WEBVTT 00:00:02.000 --> 00:00:07.900 >>Good afternoon ladies and gentlemen 00:00:07.900 --> 00:00:07.901 my name 00:00:07.901 --> 00:00:10.146 is Lynn Banks. Thank you for joining us today 00:00:10.146 --> 00:00:10.147 for the note to 00:00:10.147 --> 00:00:29.046 subsection a to Section 16 machinery and 00:00:29.046 --> 00:00:29.047 mechanical appliances 00:00:29.047 --> 00:00:29.049 webinar. Today's webinar is part of the national commodities 00:00:29.049 --> 00:00:29.052 specialist division office of training 2023 education commodity 00:00:29.052 --> 00:00:47.775 specific webinar series. Today's webinar is expected to be one hour. 00:00:47.775 --> 00:00:47.776 00:00:47.776 --> 00:00:47.778 We have a few housekeeping items, everyone will be kept on mute 00:00:47.778 --> 00:00:47.810 during the presentation so we can keep the line clear of background 00:00:47.810 --> 00:00:47.812 noise. If you have any questions or comments you can either type them 00:00:47.812 --> 00:00:47.815 into the chat box during the presentation. We will be answering as 00:00:47.815 --> 00:00:58.822 many questions as we can from the chat 00:00:58.822 --> 00:00:58.823 box at the end of the 00:00:58.823 --> 00:00:58.825 presentation. Today's presenter is national import specialist Sandra 00:00:58.825 --> 00:01:02.769 Martinez Ms. Martinez over to you. 00:01:02.769 --> 00:01:10.171 >> Good afternoon everyone. As 00:01:10.171 --> 00:01:10.172 Lynn mentioned I am Sandra 00:01:10.172 --> 00:01:13.801 Martinez national import specialist. Many of you are aware 00:01:13.801 --> 00:01:13.802 I am 00:01:13.802 --> 00:01:17.215 assigned to the machinery and metals branch 00:01:17.215 --> 00:01:20.848 I oversee a few 00:01:20.848 --> 00:01:20.850 Chapter 84 headings but to those of you that are not the headings I 00:01:20.850 --> 00:01:25.003 am responsible for are the pump headings, 00:01:25.003 --> 00:01:33.772 84th dash 13 and 84– 14 00:01:33.772 --> 00:01:39.472 bearings and 8482 power transmitting 00:01:39.472 --> 00:01:39.473 machines of 8483, and cooling 00:01:39.473 --> 00:01:47.746 machines of headings 8415 and 8415. Now 00:01:47.746 --> 00:01:47.747 most of these items are 00:01:47.747 --> 00:01:54.793 simple machines, but even so, they can 00:01:54.793 --> 00:01:54.794 involve complicated 00:01:54.794 --> 00:01:57.726 classification questions. In fact one type of question that comes up 00:01:57.726 --> 00:01:57.727 00:01:57.727 --> 00:02:02.707 is whether these items are classified as 00:02:02.707 --> 00:02:02.708 part of machines they are 00:02:02.708 --> 00:02:07.701 used with. Especially when they are patented 00:02:07.701 --> 00:02:07.702 or dedicated for 00:02:07.702 --> 00:02:11.297 particular use. Just the other day, I was asked about 00:02:11.297 --> 00:02:11.298 the 00:02:11.298 --> 00:02:16.123 classification of a gas valve that was 00:02:16.123 --> 00:02:16.124 specifically designed to be 00:02:16.124 --> 00:02:23.200 used in boiler systems. Chapter 84 00:02:23.200 --> 00:02:23.201 headings fall within the scope of 00:02:23.201 --> 00:02:26.465 Section 16 and no to Section 16 is 00:02:26.465 --> 00:02:41.790 something we have to consider as a 00:02:41.790 --> 00:02:41.792 legal note. Note to is Section 16 does have three subparts that are 00:02:41.792 --> 00:02:41.795 applied in order. Meaning it has a, B and C. Today we will only be 00:02:41.795 --> 00:02:46.601 looking into part a because of the note 00:02:46.601 --> 00:02:46.602 in its entirety with quite a 00:02:46.602 --> 00:02:48.659 bit of time. But perhaps we will be 00:02:48.659 --> 00:02:59.913 looking at parts be in future 00:02:59.913 --> 00:02:59.915 webinars. 00:02:59.915 --> 00:02:59.918 I also want to mention we will only be looking at this note 00:02:59.918 --> 00:03:06.528 from a Chapter 84 perspective. Most of 00:03:06.528 --> 00:03:06.529 Chapter 85 concerns 00:03:06.529 --> 00:03:09.982 electronics and electrical equipment which is handled by another team 00:03:09.982 --> 00:03:09.983 00:03:09.983 --> 00:03:33.220 and another SC SD branch. 00:03:33.220 --> 00:03:33.222 So here are CBP and OT's mission statement. They explain our 00:03:33.222 --> 00:03:33.225 commitment toward legitimate trade and creating an equal playing 00:03:33.225 --> 00:03:33.229 field for companies. CD CBP is responsible for obtaining 00:03:33.229 --> 00:03:42.142 classification in the duties of imported goods. 00:03:42.142 --> 00:03:42.143 And we assist in this 00:03:42.143 --> 00:03:42.145 process by presenting webinars on classification topics. And by 00:03:42.145 --> 00:03:51.262 issuing binding rulings. It is our 00:03:51.262 --> 00:03:51.263 contribution to employ reasonable 00:03:51.263 --> 00:04:05.010 care strategies while conducting business with CBP. 00:04:05.010 --> 00:04:05.011 The next two 00:04:05.011 --> 00:04:05.013 slides cover disclaimers and the first disclaimer is saying the 00:04:05.013 --> 00:04:05.016 images used in the webinar today are either public domain, or 00:04:05.016 --> 00:04:07.942 obtained through the appropriate 00:04:07.942 --> 00:04:13.772 copyright licenses. They are only 00:04:13.772 --> 00:04:33.911 being used for providing context to material that will be presented. 00:04:33.911 --> 00:04:33.912 00:04:33.912 --> 00:04:33.914 Here is our second disclaimer. It is reminding us that today's 00:04:33.914 --> 00:04:33.917 information is for guidance only. The information is not intended to 00:04:33.917 --> 00:04:33.921 address specific situations and it always prudent to reach out to a 00:04:33.921 --> 00:04:46.286 customer a broker, an attorney or a trade 00:04:46.286 --> 00:04:46.287 consultant. Classification 00:04:46.287 --> 00:04:46.289 can be a complicated process. While webinars like this one are 00:04:46.289 --> 00:05:02.116 helpful, we don't recommend just relying on these presentations. 