CLA-2-84:OT:RR:NC:N1:164
Ramesh Nuthi
Flame Cut Steel Inc
300 Coit St. Irvington, NJ 07111
RE: The tariff classification of a Computer Numerical Control (CNC) Band Sawing Machine and a CNC Angle Punching, Marking, and Shearing Line from China
Dear Mr. Nuthi:
In your letter dated February 29, 2024, you requested a tariff classification ruling. The first product at issue is a CNC Band Sawing Machine (Model BS1250). The device is a double column, high-precision horizontal sawing machine which uses a motor-driven, continuous saw blade to cut various structural steel products, including, but not limited to H-beams and geometric profiles. During operation, a workpiece is horizontally fed on a track into the work area, perpendicular to the saw blade, and clamped into position using hydraulic power. According to the specifications programmed into the onboard CNC interface, the saw blade is vertically moved into the workpiece at high linear speed and cuts off a terminal section to precise length and angle. As a result of this process, a steel product is reduced into multiple precisely-cut custom steel products.
You suggest classification of the CNC Band Sawing Machine in 8461.50.0090, Harmonized Tariff Schedule of the United States (HTSUS). This subheading does not exist in the current HTSUS, however, we will postulate that you meant 8461.50.4050, HTSUS, which provides for Machine tools for planing, shaping, slotting, broaching, gear cutting, gear grinding or gear finishing, sawing, cutting-off and other machine tools working by removing metal or cermets, not elsewhere specified or included: Sawing or cutting-off machines: Numerically controlled: Other. We agree that the applicablesubheading for the CNC Band Sawing Machine (Model BS1250) will be 8461.50.4050, HTSUS. The general rate of duty will be 4.4 percent ad valorem.
The second product under consideration is a CNC Angle Punching, Marking, and Shearing Line (Model APM2020). The device is composed of conveyors, infeed carriage, CNC interface, punching unit, marking unit, cutting unit, and related hydraulic, electrical, and pneumatic systems. Within the main housing are three separate units which operate independently; one punching unit head, one marking unit head, and one shearing unit head. Each unit head requires the workpiece to travel to it using the force of the trailing motorized carriage. As the steel angle is automatically fed perpendicularly into the main housing each unit head is moved into the workpiece successively at high force using hydraulic power. The punching unit head is fitted with interchangeable punches that create holes or slots in the workpiece to programmed specifications. The marking unit head is fitted with interchangeable dies that mark the angles with alphanumeric (or other) characters to communicate information to an end user, including but not limited to length, specification, and model number. The shearing unit head is vertically moved into the workpiece at high force and cuts off a terminal section to precise length. The resulting product is a steel angle that, depending on what is programmed into the onboard computer, is cut to length and features holes, slots, and marking.
You suggest classification of the CNC Angle Punching, Marking, and Shearing Line in 8462.42.1200, HTSUS. This subheading does not exist in the current HTSUS, however, we will postulate that you meant 8462.42.0080, HTSUS, which provides for Machine-tools (including presses) for working metal by forging, hammering, or die forging (excluding rolling mills); machine-tools (including presses, slitting lines and cut-to length lines) for working metal by bending, folding, straightening, flattening, shearing, punching, notching, or nibbling (excluding draw benches); presses for working metal or metal carbides, not specified above: Punching, notching or nibbling machines (excluding presses) for flat products including combined punching and shearing machines: Numerically controlled: Other. We disagree.
Under General Rule of Interpretation (GRI) 1, HTSUS, goods are to be classified according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6. Furthermore, the Harmonized System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. Though not dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS.
Although heading 8462, HTSUS, specifically names two of the operations performed, it does not provide for marking, and the relevant 8462 ENs specifically exclude Machining centers, unit construction machines (single station) and multi-station transfer machines, for working metal (heading 8457).
Chapter 84, Note 4(c), HTSUS, states that heading 8457 applies only to machine tools for working metal, other than lathes, which can carry out different types of machining operations by the automatic transfer of the workpiece to different unit heads (multi-station transfer machines). Relevant 8457 ENs describe multi-station transfer machines that must satisfy three conditions: (1) they must carry out several machining operations, (2) they must work by the automatic transfer of the workpiece to the tool and, (3) they must be equipped with various unit heads. In our opinion, the machine in question satisfies all three conditions: it carries out three machining operations, the workpiece is automatically transferred to each unit head within the main housing, and the machine is equipped with three unit heads (punching, marking, and shearing).
Therefore, by operation of GRI 1, specifically Chapter 84 Note 4(c), the applicable subheading for the CNC Angle Punching, Marking, and Shearing Line will be 8457.30.0010, HTSUS, which provides for Machining Centers, unit construction machines (single station) and multi-station transfer machines, for working metal: Multistation transfer machines: Numerically controlled. The rate of duty will be 3.3 percent ad valorem.
Products of China classified under subheading 8461.50.4050, HTSUS, and 8457.30.0010, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading 9903.88.01, HTSUS, in addition to the applicable subheadings listed above.
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 at https://hts.usitc.gov/current.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist PAUL TAYLOR at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division