CSMS Message: 99-000120

TO : ALL ABI BROKERS.

FROM : JIM H. TOKMENKO

SUBJECT : HTS- ABI DAILY MESSAGE

DATE : 03/02/1999

ABI DAILY MESSAGE

THE PURPOSE OF THIS ABI DAILY MESSAGE IS CALL ATTENTION TO A
PATTERN OF DISCREPANCIES AND NON-COMPLIANCE INVOLVING HTS 8464
WHICH HAVE LED TO AN UNACCEPTABLE COMPLIANCE RATE IN THE PAST
SEVERAL FISCAL YEARS. HTS HEADING 8464 COVERS MACHINE TOOLS FOR
WORKING STONE, CERAMICS, CONCRETE, ASBESTOS-CEMENT OR LIKE
MINERAL MATERIALS, OR FOR COLD-WORKING GLASS. MACHINES OF HTS
8464 ARE USUALLY DESIGNED TO BE MOUNTED ON THE FLOOR, ON A
BENCH, ON A WALL, OR ON ANOTHER MACHINE, AND ARE THUS USUALLY
PROVIDED WITH A BASE PLATE, MOUNTING FRAME, STAND, ETC. HTS
HEADING 8464 DOES NOT CONTAIN PROVISIONS FOR PARTS AND
ACCESSORIES OF THESE MACHINES, AND ALSO EXCLUDES MACHINES FOR
HOT-WORKING GLASS OF HTS HEADING 8475.

RESEARCH CONDUCTED BY THE U.S. CUSTOMS STRATEGIC TRADE CENTER IN
SOUTH FLORIDA, WHICH HAS INCLUDED A REVIEW OF ALL NON-COMPLIANT
IMPORTATIONS OF MACHINE TOOLS UNDER HTS 8464, IMPORTED FROM
OCTOBER 1, 1996, TO DATE, HAS IDENTIFIED SEVERAL SIGNIFICANT
PATTERNS TO THESE DISCREPANCIES:

(1) HTS 8464 COVERS ONLY MACHINE TOOLS FOR WORKING STONE,
CERAMICS, CONCRETE, ASBESTOS-CEMENT OR LIKE MINERAL
MATERIALS, OR FOR COLD WORKING GLASS. SIMILAR MACHINES
FOR WORKING WOOD, HARD PLASTICS, OR HARD RUBBER, ARE CLASSIFIED
UNDER
HTS 8465; MACHINES FOR HOT-WORKING GLASS ARE PROVIDED
FOR UNDER HTS 8475; AND MACHINES FOR WORKING EARTH, ORES,
CERAMIC PASTE, OR OTHER MINERAL SUBSTANCES IN SOLID FORM
ARE TO BE CLASSIFIED UNDER HTS 8474. ADDITIONALLY, METAL-
WORKING MACHINE TOOLS FOR DEBURRING, SHARPENING, GRINDING,
OR POLISHING, BY MEANS OF GRINDING STONES, ABRASIVES, OR
POLISHING PRODUCTS ARE PROVIDED FOR UNDER HTS 8460. ENTRY
DOCUMENTATION SUBMITTED TO CUSTOMS SHOULD CLEARLY STATE THE
MATERIAL THESE MACHINES ARE DESIGNED TO BE USED ON.