00:05:02.116 --> 00:05:02.117 In 00:05:02.117 --> 00:05:02.119 fact if you have a specific question about a product and a specific 00:05:02.119 --> 00:05:02.122 shipment we recommend submitting a request for binding ruling. That 00:05:02.122 --> 00:05:06.402 request can be mailed in but submitting 00:05:06.402 --> 00:05:06.403 the request electronically 00:05:06.403 --> 00:05:17.069 streamlines the process. Here is the link 00:05:17.069 --> 00:05:17.070 to submit a request. The 00:05:17.070 --> 00:05:30.692 process is free, and from what I understand, the template is easy to 00:05:30.692 --> 00:05:30.693 00:05:30.693 --> 00:05:30.695 navigate through and if it concerns a topic we can rule long, we will 00:05:30.695 --> 00:05:30.698 provide some sort of response whether it be a binding ruling, or a 00:05:30.698 --> 00:05:33.751 letter asking for more information within 20 days. 00:05:33.751 --> 00:05:33.752 If the request is 00:05:33.752 --> 00:05:47.700 from a designated trade otherwise 30 00:05:47.700 --> 00:05:47.701 days. Just a friendly reminder 00:05:47.701 --> 00:05:47.723 it is always best to submit as much information as possible and if 00:05:47.723 --> 00:05:47.725 you are unsure of what that means is you are going through the 00:05:47.725 --> 00:05:58.717 information you can ask yourself some 00:05:58.717 --> 00:05:58.718 important questions. For 00:05:58.718 --> 00:05:58.720 instance, what is the product, how does it work, where is it used, 00:05:58.720 --> 00:06:06.100 what is its material composition. Or 00:06:06.100 --> 00:06:06.101 machinery I appreciate technical 00:06:06.101 --> 00:06:08.006 drawings labeled with name and technical components. 00:06:08.006 --> 00:06:08.007 I also like to 00:06:08.007 --> 00:06:15.925 see step-by-step products and functions 00:06:15.925 --> 00:06:15.926 and information concerning 00:06:15.926 --> 00:06:22.957 how the item is powered. It is about 00:06:22.957 --> 00:06:22.958 getting the most relevant 00:06:22.958 --> 00:06:36.039 information so we can arrive at classification. 00:06:36.039 --> 00:06:36.040 Let's get into our 00:06:36.040 --> 00:06:37.072 classification topic. As we are aware the classification of goods 00:06:37.072 --> 00:06:43.954 are 00:06:43.954 --> 00:06:43.956 headed by the GRI's. All classification journeys begin with 00:06:43.956 --> 00:06:59.483 application of GRI one that states for 00:06:59.483 --> 00:06:59.484 legal purposes, 00:06:59.484 --> 00:06:59.486 classifications shall be determined according to terms of headings 00:06:59.486 --> 00:06:59.489 and any relative section or chapter notes. Therefore and 00:06:59.489 --> 00:07:09.261 understanding with GRI one as supposed to 00:07:09.261 --> 00:07:09.262 view we would applied no to 00:07:09.262 --> 00:07:13.880 to Section 16 and classify parts and machines. As it is a legal note. 00:07:13.880 --> 00:07:13.881 00:07:13.881 --> 00:07:17.715 The purpose of today's webinar is to provide a more in-depth 00:07:17.715 --> 00:07:17.716 00:07:17.716 --> 00:07:26.457 viewpoint into note Section 16 but not to 00:07:26.457 --> 00:07:26.458 worry we will discuss how 00:07:26.458 --> 00:07:26.491 the note should be applied by looking at its different layers and at 00:07:26.491 --> 00:07:36.956 definitions. 00:07:36.956 --> 00:07:36.958 So let's begin by understanding the intro to the note that 00:07:36.958 --> 00:07:49.526 explains subject to note one to the section, note one to 00:07:49.526 --> 00:07:49.527 Chapter 84 00:07:49.527 --> 00:07:49.529 and to note one to Chapter 85, parts of machines not being parts of 00:07:49.529 --> 00:07:56.571 the articles of heading 8484, 8544, 8545, 00:07:56.571 --> 00:07:56.572 8546, or 8547 are to be 00:07:56.572 --> 00:08:16.227 classified according to the following rules. 00:08:16.227 --> 00:08:16.229 So what the note 1st tells us is before you can consider 00:08:16.229 --> 00:08:16.232 applying sections of note to meaning it is a B or C you have to check 00:08:16.232 --> 00:08:18.938 note one to Section 16 and then note one to 00:08:18.938 --> 00:08:18.939 Chapter 84 to see if the 00:08:18.939 --> 00:08:28.620 product is excluded from the section and 00:08:28.620 --> 00:08:35.657 then more specifically, 00:08:35.657 --> 00:08:39.803 Chapter 84. Here we have no one Chapter 16 00:08:39.803 --> 00:08:39.804 Section 16 it notifies the 00:08:39.804 --> 00:08:45.315 types of products it excluded from this 00:08:45.315 --> 00:08:45.316 section a through Q. For 00:08:45.316 --> 00:08:56.648 example, mama one excludes drill pipe 00:08:56.648 --> 00:08:56.649 from the section. I remember a 00:08:56.649 --> 00:08:56.679 few years ago the NIS, who handles headings 7304 and myself found 00:08:56.679 --> 00:08:58.177 ourselves discussing a request for drill 00:08:58.177 --> 00:09:03.863 pipes used in an oil 00:09:03.863 --> 00:09:15.222 recovery manifold. The pipes were intended to be 00:09:15.222 --> 00:09:15.223 joined but at 00:09:15.223 --> 00:09:15.255 importation would not be joined to the bells. Because we consider 00:09:15.255 --> 00:09:38.465 items in the condition they are imported, we were looking at 00:09:38.465 --> 00:09:38.466 tubes or 00:09:38.466 --> 00:09:38.468 pipes of heading 7304. They are simply conduits not parts of a valve 00:09:38.468 --> 00:09:38.471 as suggested. Consequently, we excluded these from this section based 00:09:38.471 --> 00:09:38.475 on note 1H. 00:09:38.475 --> 00:09:38.496 By the way, I realize this doesn't appear as clear as possible. 00:09:38.496 --> 00:09:45.530 This is because of its length. As we 00:09:45.530 --> 00:09:45.531 refer to specific notes of this 00:09:45.531 --> 00:10:00.651 section, they will be highlighted throughout the presentation. 00:10:00.651 --> 00:10:00.652 00:10:00.652 --> 00:10:00.654 Okay, and continuing on our discussion of note to you have to 00:10:00.654 --> 00:10:11.643 remember after an item makes the cut of note one 00:10:11.643 --> 00:10:11.644 Section 16, we would 00:10:11.644 --> 00:10:11.646 then consider note one to Chapter 84. You can see items such as 00:10:11.646 --> 00:10:11.674 vacuum cleaners and radiators of motor vehicles are excluded from the 00:10:11.674 --> 00:10:18.892 chapter. For these listed items, you 00:10:18.892 --> 00:10:18.893 wouldn't proceed any further 00:10:18.893 --> 00:10:24.767 into Chapter 84 when considering these items. 00:10:24.767 --> 00:10:24.768 But what about 00:10:24.768 --> 00:10:29.744 something you know is provided for in 00:10:29.744 --> 00:10:29.745 Chapter 84. Like pumps. Let's 00:10:29.745 --> 00:10:38.176 say pumps are completely or primarily 00:10:38.176 --> 00:10:38.177 constructed of ceramic. I am 00:10:38.177 --> 00:10:44.212 not aware of a pump that is 100% ceramic. 