutting metal.
ISSUE:
Whether the fin stamping die is classified under 8207, HTSUS as interchangeable tools for hand tools, or for machine-tools, including dies for drawing or extruding metal or under 8466, HTSUS as parts of accessories suitable for use solely or principally with machines of headings 8456 to 8465.
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification 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 GRIs 2 through 6 may then be applied in order.
The HTSUS headings under consideration are as follows:
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8207 Interchangeable tools for hand tools, whether or not power-operated, or machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screw driving), including dies for drawing or extruding metal, and rock drilling or earth boring tools.
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8466 Parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for the machines; tool holders for any type of tool for working in the hand..
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HTSUS Additional U.S. Rule of Interpretation 1(c) states that “a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for ‘parts’ or ‘parts and accessories’ shall not prevail over a specific provision for such part or accessory.” Furthermore, Note 1(k) to Section XVI of the HTSUS, which encompasses heading 8466, states that Section XVI does not cover articles of chapter 82. Note 1(o) to Section XVI excludes “interchangeable tools of heading 8207” from classification in Chapter 84. Therefore, before considering whether the find stamping is classifiable under heading 8466, we must first determine whether it is prima facie classifiable as good of heading 8207, HTSUS.
Heading 8207, HTSUS, provides for, inter alia, “Interchangeable tools for machine-tools (for example, for pressing, stamping, punching).” This heading describes the fin stamping die. The die is an interchangeable tool which fits into a stamping machine and is used to stamp and punch parts for an evaporator coil. CBP has previously classified similar stamping dies for metal under heading 8207. E.g. HQ 964213 (Mar. 20, 2001) (cutting and forming dies); NY N298417 (Jul. 18, 2018) (press forge die blank); NY N295035 (Mar. 30, 2018) (progressive stamping dies). Therefore, the subject fin stamping die is prima facie classifiable under heading 8207, HTSUS. Because it is classified under heading 8207, it cannot be classified in heading 8466 pursuant to Additional U.S. Rule of Interpretation 1(c) and Notes 1(k) and 1(o) to Section XVI of the HTSUS.
In light of the foregoing, we conclude that the subject fin stamping die is classified under heading 8207, HTSUS as interchangeable tools for hand tools, whether or not power-operated, or machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screw driving), including dies for drawing or extruding metal, and rock drilling or earth boring tools.
HOLDING:
By application of GRIs 1 and 6, the fin stamping die is classified under subheading 8207.30.60, HTSUS which provides for “Interchangeable tools for hand tools, whether or not power-operated, or machine-tools (for example, for pressing, stamping, punching, tapping, threading, drilling, boring, broaching, milling, turning or screw driving), including dies for drawing or extruding metal, and rock drilling or earth boring tools: Tools for pressing, stamping or punching, and parts thereof: Not suitable for cutting metal, and parts thereof. The column one, general rate of duty is 2.9% ad valorem.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 Fed. Reg. 28710), August 16, 2018 (83 Fed. Reg. 40823), and September 21, 2018 (83 Fed. Reg. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8207.30.60, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, the importer must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8207.30.60, HTSUS, listed above.
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 the internet at www.usitc.gov/tata/hts/.
Sixty days from the date of this decision, the Office of Trade, Regulations and Rulings, will make this decision available for CBP personnel, and to the public on the CBP Home Page at http://www.cbp.gov by means of the Freedom of Information Act, and other methods of publication.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division