H314738

HQ H314738 September 17, 2024 OT:RR:CTF:EMAIN H314738 SKK CATEGORY: Classification TARIFF NO.’s: 8479.89.94; 8505.19.00 Center Director Machinery Center of Excellence and Expertise U.S. Customs and Border Protection Laredo Field Office 109 Shiloh Drive, Suite 300 Laredo, TX 78045 ATTN: William Rosado, Import Specialist. RE: Application for Further Review of Protest No. 0417-19-100044; Classification of overband separators and permanent suspension magnets; Magnetic separating machinery for metals. Dear Center Director: This letter pertains to an Application for Further Review (“AFR”) of Protest Number 0417-19-100044, filed on behalf of Bunting Magnetics Co. (“Bunting” or “Protestant”) on May 8, 2019. The Protest and AFR concern U.S. Customs and Border Protection’s (“CBP”) classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) of “overband separators” and “permanent suspension magnets,” also referred to as magnetic separators. Citing to several CBP Form 29 Notices of Action on allegedly similar products, Protestant also submits that the subject merchandise is entitled to “treatment” pursuant to §177.12(c) of Title 19 of the Code of Federal Regulations (19 C.F.R. §177.12(c)). The AFR was forwarded for our consideration. No samples were provided for examination. In the protest submission, counsel for Bunting submitted a request for an oral discussion of the issues germane to this protest. However, in response to outreach on three separate occasions between July 30, 2024 and September 6, 2024, neither counsel nor Bunting confirmed their interest in a discussion or replied to schedule one. FACTS: The articles at issue are described as “overband separators” and “permanent suspension magnets.” Overband seperators The subject overband separators are machines that attract metals from bulk material streams. In use they may be positioned either directly over and perpendicular to a material stream conveyor belt or mounted at the end of the material stream conveyor belt for in-line applications. As a material stream passes near the overband separator, its magnets attract metals from the material stream and its circular conveyor belt moves the metals to a separate discharge area away from the original material stream. The subject overband separators incorporate a circular conveyor belt that runs over a magnet (permanent or electro-magnet) that is mounted in a heavy-duty steel frame. The conveyor belt runs on two crowned pulleys and is driven by an electric or hydraulic motor. 
 
 Electro-Magnet Overband Separator Permanent Magnet Overband Separator Permanent Suspension Magnets The subject permanent suspension magnets are also used to attract metals from material streams. They differ from the subject overband seperators in that they do not incorporate a motorized conveyor system. They hang by chains over conveyor belts and can be suspended either horizontally or inclined over the end of a conveyor. Extracted metal is held against the face of the permanent suspension magnet until it is manually cleared. Permanent suspension magnets are used primarily in aggregate mining (not coal) and recycling (concrete) industries. See below: 
 
 Four entries of the subject merchandise were filed between October 14, 2017 and November 28, 2017. The subject overband separators and all but one permanent suspension magnet were entered under heading 8474, HTSUS, specifically subheading 8474.10.00, HTSUS, which provides for “[M]achines for sorting, screening, separating, washing, crushing, grinding, mixing or kneading earth, stone, ores or other mineral substances, …: parts thereof: Sorting, screening, separating or washing machines.” One permanent suspension magnet was entered under heading 8505, HTSUS, specifically subheading 8505.11.00, HTSUS, which provides for “[E]lectromagnets; permanent magnets and articles intended to become permanent magnets after magnetization: electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Permanent magnets and articles intended to become permanent magnets after magnetization: Of metal.” ISSUE: What is the proper classification of the subject overband separators and permanent suspension magnets under the HTSUS? LAW AND ANALYSIS: As an initial matter, it is noted that this matter is protestable under 19 U.S.C. § 1514(a)(2) as a decision on classification. The Protest was timely filed on May 8, 2019, within 180 days of liquidation, pursuant to 19 U.S.C. § 1514(c)(3). Further review of the Protest is warranted pursuant to 19 C.F.R. § 174.24(c), as it involves matters previously ruled upon by CBP where the Protestant alleges facts or legal arguments that were not considered at the time of the original ruling. Classification Classification of goods under the HTSUS is governed by the General Rules of Interpretation (“GRI”). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied. The 2017 HTSUS headings under consideration are as follows: 8428 Other lifting, handling, loading or unloading machinery (for example, elevators, escalators, conveyors, teleferics). 8474 Machinery for sorting, screening, separating, washing, crushing, grinding, mixing or kneading earth, stone, ores or other mineral substances, in solid (including powder or paste) form; machinery for agglomerating, shaping or molding solid mineral fuels, ceramic paste, unhardened cements, plastering materials or other mineral products in powder or paste form; machines for forming foundry molds of sand; parts thereof. 8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof. 8505 Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof. Note 3 to Section XVI (Chapters 84 and 85), HTSUS, provides: Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. The Harmonized Commodity Description and Coding System Explanatory Notes (“EN’s”) constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the EN’s provide a commentary on the scope of each heading of the Harmonized System and are useful in ascertaining the classification of merchandise under the system. CBP believes the EN’s should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989). The EN to 84.74 provides, in pertinent part: This heading covers: (I) Machinery of a kind used, mainly in the extractive industries, for the treatment (sorting, screening, separating, washing, crushing, grinding, mixing or kneading) of solid mineral products (in general the products of Section V of the Nomenclature) such as earth (including earth colours), clay, stone, ores, mineral fuels, mineral fertilisers, slag cement or concrete…. Certain machines of the kind normally used for the treatment of mineral products can, as a secondary use, also treat non-mineral products (e.g., wood or bone); such machines remain in this heading. However, the heading does not extend to machinery specially designed for carrying out similar operations on non-mineral materia

As an initial matter, it is noted that this matter is protestable under 19 U.S.C. § 1514(a)(2) as a decision on classification. The Protest was timely filed on May 8, 2019, within 180 days of liquidation, pursuant to 19 U.S.C. § 1514(c)(3). Further review of the Protest is warranted pursuant to 19 C.F.R. § 174.24(c), as it involves matters previously ruled upon by CBP where the Protestant alleges facts or legal arguments that were not considered at the time of the original ruling. ClassificationClassification of goods under the HTSUS is governed by the General Rules of Interpretation (“GRI”). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs may then be applied. The 2017 HTSUS headings under consideration are as follows:  8428 Other lifting, handling, loading or unloading machinery (for example, elevators, escalators, conveyors, teleferics).8474 Machinery for sorting, screening, separating, washing, crushing, grinding, mixing or kneading earth, stone, ores or other mineral substances, in solid (including powder or paste) form; machinery for agglomerating, shaping or molding solid mineral fuels, ceramic paste, unhardened cements, plastering materials or other mineral products in powder or paste form; machines for forming foundry molds of sand; parts thereof.8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof.8505 Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof.Note 3 to Section XVI (Chapters 84 and 85), HTS