00:10:44.212 --> 00:10:44.213 That would probably make 00:10:44.213 --> 00:10:47.140 the pump too brittle to operate. There are hybrid style pumps 00:10:47.140 --> 00:10:47.141 that 00:10:47.141 --> 00:11:05.908 utilize components of ceramic. This is 00:11:05.908 --> 00:11:05.909 something you think about when 00:11:05.909 --> 00:11:05.911 applying this note which reminds us we have to consider material 00:11:05.911 --> 00:11:05.914 composition of articles because often, section and chapter notes have 00:11:05.914 --> 00:11:05.918 exclusion of items for a certain material composition. 00:11:05.918 --> 00:11:14.001 And Chapter 84 has an exclusion for articles 00:11:14.001 --> 00:11:14.002 that are primarily 00:11:14.002 --> 00:11:14.004 of ceramic material. So what I am getting at is even though the pumps 00:11:14.004 --> 00:11:18.427 have a mechanical aspect, the chapter no 00:11:18.427 --> 00:11:18.428 excludes ceramic pumps from 00:11:18.428 --> 00:11:21.390 the chapter. Therefore they need to be 00:11:21.390 --> 00:11:30.679 considered elsewhere. 00:11:30.679 --> 00:11:44.859 Okay, so back to her note. Next we would note our note 00:11:44.859 --> 00:11:44.860 *we not 00:11:44.860 --> 00:11:44.862 consider parts of heading in the parentheses. Listed in the 00:11:44.862 --> 00:11:48.789 parentheses are heading 8484, 8544, 8545, 00:11:48.789 --> 00:11:55.544 8546, or 8547. 00:11:55.544 --> 00:12:14.097 Now, why do you think these headings 00:12:14.097 --> 00:12:14.098 would be mentioned in the 00:12:14.098 --> 00:12:14.100 intro? Well, here's looking at heading 8484 which provides for 00:12:14.100 --> 00:12:14.103 certain gaskets, sense of gaskets, and mechanical seals. While I did 00:12:14.103 --> 00:12:18.397 say this webinar would focus on Chapter 00:12:18.397 --> 00:12:18.398 84, I did peruse the 00:12:18.398 --> 00:12:23.707 explanatory notes of Chapter 85 headings 00:12:23.707 --> 00:12:23.708 and notice these headings to 00:12:23.708 --> 00:12:46.599 require certain considerations. It makes 00:12:46.599 --> 00:12:46.600 sense because 8544 provides 00:12:46.600 --> 00:12:46.602 for insulator and fiber-optic cables, 8545 provides for carbon 00:12:46.602 --> 00:12:46.605 electrodes, bushes, and lamp carbons; 8546 provides for electrical 00:12:46.605 --> 00:12:48.648 insulators; and 8547 provides for insulator equipment. 00:12:48.648 --> 00:12:48.649 So what I 00:12:48.649 --> 00:12:52.438 gathered, these headings have their 00:12:52.438 --> 00:13:11.185 nuances. And this is something 00:13:11.185 --> 00:13:11.187 you have to keep in mind. Because like the gaskets, you have to 00:13:11.187 --> 00:13:11.190 consider other classifications such as rules for sets, and think 00:13:11.190 --> 00:13:11.214 about the material composition. The same would probably be for this 00:13:11.214 --> 00:13:17.221 Chapter 85 headings. 00:13:17.221 --> 00:13:17.223 Something to keep in mind, when you're thinking about the 00:13:17.223 --> 00:13:25.814 Chapter 85 headings, if you have an item 00:13:25.814 --> 00:13:25.815 that is strictly mechanical 00:13:25.815 --> 00:13:25.817 the Chapter 85 headings listed in parentheses probably would need to 00:13:25.817 --> 00:13:35.476 be considered. 00:13:35.476 --> 00:13:35.478 All right, once we have determined the item is not excluded by 00:13:35.478 --> 00:13:45.423 application of mentioned notes, or listed 00:13:45.423 --> 00:13:45.424 in the parentheses, we must 00:13:45.424 --> 00:13:45.453 now consider when through the end unit or the system, the item is 00:13:45.453 --> 00:13:55.413 used with is considered a machine. 00:13:55.413 --> 00:13:55.455 While this seems logical, the section length sage tells us it 00:13:55.455 --> 00:13:57.141 provides for machinery and mechanical appliances. 00:13:57.141 --> 00:13:57.142 But we know the 00:13:57.142 --> 00:14:02.081 titles of sections and chapters are 00:14:02.081 --> 00:14:02.082 provided for ease of reference 00:14:02.082 --> 00:14:06.397 only and they have no legal significance. 00:14:06.397 --> 00:14:11.723 So it leaves us with what 00:14:11.723 --> 00:14:32.577 does machinery and mechanical appliances mean? 00:14:32.577 --> 00:14:32.578 00:14:32.578 --> 00:14:32.580 Luckily, there is a section note that gives us help with this 00:14:32.580 --> 00:14:32.583 question as it tells us what is considered a machine for the purposes 00:14:32.583 --> 00:14:32.587 of the section. It says the term machine means any machine, 00:14:32.587 --> 00:14:34.792 machinery, plant, equipment, apparatus, or any appliance. 00:14:34.792 --> 00:14:48.872 But for me, 00:14:48.872 --> 00:14:48.874 the explanation is more of what the term machines referred to and it 00:14:48.874 --> 00:14:48.907 seems a bit general. How do you know the end item is meant to be 00:14:48.907 --> 00:14:51.285 considered any of the items listed for the term machine? 00:14:51.285 --> 00:14:51.286 00:14:51.286 --> 00:15:00.575 Unfortunately, there is not a 00:15:00.575 --> 00:15:00.576 definition of machinery found in 00:15:00.576 --> 00:15:06.435 the HTS. But courts have said when a tariff term is not 00:15:06.435 --> 00:15:06.436 defined by 00:15:06.436 --> 00:15:06.438 the HCF or legislative history the correct meaning is its common 00:15:06.438 --> 00:15:16.924 meeting. To ascertain the common meaning 00:15:16.924 --> 00:15:16.925 of a turn we consult 00:15:16.925 --> 00:15:16.927 dictionaries, scientific authorities, and other reliable information 00:15:16.927 --> 00:15:23.972 sources. Here we have headquarters ruling 00:15:23.972 --> 00:15:41.706 aged 033596 which used a 00:15:41.706 --> 00:15:41.737 Webster dictionary to define the term machines. 00:15:41.737 --> 00:15:41.739 This definition determines machines are and assemblage of parts 00:15:41.739 --> 00:15:41.742 that transmit forces, motion, and energy one to another in a 00:15:41.742 --> 00:15:49.446 predetermined manner. Or an instrument as 00:15:49.446 --> 00:15:49.447 a lever designed to 00:15:49.447 --> 00:15:57.349 transmit or modify the application of power, force, or motion. 