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NY K82766

February 20, 2004
CLA-2-84:RR:NC:1:103 K82766


TARIFF NO.: 8422.30.9190; 9802.00.80

Mr. Joseph Cardinali
Cardinal Engineering P.C.
54 North Slope
Clinton, NJ 08809

RE: The tariff classification of cup filling system from the Netherlands

Dear Mr. Cardinali:

In your letter dated January 22, 2004 you requested a tariff classification ruling.

The cup filling system is used to automatically place individual cookies into paper cups. The system aligns and directs the cookies into individual lanes and rows. Cookies are then collected (a row at a time) and stacked into paper cups. The filled cups then proceed to an existing wrapping machine where the cups are packaged into the final retail container. The system also includes an overhead transport which is an automatic buffer storage conveyor. This conveyor is used solely for this particular filling system. It stores the cookies in the event of malfunction of downstream equipment. When malfunction has been corrected, the overhead transport will reverse to add the stored product to the cup filling system.

You indicate in your letter that the paper cup de-nester is manufactured in the United Kingdom and shipped to the Netherlands for inclusion and testing. The de-nester will be shipped to the United States in the same shipment as the rest of the cup filling system.

In your supplemental fax dated February 18, 2004, you state that one component of the system, i.e. the cup outfeed conveyor, will be purchased locally. In addition, the optional discharge conveyor is not included in this particular system. The language of General Rule of Interpretation (“GRI”) 2(a), Harmonized Tariff Schedule of the United States (HTS), states, in part, that “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article.”. Note 4 to Section XVI states that where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function. In this office’s opinion, the incomplete system, at importation, does have the essential character of a complete cup filling system. Thus, the cup filling system, would be classifiable as a functional unit, imported incomplete.

In accordance with GRI 2(a) and Note 4 to Section XVI, the applicable subheading for the cup filling system, imported in a single shipment and forming a functional unit will be 8422.30.9190, HTS, which provides for machinery for filling, closing, sealing, capsuling or labeling boxes, bags, or similar containers: other. The rate of duty will be free.

In your letter, you state that the control system is of American origin. Components of American origin which are sent to the Netherlands to be assembled into the cup filling system may be eligible for classification in subheading 9802.00.80, HTS, which provides for articles, except goods of heading 9802.00.90, HTS, and goods imported under provisions of subchapter XIX of this chapter and goods imported under provisions of subchapter XX, assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting.

All three requirements of subheading 9802.00.80, HTS, must be satisfied before a component may receive a duty allowance. An article entered under subheading 9802.00.80, HTS, is subject to duty upon the full value of the imported assembled article less the cost or value of such U.S. components, upon compliance with the documentary requirements of section 10.24 of the Customs Regulations (19 CFR 10.24).

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Robert Losche at 646-733-3011.


Robert B. Swierupski

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