CLA-2-84:OT:RR:NC:1:104
Mr. Brent E. Hilton
Intermountain Electronics Inc.
P.O. Box 914
Price, UT 84501
RE: The tariff classification of a GEORG Transformer Lamination Cut-to-Length Line with Stacking System from Germany
Dear Mr. Hilton:
In your letter dated July 20, 2010, you requested a tariff classification ruling.
The imported equipment is called a GEORG Transformer Lamination Cut-to-Length Line Type TBA/ME/EL 400 x 2000 PB/T with GEORG CNC 1000W Control System and Stacking System. This equipment cuts steel for use in the production of transformer cores of various sizes. According to the submitted scope of supply, the line consists essentially of a hydraulic double sided de-coiler, loop control, transport and CNC feed control unit, a V notch, a 1 hole punching unit, a shearing unit, a magnetic transport belt, a stacking system with sheet stopping system and all the necessary handling equipment and electrical controls.
In an email correspondence with a member of my staff, you confirmed that the entire line will be imported in a single shipment. When imported together in one shipment, the machines which comprise the line are intended to contribute together to the clearly defined function of metal cutting and, thus, form one complete functional unit.
The applicable subheading for the GEORG Transformer Lamination Cut-to-Length Line Type TBA/ME/EL 400 x 2000 PB/T with GEORG CNC 1000W Control System and Stacking System, imported in a single shipment, will be 8462.31.0080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Machine tools (including presses) for working metal by forging, hammering or die-stamping; machine tools (including presses) for working metal by bending, folding, straightening, flattening, shearing, punching or notching; presses for working metal or metal carbides, not specified above: Shearing machines (including presses), other than combined punching and shearing machines: Numerically controlled … Other. The rate of duty will be 4.4 percent ad valorem.
In your letter, you state that the line will be used in the production of more energy efficient transformers. Said transformers will, in turn, be used by utility companies and municipalities in the rebuilding and repairing of grid and infrastructure systems. In view of this fact, you ask whether the line could be imported free of duty.
There is no provision in the HTSUS which would allow this machine to be imported free of duty under the circumstance you describe. Accordingly, the applicable subheading for the GEORG Transformer Lamination Cut-to-Length Line with Stacking System remains 8462.31.0080, HTSUS.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
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 Patricia O’Donnell at (646) 733-3011.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division