00:15:57.349 --> 00:15:57.350 00:15:57.350 --> 00:15:57.352 And so we have to be cognizant of these definitions because 00:15:57.352 --> 00:16:05.412 let's say we have something that transmits 00:16:05.412 --> 00:16:05.413 cooling energy like an ice 00:16:05.413 --> 00:16:14.085 chest. Well, it is true energy is conducted between the ice water 00:16:14.085 --> 00:16:14.086 but 00:16:14.086 --> 00:16:14.088 a typical ice chest itself does not transfer energy using moving 00:16:14.088 --> 00:16:17.293 parts or an instrument. It is not until 00:16:17.293 --> 00:16:17.294 the ice is added is that 00:16:17.294 --> 00:16:56.671 cooling process began. 00:16:56.671 --> 00:16:56.673 In considering such, it is no surprise the explanatory notes to 00:16:56.673 --> 00:16:56.676 heading 8418 which provides for refrigerating and freezing equipment 00:16:56.676 --> 00:16:56.701 excludes ice chests for this heading. These types of tests are 00:16:56.701 --> 00:16:56.703 provided for in heading 9403. 00:16:56.703 --> 00:16:56.706 Another example is a showerhead without a water control valve. 00:16:56.706 --> 00:16:56.710 Without the valve there is no mechanical component that starts or 00:16:56.710 --> 00:16:56.715 stops the flow of water. You have something that is simply a conduit. 00:16:56.715 --> 00:16:59.230 Consequently, showerheads without valves 00:16:59.230 --> 00:16:59.231 are classified by the 00:16:59.231 --> 00:17:08.175 material composition. 00:17:08.175 --> 00:17:20.598 The note also mentions the item has to be a part. 00:17:20.598 --> 00:17:20.599 Just like the 00:17:20.599 --> 00:17:20.601 term machine the term part is not defined in the HTS. But the courts 00:17:20.601 --> 00:17:24.024 have given us to tests to consider when 00:17:24.024 --> 00:17:27.122 the root determining 00:17:27.122 --> 00:17:44.535 something would be considered a part. 00:17:44.535 --> 00:17:44.537 The first test comes from the Willoughby court case. It asks us 00:17:44.537 --> 00:17:44.540 to consider whether the item is a integral, constituent or component 00:17:44.540 --> 00:17:44.544 part without which the article to which it is joined to could not 00:17:44.544 --> 00:17:46.396 function without. Let's think about a 00:17:46.396 --> 00:17:55.371 cabinet. Specifically, a 00:17:55.371 --> 00:17:55.373 cabinet of a refrigerator. You need the cabinet because it is where 00:17:55.373 --> 00:18:05.186 the cooling components are installed. 00:18:05.186 --> 00:18:05.187 Meaning the evaporator, the 00:18:05.187 --> 00:18:05.189 condenser and the compressor. Equally important, it holds food and 00:18:05.189 --> 00:18:10.651 drink that will be refrigerated. Clearly, 00:18:10.651 --> 00:18:10.652 the cabinet is needed 00:18:10.652 --> 00:18:15.978 otherwise there would not be a functional refrigerator. 00:18:15.978 --> 00:18:15.979 Therefore 00:18:15.979 --> 00:18:21.308 this cabinet that we are talking about would meet the first test. 00:18:21.308 --> 00:18:21.309 00:18:21.309 --> 00:18:26.305 The second test is brought to us by the Pompeo court case. 00:18:26.305 --> 00:18:26.306 It 00:18:26.306 --> 00:18:41.978 asks us to consider whether the item is dedicated exclusively 00:18:41.978 --> 00:18:41.979 for the 00:18:41.979 --> 00:18:42.008 use of the end item. Again, let's think about our cabinet. Could the 00:18:42.008 --> 00:18:42.010 cabinet be used with anything else? Logically, no. Because well it 00:18:42.010 --> 00:18:53.853 can store articles that are not intended to be refrigerated 00:18:53.853 --> 00:18:53.854 or 00:18:53.854 --> 00:18:53.856 cooled, it is probably insulated and has compartment's for the 00:18:53.856 --> 00:18:53.859 cooling components. It probably accommodates measured shelves and has 00:18:53.859 --> 00:18:57.295 certain connections at the front to 00:18:57.295 --> 00:18:57.296 interconnect with particular 00:18:57.296 --> 00:19:02.488 doors. So if that was the case based on 00:19:02.488 --> 00:19:02.489 these features, we could say 00:19:02.489 --> 00:19:07.641 it is dedicated to be used with a 00:19:07.641 --> 00:19:07.642 refrigerator and therefore the 00:19:07.642 --> 00:19:17.101 insulated cabinet meets the second test. 00:19:17.101 --> 00:19:17.103 As the cabinet meets both tests we can comfortably say the 00:19:17.103 --> 00:19:35.335 insulated cabinet is a part of a refrigerator. 00:19:35.335 --> 00:19:35.336 00:19:35.336 --> 00:19:35.338 Now that we understand the intro to note two, what does the 00:19:35.338 --> 00:19:35.367 note ask us to do? Well, part a says parts which are goods included 00:19:35.367 --> 00:19:43.601 in any of the headings of Chapter 84 or 00:19:43.601 --> 00:19:43.602 85 other than headings 8409, 00:19:43.602 --> 00:20:07.149 8431, 8448, 8466, 8473, 8487, 8503, 8522, 00:20:07.149 --> 00:20:07.150 8529, 8538, and 8548 are in 00:20:07.150 --> 00:20:07.152 all cases to be classified in their respective headings. 00:20:07.152 --> 00:20:13.868 Basically, it is telling us that 00:20:13.868 --> 00:20:13.869 there is a heading that 00:20:13.869 --> 00:20:13.871 specifically provides for the item, it should be classified in the 00:20:13.871 --> 00:20:21.786 heading provided. Provided it is not 00:20:21.786 --> 00:20:21.787 listed in any of the enumerated 00:20:21.787 --> 00:20:26.260 headings within the parentheses. Similar 00:20:26.260 --> 00:20:26.261 to the headings listed in 00:20:26.261 --> 00:20:32.592 the intro, these are unique headings as 00:20:32.592 --> 00:20:32.593 they are parts provisions 00:20:32.593 --> 00:20:36.026 themselves. For instance, heading 8409 00:20:36.026 --> 00:20:38.625 provides for parts, 8401 00:20:38.625 --> 00:20:54.797 provides for machinery that is classified 00:20:54.797 --> 00:20:54.798 in 84258030. 