H323434

HQ H323434 February 28, 2023 OT:RR:CTF:EMAIN H323434 SKK CATEGORY: Classification TARIFF NOs.: 8479.89.94; 8479.90.94; 8483.40.10; 9903.88.01; 9903.88.03 Center Director Machinery Center of Excellence and Expertise U.S. Customs & Border Protection One World Trade Center Suite 50.200 New York, NY 10007 Attn: Marlon Vinueza, Import Specialist; Lily Chow, Supervisory Import Specialist Re: Application for Further Review of Protest No. 4601-20-122338; Classification of vertical and single shaft recycling shredder machines from China; Size reduction machines; granulator machine parts (rotors and screens); Hydraulic couplings Dear Center Director: This is our decision regarding the Application for Further Review (AFR) of Protest No. 4601-20-122338, filed on behalf of Cable Management LLC (Protestant). The Protest and AFR concern the classification of vertical and single shaft shredding machines, hydraulic couplings, and granulator machine parts identified as rotors and screens under the Harmonized Tariff Schedule of the United States (HTSUS), as well as the applicability of Section 301 trade remedies. No samples were provided for examination. The AFR was forwarded to this office for consideration. Attorneys from this office participated in a teleconference with counsel on October 20, 2022. This decision takes into consideration information presented in both Protestant’s written and oral submissions. FACTS: The subject articles are manufactured by Genox Recycling Tech (China) Co., Ltd., and described as a vertical shredder (model Z1500), a single shaft shredder (model V600), single shaft shredder parts (hydraulic couplings), and granulator shredding machine parts (rotors and screens). The subject merchandise was entered on May 20, 2019, and liquidated as entered on April 17, 2020, under heading 8477, HTSUS, specifically subheading 8477.80.00, HTSUS, which provides for “[M]achinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof: other machinery.” The subject rotors, screens and hydraulic couplings were entered under subheading 8477.90.85, HTSUS, which provides for, inter alia, “other” parts. As products of China, the merchandise was subject to additional duties imposed by subheading 9903.88.01, HTSUS. The Genox Z Series Vertical Shredders (including the subject model Z1500) are described on the manufacturer’s website (www.genoxtech.com/en/index.html, site last visited July 8, 2022) as follows: Typical Applications Include: ELV’s (End of Life Vehicles) – Pre-shredded vehicle bodies Scrap Steel – Pre-shredded steel sheets, metal drums etc. Electronic Scrap – WEEE Directive Materials, meatballs. C&D Waste – Concrete, Timber, Plastics etc. Paper Industry Waste – Ragger tails Timber Waste – Pallet wood etc. Z series large vertical shredders are mostly recommended for applications processing pre-shredded metal scrap from twin shaft shredding systems. These machines aggressively size reduce and densify pre-shredded material whilst liberating the various different fractions, allowing for better separations and reduced transportation costs. The breakers in the upper part of the chamber smash the material until it is small enough to enter the gap between the milling rings and chamber liners. When the material enters the second stage the milling rings impact, grind and roll the material into clean, dense nuggets. When milled in to small enough pieces, the balled-up material falls into the lower chamber and is ejected by the discharge paddles. The three above stages create a product which is both clean and of high bulk density suitable for transportation. [emphasis added] The Genox V Series Single Shaft Shredders (including the subject model V600) are described on the manufacturer’s website as follows: V Series Single Shaft Shredders are small - medium size reduction machines suitable for processing a wide range of materials to a uniform particle size. The output products created can often be sold as is, or be sent for further processing through additional equipment (granulators briquetters etc). Throughputs typically range between 300kg/hr – 5,000kg/hr+ depending on the machine model, material type, screen size and application. [emphasis added] Typical Applications Include: Plastics – Mouldings, Purging/Lump, Profiles, Films etc. Timber/Wood – Pallets, Joiners Waste, Green Waste etc. Paper/Cardboard–Confidential Documents, Production Waste, Packaging Materials etc. Copper Cable – Household, Telecoms and Industrial Cables including S.W.A Aluminum – Used Beverage Cans (UBC’s), Swarf, Cables etc. Textiles – Carpet (Rolls & Tiles), Garments etc. Security Destruction – Counterfeit Items, Faulty Goods, Out of Date Stock etc. Foam – Production Waste etc. ISSUES: What is the proper classification of the subject shredders, granulator rotors and screens, and hydraulic couplings? Whether the subject articles are subject to additional duties per subheadings 9903.88.01 and 9903.88.03, HTSUS. LAW AND ANALYSIS: A decision on classification and the rate and amount of duties chargeable is a protestable matter under 19 U.S.C. §1514(a)(2). The subject Protest was timely filed on October 13, 2020, within 180 days of liquidation, pursuant to 19 U.S.C. § 1514(c)(3). Further Review of Protest No. 4601-20-122338 is properly accorded pursuant to 19 CFR § 174.24(b), as the decision against which the protest was filed is alleged to involve matters not previously ruled upon by Customs and Border Protection (CBP) or the customs courts. Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods is determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event 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 2 through 6 will then be applied in order. The following HTSUS (2019) provisions are under consideration: 8477 Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof: 8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: 8483 Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof: Headings 8477, 8479 and 8483 all fall with Section XVI of the Harmonized System (HS). Note 2 to Section XVI provides, in pertinent part: Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: Parts which are goods included in any of the headings of chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate…. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HT

A decision on classification and the rate and amount of duties chargeable is a protestable matter under 19 U.S.C. §1514(a)(2). The subject Protest was timely filed on October 13, 2020, within 180 days of liquidation, pursuant to 19 U.S.C. § 1514(c)(3). Further Review of Protest No. 4601-20-122338 is properly accorded pursuant to 19 CFR § 174.24(b), as the decision against which the protest was filed is alleged to involve matters not previously ruled upon by Customs and Border Protection (CBP) or the customs courts. Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods is determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event 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 2 through 6 will then be applied in order. The following HTSUS (2019) provisions are under consideration:8477 Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter; parts thereof: 8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof:8483 Transmission shafts (including camshafts and crankshafts) and cranks; bearing housings, housed bearings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints); parts thereof: Headings 8477, 8479 and 8483 all fall with Section XVI of the Harmonized System (HS). Note 2 to Section XVI provides, in pertinent part:Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484