CLA-2-84:S:N:N1:103 866982
Mr. Sidney H. Kuflik
Lamb & Lerch
233 Broadway
New York, NY 10279
RE: The tariff classification of a ship unloader from Germany
and Hungary, and conveyor belting from Japan
Dear Mr. Kuflik:
In your letter dated September 11, 1991 on behalf of Robins
Engineers & Constructors Inc. you requested a tariff
classification ruling.
According to your inquiry, your client will be importing a
complete ship unloader. The ship unloader will be composed of
various mechanical components and fabricated structural
components of steel. The mechanical components, valued at
approximately $3.2 million, will be manufactured in Germany. The
fabricated structural steel, worth approximately $1 million,
will be produced in Hungary. The combination of the mechanical
and structural components constitutes the complete ship unloader.
The ship unloader will be used to continuously unload coal
from a bulk coal carrier and convey it to the dock. It basically
consists of an L-shaped bucket elevator, a slewing boom and
conveyor, a counterweight boom, a portal frame which travels on
rails, and mechanical and electrical controls and drives. The
bucket elevator consists of steel buckets bolted to a steel
chain, plastic guide rollers, and a drive system located at the
elevator discharge point. The horizontal boom is capable of
slewing the elevator so that it can reach into all areas of the
hold and can position the buckets as close as 100 millimeters
from the walls of the hold. The boom is attached to the portal
frame by means of a central slewing pylon. The upper frame
structure also contains a counterweight boom which can be moved
up and down by a hydraulic cylinder to compensate for the
vertical movement of the bucket elevator and conveyor boom. The
operator's cabin is located on a platform suspended beneath the
slewing pylon. This platform also contains the electrical and
hydraulic equipment necessary for the operation of the unloader.
Steel portals support the platform and access stairways. The
portals are attached to pivoting bogies which incorporate wheel
trucks and allow the entire unloader to move along the dock.
In operation, the bucket elevator is lowered through the
vessel's hatch and into the hold containing the coal. The
buckets scoop up the coal and carry it vertically to the slewing
conveyor boom. The coal is discharged onto a horizontal belt
conveyor which is enclosed to prevent spillage. The conveyor
transfers it to a chute, where it falls onto a second belt
conveyor located on the portal. From here it is conveyed to a
discharge chute which deposits it onto a separate belt conveyor
located on the dock.
Your client will also import the conveyor belting used in
the dock conveyor to carry the coal to a power plant situated
approximately 9000 feet from the pier. You have indicated that
there are no manufacturer's specifications or sectional drawings
available on the subject belting. Our reply is predicated on the
information that you have provided. The belting is composed of
rubber with tensile steel cords and you write that there are no
textile components. The steel cords (ST 1250) are covered with
rubber and sandwiched between two plies of rubber, an 8 mm top
cover and a 6 mm bottom cover. The approximate overall thickness
of the belt is 20 mm with the width given as 1600 mm. There will
be approximately 17,040 feet of belting imported. The belting
will be made in Japan and imported separately from the unloader.
You state the Hungarian made fabricated steel components
consist of the non-mechanical portions of the boom and
counterweight boom, pylon, slewing base, portals and portal
platform, and equalizer bogies. These will be transported by
truck to Antwerp and loaded onto a transport ship. The
machinery portions of the ship unloader, which will be produced
in Germany, will also be transported to Antwerp and loaded onto
the same vessel as the Hungarian made components. The vessel
will deliver both shipments, which comprise the entire unloader,
to Honolulu. While they will be on the same vessel, you state
the structural and mechanical portions of the unloader will each
have its own separate bill of lading, invoice, packing list, and
certificate of origin. You further state that when each portion
leaves its respective factory it will be destined for the United
States with no contingency of diversion.
You request a ruling as to the tariff classification of the
ship unloader when both the German and Hungarian portions are
imported on a single vessel and entered on a single entry. You
also request a ruling as to the tariff classification of the
conveyor belting. In a telephone conversation with a member of
my staff, you stated that you were no longer interested in
receiving a ruling for the German and Hungarian portions of the
ship unloader entered separately.
The General Rules of Interpretation provide the framework
for interpreting the Harmonized Tariff Schedule of the United
States (HTS). General Rule of Interpretation 2(a) holds, among
other things, that any reference to an article in a heading shall
include a reference to that article complete or finished, entered
unassembled or disassembled. The machinery and structural
components, imported on a single vessel and entered on a single
entry, form a complete unassembled ship unloader. Accordingly,
following the dictates of GRI 2(a), the applicable subheading for
the unassembled ship unloader will be 8428.90.0090, HTS, which
provides for other lifting, handling, loading or unloading
machinery: other machinery: other: other. The rate of duty for
subheading 8428.90.0090 is dependent on the country of origin of
the ship unloader, a portion of which is made in Germany and a
portion of which is made in Hungary. It is axiomatic that a
single article cannot have more than one country of origin.
Noting the relative values of the German and Hungarian portions
of the ship unloader, as well as the complexity of the German
made equipment in comparison to the components made in Hungary,
in our opinion the country of origin of the ship unloader, when
viewed as an entity, is Germany. Thus, the rate of duty will be
2 percent ad valorem.
The applicable subheading for the conveyor belting will be
4010.91.5090, HTS, which provides for conveyor or transmission
belts or belting, of vulcanized rubber: of a width exceeding 20
cm: not containing textile materials. The rate of duty will be
4.2 percent ad valorem.
This ruling is being issued under the provisions of Section
177 of the Customs Regulations (19 C.F.R. 177).
A copy of this ruling letter should be attached to the entry
documents filed at the time this merchandise is imported. If the
documents have been filed without a copy, this ruling should be
brought to the attention of the Customs officer handling the
transaction.
Sincerely,
Jean F. Maguire
Area Director
New York Seaport