8448 provides 00:20:54.798 --> 00:20:54.800 for auxiliary equipment of certain machinery, heading 8466 provides 00:20:54.800 --> 00:21:05.627 for parts and accessories for work and tool holders, 00:21:05.627 --> 00:21:05.628 8473 provides 00:21:05.628 --> 00:21:05.630 for parts of printed circuit assemblies, so you get the gist. The 00:21:05.630 --> 00:21:08.728 headings are specific parts provisions that account for certain items 00:21:08.728 --> 00:21:08.729 00:21:08.729 --> 00:21:13.842 and logically they are excluded from this 00:21:13.842 --> 00:21:21.496 note. 00:21:21.496 --> 00:21:21.498 But what is the note referring to when it says respective 00:21:21.498 --> 00:21:31.652 heading. And the harmonized tariff schedule 00:21:31.652 --> 00:21:31.653 the heading is the first 00:21:31.653 --> 00:21:31.655 four digits of the heading classification. Headings and the heading 00:21:31.655 --> 00:21:39.550 language are legally binding and are the same for every 00:21:39.550 --> 00:21:39.551 country that 00:21:39.551 --> 00:21:48.634 is part of the WTO. Note to a is an extension of GRI one which says 00:21:48.634 --> 00:21:48.635 00:21:48.635 --> 00:21:48.637 with the provision completely accurately describes a product, then 00:21:48.637 --> 00:21:48.665 the product will be classified in that provision. The terms of the 00:21:48.665 --> 00:21:56.399 heading constitute a legal text and 00:21:56.399 --> 00:21:56.400 basically, note to a is 00:21:56.400 --> 00:22:08.240 expressing what GRI is for parts of 00:22:08.240 --> 00:22:08.241 machines. 00:22:08.241 --> 00:22:08.243 So here you can see the first heading listed in Chapter 84 and 00:22:08.243 --> 00:22:12.717 it is 8401. It's legal test provides for 00:22:12.717 --> 00:22:12.718 nuclear reactors amongst 00:22:12.718 --> 00:22:22.839 other things. Therefore, let's say we 00:22:22.839 --> 00:22:22.840 were classifying a nuclear 00:22:22.840 --> 00:22:26.829 reactor using a plant. We would understand that heading 8401 00:22:26.829 --> 00:22:26.830 whose 00:22:26.830 --> 00:22:31.831 text says it provides for nuclear reactors 00:22:31.831 --> 00:22:31.832 is likely to be the 00:22:31.832 --> 00:22:43.168 optimal location. 00:22:43.168 --> 00:22:43.170 Okay, now that we have broken down the note, we can get into 00:22:43.170 --> 00:22:46.091 some case studies. Now, our first case 00:22:46.091 --> 00:23:10.709 study is a propeller shaft. 00:23:10.709 --> 00:23:10.711 The propeller shaft or prop shaft is a component of a drivetrain with 00:23:10.711 --> 00:23:10.714 the purpose of delivering torque from transmission to the 00:23:10.714 --> 00:23:10.718 differential in which then transmits the torque to the wheels to move 00:23:10.718 --> 00:23:10.723 the vehicle. If you take a look at this picture, you can see how a 00:23:10.723 --> 00:23:15.332 prop shaft is used. I do need to mention 00:23:15.332 --> 00:23:15.333 it is not clear from the 00:23:15.333 --> 00:23:18.599 ruling whether the prop shaft is just a 00:23:18.599 --> 00:23:27.869 tubular shaft or a tubular 00:23:27.869 --> 00:23:27.871 shaft with a tubular joint. Nevertheless, we will be able to make our 00:23:27.871 --> 00:23:35.795 classification considerations. 00:23:35.795 --> 00:23:40.619 Here are some helpful questions that cover the points 00:23:40.619 --> 00:23:40.620 I've just 00:23:40.620 --> 00:23:41.994 gone through earlier in the presentation. They will help us determine 00:23:41.994 --> 00:23:41.995 00:23:41.995 --> 00:23:52.814 whether the item fulfills note to and 00:23:52.814 --> 00:23:52.815 more specifically note to a to 00:23:52.815 --> 00:23:52.817 Section 16. One thing to keep in mind is the questions are intended 00:23:52.817 --> 00:24:02.780 to be applied in order. 00:24:02.780 --> 00:24:02.782 So let's begin with question one which says is the shaft listed 00:24:02.782 --> 00:24:24.820 in note one Section 16 or note one to 00:24:24.820 --> 00:24:24.821 Chapter 84? Well, here we begin 00:24:24.821 --> 00:24:24.823 with note one to Section 16 and we can see note 1L excludes articles 00:24:24.823 --> 00:24:24.826 of Section 16 from this section. You can see it is highlighted and 00:24:24.826 --> 00:24:29.461 boxed off in the top of the note if you can't see the note clearly. 00:24:29.461 --> 00:24:29.462 00:24:29.462 --> 00:24:32.699 In our scenario, we know the shaft is used in a motor vehicle 00:24:32.699 --> 00:24:32.700 and 00:24:32.700 --> 00:24:44.063 motor vehicles fall within Section 17 00:24:44.063 --> 00:24:44.096 which, by the way, doesn't fall 00:24:44.096 --> 00:24:44.098 into your area of responsibility. But it brings up an important point 00:24:44.098 --> 00:24:50.416 which is that it is important to be familiar 00:24:50.416 --> 00:24:50.417 with other sections and 00:24:50.417 --> 00:24:53.004 chapters otherwise applications of the various notes 00:24:53.004 --> 00:24:53.005 will be pretty 00:24:53.005 --> 00:25:00.417 challenging. 00:25:00.417 --> 00:25:16.156 So, back to the questions for our prop shaft. 00:25:16.156 --> 00:25:16.157 We saw the 00:25:16.157 --> 00:25:16.159 exclusion so we can answer yes to question one because we would 00:25:16.159 --> 00:25:16.162 recognize that note one Al to Section 16 excludes the shaft. We 00:25:16.162 --> 00:25:16.747 wouldn't go further in the classification process 00:25:16.747 --> 00:25:20.345 and consider any 84 00:25:20.345 --> 00:25:35.467 heading. The instructions tell us where 00:25:35.467 --> 00:25:35.468 to go in the tariff schedule. 00:25:35.468 --> 00:25:35.494 This is why New York ruling N317522 classified the propeller 00:25:35.494 --> 00:25:40.302 shaft within subheading 8708.99.6805 00:25:40.302 --> 00:25:40.303 which provides for parts and 00:25:40.303 --> 00:25:45.808 accessories of motor vehicles of headings 00:25:45.808 --> 00:25:50.310 8701 to 8705 other parts 00:25:50.310 --> 00:25:52.536 and accessories other other other other 00:25:52.536 --> 00:25:55.775 other parts of powertrains: 00:25:55.775 --> 00:26:05.262 Driveshafts. In our next case study we 00:26:05.262 --> 00:26:05.263 have a ceramic bearing. It is 00:26:05.263 --> 00:26:10.079 described as having operating components 00:26:10.079 --> 00:26:10.080 consists posed of ceramic 00:26:10.080 --> 00:26:23.306 materials. This configuration consists of 00:26:23.306 --> 00:26:23.307 two concentric ceramic 00:26:23.307 --> 00:26:23.309 races between which are placed a series of ceramic ruling elements. 00:26:23.309 --> 00:26:23.337 There is also a retainer that holds the ceramic bowls or rollers in 00:26:23.337 --> 00:26:30.030 place. The bearing is an anti-friction 00:26:30.030 --> 00:26:30.031 mechanism and is designed to 00:26:30.031 --> 00:26:33.280 guide moving parts. 00:26:33.280 --> 00:26:36.719 As we did in the previous case 00:26:36.719 --> 00:26:47.086 study we go through our 00:26:47.086 --> 00:26:47.088 questions and begin with question one which asks is the bearing 00:26:47.088 --> 00:27:09.580 listed in note one to Section 16 or note one to 00:27:09.580 --> 00:27:09.581 Chapter 84? 