(2) MACHINE PARTS AND ACCESSORIES ARE NOT PROVIDED FOR
WITHIN HTS HEADING 8464. THEREFORE, IF AN IMPORTED
SHIPMENT CONTAINS NO MACHINES, JUST PARTS AND ACCESSORIES
FOR THE MACHINES, THESE PARTS AND ACCESSORIES MUST NOT BE
CLASSIFIED UNDER HTS 8464, AND SHOULD BE INDIVIDUALLY
CLASSIFIED ELSEWHERE WITHIN THE HARMONIZED TARIFF
SCHEDULE. WHEN CLASSIFYING THESE PARTS AND ACCESSORIES,
IMPORTERS MUST ABIDE BY THE RELEVANT SECTION NOTES AND
CHAPTER NOTES TO THE HARMONIZED TARIFF SCHEDULE SINCE
THESE NOTES PROVIDE THE LEGAL GUIDANCE AS TO WHAT ITEMS CAN AND
CANNOT BE CLASSIFIED UNDER SPECIFIC TARIFF HEADINGS. FOR
EXAMPLE, HTS SECTION XVI NOTE 1(G) STATES THAT PARTS OF
GENERAL USE, SUCH AS NUTS, BOLTS, SCREWS, AND SPRINGS, ARE
EXCLUDED FROM CLASSIFICATION UNDER HTS CHAPTERS 84 AND 85,
AND MUST BE CLASSIFIED UNDER THEIR OWN APPROPRIATE
HEADING. LIKEWISE, ITEMS OF HTS CHAPTER 90 (MEASURING AND
1CHECKING INSTRUMENTS; LASERS) ARE ALSO EXCLUDED FROM
CLASSIFICATION UNDER HTS CHAPTERS 84 AND 85 BY SECTION XVI
NOTE 1(M).

MANY MACHINE PARTS AND ACCESSORIES FOR THE MACHINES
COVERED BY HTS 8464 MAY BE CLASSIFIED UNDER HTS 8466,
UNLESS THESE PARTS AND ACCESSORIES ARE SPECIFICALLY
PROVIDED FOR ELSEWHERE WITHIN THE HARMONIZED TARIFF SCHEDULE.
IMPORTERS SHOULD REMEMBER, THAT IN ACCORDANCE WITH THE
GENERAL RULES OF INTERPRETATION AND ANY RELEVANT LEGAL
NOTES, CERTAIN MACHINE PARTS ARE ALWAYS CLASSIFIED IN THEIR OWN
APPROPRIATE TARIFF HEADING, EVEN IF SPECIALLY DESIGNED TO WORK
AS PART OF A SPECIFIC MACHINE. EXAMPLES INCLUDE BEARINGS,
MOTORS, PUMPS, VALVES, CONTROLS, AND MEASURING DEVICES.
ADDITIONAL EXAMPLES OF MACHINE PARTS WHICH ARE ALWAYS CLASSIFIED
IN THEIR OWN APPROPRIATE TARIFF HEADING, EVEN IF SPECIALLY
DESIGNED TO WORK AS PART OF A SPECIFIC MACHINE, CAN BE
FOUND IN THE SECTION XVI NOTES TO THE HTS, AND ON PAGE 1131 OF
THE EXPLANATORY NOTES.

IF THE IMPORTED SHIPMENT CONSISTS OF MACHINES ONLY,
YET THE IMPORT INVOICE FOR THE MACHINE LISTS A BASE PRICE
AND SEPARATELY LISTS VARIOUS OPTIONS OR ACCESSORIES PROVIDED
WITH THE MACHINE, SUCH AS GRINDING WHEELS, DRESSING DEVICES,
INTERNAL GRINDING ATTACHMENTS, TYPES OF MOTOR, ETC., THESE
ITEMS DO NOT NEED TO BE SEPARATELY CLASSIFIED. THE ITEMS
REMAIN CLASSIFIED WITH THE MACHINE IN HTS 8464. IF THE IMPORTED
MACHINES CONTAIN SPARE PARTS, THESE SPARE PARTS MUST BE
SEPARATELY CLASSIFIED.

(3) MILLSTONES, GRINDSTONES, AND SIMILAR ARTICLES ARE TO BE
CLASSIFIED IN HTS
CHAPTER 68, BY VIRTUE OF LEGAL NOTE 1(A) TO CHAPTER
84. MILLSTONES (HTS 6804) ARE OFTEN MISCLASSIFIED UNDER
HTS 8464.

(4) THE IMPORTED MERCHANDISE IS NOT PROPERLY MARKED WITH
THE COUNTRY OF ORIGIN AT TIME OF IMPORTATION.

(5) ONLY THOSE MACHINES SPECIFICALLY DESIGNED TO SLICE
BLANK SEMICONDUCTOR WAFERS FROM CRYSTAL BOULES (INGOTS) OF
SEMICONDUCTOR GRADE MATERIALS ARE TO BE CLASSIFIED UNDER
HTS 8464.10.0040. WAFER DICING MACHINES SHOULD BE CLASSIFIED
UNDER HTS 8464.10.0080.

