HQ 960753

October 9, 1998


CLA-2 RR:CR:GC 960753 HMC

CATEGORY: Classification

TARIFF NO.: 8464.20.50

Port Director of Customs
40 S. Gay Street
Baltimore, MD 21202

RE: Protest 1303-97-100277; Automated Finishing Line for Brake
Blocks; Subheadings 8464.10.00 and 8479.89.95; Section XVI, Note
4; General Explanatory Note VII to Section XVI; Other Grinding or
Polishing Machines; Functional Unit

Dear Port Director:

This is our decision on Protest 1303-97-100277, filed
against your classification of an automated finishing line for
brake blocks ("finishing line"). The entries under protest were
liquidated on April 18, 1997, and this protest timely filed on
June 5, 1997.

FACTS:

The merchandise under protest is an automated finishing line
for brake blocks made of various components and machines, as
follows:

1. Stack loading device for slabs
2. Gang slitting machine
3. Turnover unit
4. Thrufeed internal radius grinding machine
5. Internal radius cleaning station
6. Ultrasonic test station (made in the United States and
not part of the protest)
7. External radius grinding machine
8. External radius cleaning station
9. Short unloading rails
10. Electrical control cabinet
11. Interlocked perimeter fence

The finishing line is designed to process 36" slabs down to
individual pieces by sawing and grinding to specific dimensions.
The finishing line cannot process 36" slabs and they are sawed by
the gang slitting machine into five pieces each 7" wide. The
slabs are made of synthetic or naturally occurring raw materials,
including fiber glass, phenolic resins and natural graphite, that
have been compounded, heated and pressed into the form of the
slab.

The 7" blocks go through two grinding operations. The
thrufeed internal grinding machine removes approximately 15
thousandth of an inch from the inside while the external radius
grinding machine removes approximately 50 to 60 thousandth of an
inch of material from the outside. The inside machine uses a
sanding belt and the outside machine operates with a diamond
grinding wheel. The finishing line uses conveyor mechanisms to
transfer the slabs and the blocks to and from the various
machines. After grinding the block is returned to the conveyor,
which is then signaled to index the next brake block into the
grinding position. Ground brake blocks are conveyed through the
machine to the ultrasonic test station. A separate conveyor is
used to transport blocks from the ultrasonic test machine to the
outside radius grinding machine.

The merchandise was entered under a provision for sawing
machines in subheading 8464.10.00 of the Harmonized Tariff
Schedule of the United States (HTSUS). However, the entries were
liquidated under subheading 8479, HTSUS, as other machines and
mechanical appliances having individual functions, not specified
or included elsewhere in this chapter.

The 1997 provisions under consideration are as follows:

8464 Machine tools for working stone, ceramics,
concrete, asbestos-cement or like mineral
materials or for cold working glass:
8464.10.00 Sawing machines...Free

8464.20 Grinding or polishing machines:
8464.20.50 Other...2.4%

* * * *

8479 Machines and mechanical appliances having
individual functions, not specified or
included elsewhere in this chapter; parts
thereof:
Other machines and mechanical
appliances:
8479.89 Other:
Other:
8479.89.95 Other...3%


ISSUE:

Whether the finishing line is a functional unit classifiable
as other grinding or polishing machines under subheading
8464.20.50, HTSUS, as sawing machines under subheading
8464.10.00, HTSUS or under subheading 8479.89.95, HTSUS, as other
machines and mechanical appliances, not specified or included
elsewhere in Chapter 84.


LAW AND ANALYSIS:

Merchandise is classifiable under the HTSUS in accordance
with the General Rules of Interpretation (GRIs). GRI 1 states in
part that for legal purposes, classification shall be determined
according to the terms of the headings and any relative section
or chapter notes, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6. GRI 6 states
that the classification of goods in the subheadings of a heading
shall be determined according to the terms of those subheadings
and any related subheading notes and, mutatis mutandis, to the
above rules, on the understanding that only subheadings at the
same level are comparable. For the purposes of this rule, the
relative section, chapter and subchapter notes also apply, unless
the context otherwise requires.

Section XVI, Note 4, HTSUS, provides as follows:

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 together 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.

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 thus useful in ascertaining the
classification of merchandise under the System. Customs believes
the EN's should always be consulted. See T.D. 89-80, 54 Fed.
Reg. 35127, 35128 (Aug. 23, 1989).

General EN (VII) to Section XVI, HTSUS, at page 1227, states
that

This Note applies when a machine (including a
combination of machines) consists of separate
components which are intended to contribute
together to a clearly defined function
covered by one of the headings in Chapter 84
or, more frequently, Chapter 85. The whole
then falls to be classified in the heading
appropriate to that function, whether the
various components (for convenience or other
reasons) remain separate or are
interconnected by piping (carrying air,
compressed gas, oil, etc.), by devices used
to transmit power, by electric cables or by
other devices.

For the purposes of this Note, the
expression "intended to contribute together
to a clearly defined function" covers only
machines and combinations of machines
essential to the performance of the function
specific to the functional unit as a whole,
and thus excludes machines or appliances
fulfilling auxiliary functions and which do
not contribute to the function of the whole.

Protestant contends that the finishing line is a functional
unit, classifiable under subheading 8464.10.00, HTSUS, as sawing
machines. According to Protestant, the main function of the
merchandise is to saw the 36" slabs. We find, in this instance,
that the merchandise is a functional unit because it is a
combination of machines that are intended to contribute together
to a clearly defined function described by heading 8464, HTSUS.
However, we disagree with Protestant's contention that the
finishing line is classifiable under subheading 8464.10.00,
HTSUS. We find instead that the grinding operation is the
clearly defined function performed by the merchandise. The
finishing line is a combination of machines used to produce brake
blocks by sawing and grinding. Sawing is essential to produce
the desired blocks from large slabs that the finishing line
cannot process. However, the evidence provided shows that the
grinding operation is the most critical process because of the
tight tolerances required to properly install the brake block
between the brake assembly and the hub. Therefore, the finishing
line is classifiable by subheading 8464.20.50, HTSUS. Since the
finishing line is classified in heading 8464, HTSUS, it is
precluded from classification in heading 8479, HTSUS, which
provides for machines and mechanical appliances having individual
functions, not specified or included elsewhere in this chapter.
See also EN 84.79, at page 1422. We note however, that the fence
is not essential to the grinding operation of the break blocks
and is classifiable separately.


HOLDING:

Under the authority of GRI 1, the automated finishing line
for brake blocks is classifiable under subheading 8464.20.50,
HTSUS, as "Machine tools for working stone, ceramics, concrete,
asbestos-cement or like mineral materials or for cold working
glass: Grinding or polishing machines: Other. The 1997 rate of
duty is 2.4%.

This protest should be DENIED, except to the extent
reclassification of the merchandise as indicated above results in
a partial allowance (i.e. for the automated finishing line at
2.4% ad valorem instead of 3% ad valorem as liquidated, and if
the fencing is dutiable at less than 3% ad valorem, at the
appropriate rate). In accordance with Section 3A(11)(b) of
Customs Directive 099 3550-065, dated August 4, 1993, Subject:
Revised Protest Directive, you should mail this decision,
together with the Customs Form 19, to the Protestant no later
than 60 days from the date of this letter. Any reliquidation of
the entry or entries in accordance with the decision must be
accomplished prior to mailing the decision.

Sixty days from the date of the decision, the Office of
Regulations and Rulings will take steps to make the decision
available to Customs personnel via the Customs Rulings Module in
ACS and to the public via the Diskette Subscription Service, the
Freedom of Information Act and other public access channels.

Sincerely,


John Durant, Director
Commercial Rulings Division