00:27:09.581 --> 00:27:09.583 All right, let's go through the drill. Bearings are not 00:27:09.583 --> 00:27:09.586 specifically listed in note one Section 16. There are a few 00:27:09.586 --> 00:27:09.590 exclusions for material composition but the bearings are of ceramic 00:27:09.590 --> 00:27:21.422 material and there is not an exclusion for that material. 00:27:21.422 --> 00:27:21.423 While the 00:27:21.423 --> 00:27:21.425 others exclusions contains cogs, toys and games in Chapter 95 those 00:27:21.425 --> 00:27:23.355 notes do not apply here. Also we cannot 00:27:23.355 --> 00:27:33.283 forget note 1G which concerns 00:27:33.283 --> 00:27:33.285 parts of general use. However if we go to Section 15 we will find 00:27:33.285 --> 00:27:53.748 bearings are not listed as parts of general use. 00:27:53.748 --> 00:27:53.749 That contrary to 00:27:53.749 --> 00:27:53.751 what a lot of people think parts of general use does not mean parts 00:27:53.751 --> 00:27:53.782 that have multiple applications or parts which have no principal use, 00:27:53.782 --> 00:27:53.784 made to order parts that are suitable for one particular application 00:27:53.784 --> 00:27:53.787 and not good for anything else can still be classified as parts of 00:27:53.787 --> 00:27:57.006 general use. The term has a very precise 00:27:57.006 --> 00:28:06.121 definition found in note two 00:28:06.121 --> 00:28:06.123 to Section 15. Consequently, there are certain headings in Chapter 73 00:28:06.123 --> 00:28:16.098 and 83 listed as parts of general use. 00:28:16.098 --> 00:28:16.100 However, if we were to look at designated headings in these 00:28:16.100 --> 00:28:26.748 chapters we would not find bearings listed. 00:28:26.748 --> 00:28:26.749 All in all this applies 00:28:26.749 --> 00:28:39.305 to note one Section 16. 00:28:39.305 --> 00:28:39.307 Now we move to note one Chapter 84 we notice B which excludes 00:28:39.307 --> 00:28:39.310 machinery or appliances of ceramic material and ceramic parts of 00:28:39.310 --> 00:28:59.101 machinery of material of Chapter 69. 00:28:59.101 --> 00:28:59.103 Therefore, in knowing the bearing is excluded by note 1B to 00:28:59.103 --> 00:29:02.031 Chapter 84. We would answer yes to question one 00:29:02.031 --> 00:29:02.032 and the process would 00:29:02.032 --> 00:29:10.101 stop. It is excluded from the chapter and 00:29:10.101 --> 00:29:10.102 it would be classified 00:29:10.102 --> 00:29:32.296 somewhere else. 00:29:32.296 --> 00:29:32.298 This is why headquarters ruling 087329 classified the ceramic 00:29:32.298 --> 00:29:32.301 bearing under subheading 6909.19.50 which provides ceramic wares for 00:29:32.301 --> 00:29:42.273 laboratory, chemical, or other technical uses: Other: Other. 00:29:42.273 --> 00:29:42.274 00:29:42.274 --> 00:29:42.276 Our next case study is for ball bearings used in a water pump. 00:29:42.276 --> 00:29:56.337 The bearings consist of two balls and 00:29:56.337 --> 00:29:56.338 outer ring of two bulk tracks 00:29:56.338 --> 00:29:56.368 and then inner ring that is machine directly into the surface of an 00:29:56.368 --> 00:29:56.370 internal shaft. They are of metal material and have outside diameters 00:29:56.370 --> 00:30:05.138 ranging from 26 mm to 55 mm. 00:30:05.138 --> 00:30:08.580 Again we start with question one, 00:30:08.580 --> 00:30:14.798 and look to apply note one to 00:30:14.798 --> 00:30:19.425 Section 16. And if we look at the note, we 00:30:19.425 --> 00:30:19.426 won't see the bearings in 00:30:19.426 --> 00:30:25.441 general listed. And we know the bearing 00:30:25.441 --> 00:30:25.442 is the material so it is not 00:30:25.442 --> 00:30:39.534 excluded by any notes concerning material composition. 00:30:39.534 --> 00:30:39.566 Also as I 00:30:39.566 --> 00:30:39.568 mentioned earlier, bearings are not parts of general use. In 00:30:39.568 --> 00:30:39.571 reviewing notes one a through Q we can say there isn't a part of note 00:30:39.571 --> 00:30:42.126 one that applies to our bearings. 00:30:42.126 --> 00:30:51.756 Therefore, we moved to note one to 00:30:51.756 --> 00:30:51.758 Chapter 84. 00:30:51.758 --> 00:30:58.978 All right, here is no one to 00:30:58.978 --> 00:30:58.979 Chapter 84 and as we can see, 00:30:58.979 --> 00:31:05.364 nothing listed for A through H applies to 00:31:05.364 --> 00:31:12.724 our metal bearings. So we 00:31:12.724 --> 00:31:12.726 are at the point where we can say no to question one and move along 00:31:12.726 --> 00:31:16.005 to question two which says are the 00:31:16.005 --> 00:31:16.006 bearings provided for in any of 00:31:16.006 --> 00:31:32.497 the headings listed in parentheses? 00:31:32.497 --> 00:31:32.526 Well, if we were to look into the headings that are listed we 00:31:32.526 --> 00:31:32.528 would see bearings are not provided for in heading 8484, it's not a 00:31:32.528 --> 00:31:44.552 gasket or a mechanical seal or either. It 00:31:44.552 --> 00:31:44.553 is not anything of 00:31:44.553 --> 00:31:44.555 Chapter 85. So those exclusions don't apply. So we can answer no to 00:31:44.555 --> 00:31:48.143 question two and move to question three. 00:31:48.143 --> 00:31:48.144 It says are the bearings 00:31:48.144 --> 00:31:56.055 used in a machine? 00:31:56.055 --> 00:31:56.057 Well, pumps are considered to be machines. Liquid pumps consist 00:31:56.057 --> 00:31:59.140 of components that transfer motion for 00:31:59.140 --> 00:31:59.141 the purpose of circulating 00:31:59.141 --> 00:32:03.421 fluid. So we could answer yes to question 00:32:03.421 --> 00:32:09.473 three and moved to question 00:32:09.473 --> 00:32:19.587 four which says are the bearings a part of the machine? 00:32:19.587 --> 00:32:19.588 A little 00:32:19.588 --> 00:32:19.590 research would tell us these machines are part of the motion of the 00:32:19.590 --> 00:32:29.241 prepare propeller and part of the shaft. 00:32:29.241 --> 00:32:29.242 The bearings contribute to 00:32:29.242 --> 00:32:33.702 the operation of the pumps and it is a yes for question four. 00:32:33.702 --> 00:32:33.703 We 00:32:33.703 --> 00:32:36.779 proceed to question five. Is there a heading 00:32:36.779 --> 00:32:36.780 that specifically 00:32:36.780 --> 00:32:44.023 provides for bearings? The answer is yes. 00:32:44.023 --> 00:32:44.024 00:32:44.024 --> 00:32:49.383 We can see the heading 8482 provides specifically for bearings. 