(6) HTS 8464 CONTAINS SEVERAL TARIFF PROVISIONS FOR
MACHINERY SPECIFICALLY DESIGNED TO PROCESS SEMICONDUCTOR
WAFERS, SPECIFICALLY HTS 8464.10.1040, HTS 8464.20.10, HTS
8464.90.10, AND HTS 8464.90.60. NON-SEMICONDUCTOR PROCESSING
MACHINERY IS OFTEN MISCLASSIFIED UNDER THESE SPECIFIC
SEMICONDUCTOR PROVISIONS.

(7) TILE SAWS ARE TO BE CLASSIFIED UNDER HTS 8464.10.0080,
WHILE "SCORE'N'SNAP" TILE CUTTERS SHOULD BE CLASSIFIED
1UNDER HTS 8464.90.9090. "SCORE'N'SNAP" TILE CUTTERS
USUALLY CONSIST OF A BASE WITH A TILE BREAKING AREA, WITH A
REPLACEABLE, ADJUSTABLE GUIDE, A SCORING WHEEL, AND A HIGH
LEVERAGE HANDLE WHICH IS USED TO SNAP THE TILE.

(8) HTS 8464 COVERS ONLY MACHINE TOOLS. VARIOUS TYPES OF
HAND TOOLS, WHICH ARE PROVIDED FOR UNDER HTS CHAPTER 82,
ARE OFTEN FOUND TO HAVE BEEN MISCLASSIFIED UNDER HTS 8464.
MOST COMMON ARE SAW BLADES (HTS 8202), PLIERS (HTS 8203),
HAND OPERATED GRINDING WHEELS AND CHISELS (HTS 8205), AND
INTERCHANGEABLE TOOLS FOR HAND TOOLS (HTS 8207). TOOLS FOR
WORKING IN THE HAND WHICH HAVE EITHER PNEUMATIC OR SELF-
CONTAINED NON-ELECTRIC MOTORS ARE PROVIDED FOR UNDER HTS 8467.

ON FEBRUARY 23, 1999, THE SOUTH FLORIDA STRATEGIC TRADE CENTER
ISSUED INFORMED COMPLIANCE LETTERS TO 295 SIGNIFICANT IMPORTERS
OF MACHINE TOOLS FOR WORKING STONE, CERAMICS, CONCRETE,
ASBESTOS-
CEMENT OR LIKE MINERAL MATERIALS, OR FOR COLD-WORKING GLASS,
CLASSIFIED UNDER HTS HEADING 8464. THE PURPOSE OF THESE LETTERS
WAS TO INFORM THE IMPORTERS OF OUR CONCERNS AND THE CURRENT
TREND OF DISCREPANCIES. THESE FIRMS WERE ALSO NOTIFIED THAT IF
THEIR COMPANY'S INDIVIDUAL IMPORT TRANSACTIONS ARE NOT FREE FROM
THESE TYPE OF ERRORS OUTLINED IN THE LETTERS, AND THEY DO NOT
TAKE IMMEDIATE CORRECTIVE ACTIONS DESIGNED TO FOSTER COMPLIANCE,
THEIR COMPANY COULD FIND ITSELF SUBJECT TO INCREASED ENTRY
REVIEWS AND/OR CARGO EXAMINATIONS, PENALTIES, OR OTHER REMEDIAL
ACTIONS.

THIS ABI DAILY MESSAGE IS BEING PROVIDED TO HELP MAXIMIZE
COMPLIANCE AND AVOID THE ERRORS WHICH ARE COMMON TO MERCHANDISE
CLASSIFIED UNDER HTS 8464. FOR FURTHER INFORMATION, PLEASE
CONTACT THE IMPORT SPECIALISTS AT YOUR LOCAL PORT OF ENTRY, OR
INTERNATIONAL TRADE SPECIALIST MICHELLE NUALART AT THE SOUTH
FLORIDA STRATEGIC TRADE CENTER AT (954) 327-2806.