| Title: | ABI DAILY MESSAGE |
|---|---|
| Date: | 1999-03-03 |
| To: | abi |
| Links: | previous, next |
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 8460
WHICH HAVE LED TO AN UNACCEPTABLE COMPLIANCE RATE IN THE PAST
SEVERAL FISCAL YEARS. HTS HEADING 8460 COVERS CERTAIN SURFACE-
FINISHING MACHINES FOR METAL, SINTERED METAL CARBIDES, OR
CERMETS, AND THESE MACHINES WORK BY REMOVING MATERIAL BY MEANS
OF GRINDING STONES, ABRASIVES, OR POLISHING PRODUCTS. MACHINES
OF HTS 8460 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 8460 DOES NOT CONTAIN PROVISIONS FOR PARTS AND
ACCESSORIES OF THESE MACHINES, AND ALSO EXCLUDES GEAR CUTTING,
GEAR GRINDING OR GEAR FINISHING MACHINES OF HTS HEADING 8461.
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 8460, IMPORTED FROM
OCTOBER 1, 1996, TO DATE, HAS IDENTIFIED SEVERAL SIGNIFICANT
PATTERNS TO THESE DISCREPANCIES:
(1) HTS 8460 COVERS ONLY METAL-WORKING MACHINE TOOLS FOR
DEBURRING, SHARPENING, GRINDING, HONING, LAPPING, OR
POLISHING, BY MEANS OF GRINDING STONES, ABRASIVES, OR
POLISHING PRODUCTS. SIMILAR MACHINES FOR WORKING WOOD, HARD
PLASTICS, OR HARD RUBBER, ARE CLASSIFIED UNDER HTS 8465;
MACHINES FOR WORKING STONE, CERAMICS, OR CONCRETE ARE
PROVIDED FOR UNDER HTS 8464; AND MACHINES FOR WORKING EARTH,
ORES, CERAMIC PASTE, OR OTHER MINERAL SUBSTANCES IN SOLID
FORM ARE TO BE CLASSIFIED UNDER HTS 8474. 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 8460.
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
8460, 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
CHECKING INSTRUMENTS; LASERS) ARE ALSO EXCLUDED FROM
1CLASSIFICATION UNDER HTS CHAPTERS 84 AND 85 BY SECTION XVI
NOTE 1(M).
MANY MACHINE PARTS AND ACCESSORIES FOR THE MACHINES
COVERED BY HTS 8460 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, BUSHINGS, 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 8460. IF THE IMPORTED
MACHINES CONTAIN SPARE PARTS, THESE SPARE PARTS MUST BE
SEPARATELY CLASSIFIED.
(3) SURFACE GRINDERS ARE TO BE CLASSIFIED UNDER HTS 8460.11
OR 8460.19, WHILE CYLINDRICAL GRINDERS ARE PROVIDED FOR
UNDER HTS 8460.21 OR 8460.29. BENCH GRINDERS ARE TO BE
CLASSIFIED UNDER HTS 8460.90. THESE ITEMS ARE ROUTINELY
MISCLASSIFIED ELSEWHERE WITHIN THIS TARIFF HEADING.
(4) 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 8460.
(5) GEAR GRINDING OR GEAR FINISHING MACHINES ARE TO BE
CLASSIFIED UNDER HTS 8461.40. MILLING MACHINES ARE
PROVIDED FOR UNDER HTS 8459. THESE THREE TYPES OF MACHINES
ARE OFTEN MISCLASSIFIED UNDER HTS 8460. CLASSIFICATION UNDER
HTS 8460 REQUIRES REMOVAL OF MATERIALS BY MEANS OF
GRINDING STONES, ABRASIVES, OR POLISHING PRODUCTS.
(6) THE IMPORTED MERCHANDISE IS NOT PROPERLY MARKED WITH
THE COUNTRY OF ORIGIN AT TIME OF IMPORTATION.
(7) HAND OR PEDAL OPERATED GRINDING WHEELS ARE PROVIDED FOR
UNDER HTS 8205, WHILE TOOLS FOR WORKING IN THE HAND,
EITHER PNEUMATIC OR WITH SELF-CONTAINED NON-ELECTRIC
1MOTORS, SHOULD BE CLASSIFIED UNDER HTS 8467. THESE TYPES OF HAND
TOOLS ARE OFTEN MISCLASSIFIED UNDER HTS 8460.
(8) NUMERICALLY CONTROLLED MACHINES ARE CLASSIFIED AS NON-
NUMERICALLY CONTROLLED; USED MACHINES ARE CLASSIFIED AS
NEW; MACHINES VALUED UNDER $3,025 ARE CLASSIFIED AS
MACHINES VALUED OVER $3,025. THESE TYPES OF DISCREPANCIES ARE
EASILY AVOIDED IF THE INVOICE IS SUFFICIENT, AND THE
IMPORTER/BROKER USES REASONABLE CARE WHEN CLASSIFYING THE
IMPORTED MERCHANDISE. (** NOTE: A "COMPUTER NUMERICAL CONTROL",
OR CNC, IS ESSENTIALLY A MICROPROCESSOR BASED CONTROL FOR
CONTROLLING THE COORDINATED MOTIONS AND FUNCTIONS OF A
MACHINE.)
ON FEBRUARY 17, 1999, THE SOUTH FLORIDA STRATEGIC TRADE CENTER
ISSUED INFORMED COMPLIANCE LETTERS TO 431 SIGNIFICANT IMPORTERS
OF DEBURRING MACHINES, SHARPENING MACHINES, GRINDING MACHINES,
HONING AND LAPPING MACHINES, AND/OR POLISHING MACHINES, ALL OF
WHICH ARE CLASSIFIABLE UNDER HTS 8460. 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 8460. FOR FURTHER INFORMATION, PLEASE
CONTACT THE IMPORT SPECIALISTS AT YOUR LOCAL PORT OF ENTRY, OR
INTERNATIONAL TRADE MANAGER TODD OWEN AT THE SOUTH FLORIDA
STRATEGIC TRADE CENTER AT (954) 327-2816.