00:32:49.383 --> 00:32:49.384 00:32:49.384 --> 00:32:59.680 Just to remind you that subpart a of this note, if you recall, 00:32:59.680 --> 00:32:59.681 has 00:32:59.681 --> 00:32:59.683 headings listed in parentheses such as 8409 which provides for parts 00:32:59.683 --> 00:32:59.686 of engines. To be thorough you would have to check those headings as 00:32:59.686 --> 00:33:01.904 well. 00:33:01.904 --> 00:33:10.308 But I can assure you that the make 00:33:10.308 --> 00:33:10.309 and model listed in those 00:33:10.309 --> 00:33:10.311 headings, I did look at them and this is likely as there is a heading 00:33:10.311 --> 00:33:13.933 specifically that provides for bearings 00:33:13.933 --> 00:33:23.205 which you can see here. 00:33:23.205 --> 00:33:23.207 This is why New York ruling classified ball bearings with an 00:33:23.207 --> 00:33:37.831 outside diameter of 30 mm or less under 00:33:37.831 --> 00:33:37.832 subheading 84101040 and ball 00:33:37.832 --> 00:33:48.318 bearings with an outside diameter greater than 30 mm 8482.10.1082. 00:33:48.318 --> 00:33:48.319 00:33:48.319 --> 00:33:48.321 Our next case study is a pulley used in a hydraulic 00:33:48.321 --> 00:33:51.063 transmission for a lawnmower. It is a 00:33:51.063 --> 00:34:03.125 transmission belt that allows 00:34:03.125 --> 00:34:03.127 for the transmission of power. 00:34:03.127 --> 00:34:03.130 Again, here are our first questions. We start with question 00:34:03.130 --> 00:34:06.225 one. Is the pulley listed in note one to 00:34:06.225 --> 00:34:21.697 Section 16 or note one to 00:34:21.697 --> 00:34:21.698 Chapter 84? Pulleys are not listed by name in note one to Section 16 00:34:21.698 --> 00:34:43.041 and we can confirm pulleys are not parts of general use by looking at 00:34:43.041 --> 00:34:43.075 Chapter 15. Also while the material composition is not stated the 00:34:43.075 --> 00:34:43.077 company may be asking for confidentiality for this, we know pulleys 00:34:43.077 --> 00:34:43.080 used in a hydraulic system tend to be constructed from durable 00:34:43.080 --> 00:34:50.467 materials such as steel or iron. That is what allows them to endure 00:34:50.467 --> 00:34:50.468 00:34:50.468 --> 00:34:50.470 that heavy fluid pressure. 00:34:50.470 --> 00:34:50.473 Therefore, the pulley is not excluded by any of the notes 00:34:50.473 --> 00:35:00.748 listed on material competition or 00:35:00.748 --> 00:35:00.749 application. Consequently we know 00:35:00.749 --> 00:35:16.393 they are not excluded from Section 16 based on the snow. 00:35:16.393 --> 00:35:16.425 00:35:16.425 --> 00:35:16.427 We can see pulleys are not excluded from Chapter 84, they are 00:35:16.427 --> 00:35:21.563 not a ceramic material, they are not otherwise listed. 00:35:21.563 --> 00:35:21.564 00:35:21.564 --> 00:35:31.726 All right, being pulleys are not excluded 00:35:31.726 --> 00:35:31.727 from note one to 00:35:31.727 --> 00:35:31.729 Section 16, or note one to Chapter 84, we can answer no to question 00:35:31.729 --> 00:35:36.694 one and continue going through the questions. 00:35:36.694 --> 00:35:36.695 Where we have question 00:35:36.695 --> 00:35:40.663 two which says is the pulley provided for 00:35:40.663 --> 00:35:40.664 in any of the headings 00:35:40.664 --> 00:35:53.001 listed in the parentheses? We can say no 00:35:53.001 --> 00:35:53.034 to this question as neither 00:35:53.034 --> 00:35:53.036 heading 8484 which provides again for gaskets and chemical seals or 00:35:53.036 --> 00:35:54.894 the Chapter 85 headings listed, provide 00:35:54.894 --> 00:36:00.753 for pulleys. So the answer is 00:36:00.753 --> 00:36:00.755 no. We moved to question three. 00:36:00.755 --> 00:36:07.113 Is the pulley used in a machine? 00:36:07.113 --> 00:36:07.114 Well, we know pulleys are used 00:36:07.114 --> 00:36:28.442 in the lawnmower. A lawnmower has 00:36:28.442 --> 00:36:28.474 mechanical components, that is how 00:36:28.474 --> 00:36:28.476 it is able to cut grass. It has blades and you can move it around so 00:36:28.476 --> 00:36:28.479 you can have these revolving blades cut grass. Clearly, the lawnmower 00:36:28.479 --> 00:36:34.808 is a machine so it is a yes for question three. 00:36:34.808 --> 00:36:34.838 00:36:34.838 --> 00:36:58.938 We moved to question four. Is the pulley a part of a machine? 00:36:58.938 --> 00:36:58.939 00:36:58.939 --> 00:36:58.941 We know the pulley helps transmit power to the blades. It is the 00:36:58.941 --> 00:36:58.944 blades that are directly related to the cutting of the grass. We can 00:36:58.944 --> 00:36:58.948 say that the lawnmower would not be able to cut the grass without the 00:36:58.948 --> 00:36:58.953 power from the pulley. Therefore it is a yes for question four. 00:36:58.953 --> 00:36:58.968 Last we have question five. Is there a heading that 00:36:58.968 --> 00:37:03.718 specifically provides for pulleys? Yes. 00:37:03.718 --> 00:37:08.382 It is heading 8483. And you 00:37:08.382 --> 00:37:13.019 can see that if you look down to line 5 of the heading. 00:37:13.019 --> 00:37:13.020 00:37:13.020 --> 00:37:20.401 This is why New York ruling 87011 00:37:20.401 --> 00:37:23.186 classified it with the 00:37:23.186 --> 00:37:29.372 heading 8483. 00:37:29.372 --> 00:37:37.476 All right, this is applying note to 00:37:37.476 --> 00:37:37.477 Ada Section 16. Here we are 00:37:37.477 --> 00:37:42.286 looking at a reciprocated of positive 00:37:42.286 --> 00:37:42.287 displacement pump. It is used 00:37:42.287 --> 00:37:49.852 in a coffee vending system. Its purpose 00:37:49.852 --> 00:37:49.853 is to dispense a 00:37:49.853 --> 00:37:54.661 predetermined volume of coffee concentrate. 00:37:54.661 --> 00:37:54.662 Once again, we have are 00:37:54.662 --> 00:38:01.032 five questions and we begin with question 00:38:01.032 --> 00:38:01.033 one. 00:38:01.033 --> 00:38:03.945 Is the pump listed in note one to 00:38:03.945 --> 00:38:16.854 Section 16 or note one to 00:38:16.854 --> 00:38:16.855 Chapter 84? Once again, we start by looking at note one to 00:38:16.855 --> 00:38:16.857 Section 16. Pumps by name are not specifically listed and we have 00:38:16.857 --> 00:38:28.885 checked and they are not general use 00:38:28.885 --> 00:38:28.886 items. Material composition was, 00:38:28.886 --> 00:38:28.888 it is plastic and plastic articles are not excluded. Furthermore it's 00:38:28.888 --> 00:38:35.747 not excluded by application so after 00:38:35.747 --> 00:38:35.748 reviewing note one to 00:38:35.748 --> 00:38:45.304 Section 16, we can move on to note one to 00:38:45.304 --> 00:38:45.305 Chapter 84. 00:38:45.305 --> 00:38:45.307 Here, we have no one to Chapter 84. Once we do our review of 00:38:45.307 --> 00:38:56.815 this note, we can say that pumps do not 00:38:56.815 --> 00:38:56.816 fall within any of these 00:38:56.816 --> 00:38:56.848 notes. It is not made out of ceramic it is made out of plastic and it 00:38:56.848 --> 00:39:05.305 is not any of the items listed. 00:39:05.305 --> 00:39:05.307 So, in returning to our questions we would say no to question 00:39:05.307 --> 00:39:10.108 one and move forward to question two. Is 00:39:10.108 --> 00:39:10.109 the pump provided for in any 00:39:10.109 --> 00:39:36.264 of the headings listed in the parentheses of note to? 00:39:36.264 --> 00:39:36.265 Again, pumps 00:39:36.265 --> 00:39:36.267 are not provided for in heading 8484, it is not a gasket, it is not a 00:39:36.267 --> 00:39:36.270 mechanical seal or anything of the Chapter 85 headings. So it is a no 00:39:36.270 --> 00:39:36.274 for question two. We moved to question three, is the pump used in a 00:39:36.274 --> 00:39:36.292 machine? Well we know the pump is used in a coffee vending system. We 00:39:36.292 --> 00:39:42.420 know coffee vending machines have components 00:39:42.420 --> 00:39:42.421 that heat and allow for 00:39:42.421 --> 00:39:48.438 powder and water to be measured and mixed and then dispensed. 00:39:48.438 --> 00:39:48.439 There 00:39:48.439 --> 00:39:48.441 are mechanical components that are actively working to create and 00:39:48.441 --> 00:40:01.524 provide coffee. Therefore, we can say the 00:40:01.524 --> 00:40:01.525 vending machine is a 00:40:01.525 --> 00:40:01.556 machine for classification purposes and so yes is the answer for 00:40:01.556 --> 00:40:01.558 question three. 00:40:01.558 --> 00:40:09.111 We moved to question four. Is the 00:40:09.111 --> 00:40:09.142 pump a part of a machine? We 00:40:09.142 --> 00:40:09.144 know the pump is what allows the coffee to mechanically be dropped 00:40:09.144 --> 00:40:44.411 into a cup and so the pump is a part of 00:40:44.411 --> 00:40:44.412 the coffee vending machine. 00:40:44.412 --> 00:40:44.414 Therefore, it is a yes for question four and we moved to question 00:40:44.414 --> 00:40:44.417 five. Is there a heading that specifically provides for pumps? Yes. 00:40:44.417 --> 00:40:44.421 That is heading 8413 which provides pumps for liquids and this pump 00:40:44.421 --> 00:40:44.426 is a liquid pump. Again just a reminder we do have to check the 00:40:44.426 --> 00:40:44.432 headings listed in the parentheses of subpart eight to see if there 00:40:44.432 --> 00:40:54.209 headings that apply. I did check in none of these headings apply. 00:40:54.209 --> 00:40:54.235 We 00:40:54.235 --> 00:40:54.237 also do have the reassurance because we have a heading that 00:40:54.237 --> 00:40:54.240 specifically provides for liquid pumps and those headings are parts 00:40:54.240 --> 00:41:00.433 provisions. 00:41:00.433 --> 00:41:07.135 This is why New York ruling R 00109 00:41:07.135 --> 00:41:07.136 dated the pump under 00:41:07.136 --> 00:41:25.227 heading 8413. In summary, we have learned 00:41:25.227 --> 00:41:25.228 to apply note to Ada 00:41:25.228 --> 00:41:25.230 Section 16 and if you have questions to consider when applying this 00:41:25.230 --> 00:41:25.233 legal note. Overall, it is important to understand the product you 00:41:25.233 --> 00:41:33.121 are classifying before you can apply any 00:41:33.121 --> 00:41:33.122 legal notes. It is good to 00:41:33.122 --> 00:41:37.948 know what the item is, how it works, etc. 00:41:37.948 --> 00:41:37.949 Then from there it is 00:41:37.949 --> 00:41:57.234 important to understand the GRI. They are 00:41:57.234 --> 00:41:57.235 part of the HCS and legally 00:41:57.235 --> 00:41:57.237 binding. There are six applied in the order presented. They go from 00:41:57.237 --> 00:41:57.268 simple, straightforward classification scenarios to more complex 00:41:57.268 --> 00:41:57.270 ones. Along with the GRI's we have established precedent. If there is 00:41:57.270 --> 00:42:00.710 a ruling out there for same or similar 00:42:00.710 --> 00:42:08.441 merchandise we need to take 00:42:08.441 --> 00:42:08.443 that into consideration. Remember those rules are legally binding 00:42:08.443 --> 00:42:12.553 whether they are New York rulings. 00:42:12.553 --> 00:42:37.006 Another thing to keep in mind our 00:42:37.006 --> 00:42:37.008 decisions from the court of international trade. The court of 00:42:37.008 --> 00:42:37.011 international trade is the judicial body that makes final decisions 00:42:37.011 --> 00:42:37.015 related to importations. 00:42:37.015 --> 00:42:37.020 Here are links for the points I just mentioned on the previous 00:42:37.020 --> 00:42:37.026 slide. I have them bookmarked and I visit the first two on a daily 00:42:37.026 --> 00:42:45.931 basis so they are very helpful. 00:42:45.931 --> 00:42:45.933 Okay, this concludes my presentation and here is my contact 00:42:45.933 --> 00:42:50.891 information should you need to get something clarified 00:42:50.891 --> 00:42:50.892 where you want 00:42:50.892 --> 00:43:02.614 to discuss the topic further. Does anybody have any questions? 00:43:02.614 --> 00:43:02.615 Okay. 00:43:02.615 --> 00:43:02.617 I will just wait a minute or two to make sure I am not missing 00:43:02.617 --> 00:43:06.570 anything or maybe somebody will think of 00:43:06.570 --> 00:43:24.267 something. Okay I don't see 00:43:24.267 --> 00:43:24.269 any, am I missing any questions. 00:43:24.269 --> 00:43:24.272 >> There was one question that just popped up. Let me get to 00:43:24.272 --> 00:43:36.311 it. Can you please show PowerPoint page 00:43:36.311 --> 00:43:36.312 51 maybe? 00:43:36.312 --> 00:43:43.861 >> Oh yeah. Here you go. Yet those 00:43:43.861 --> 00:43:59.223 are pretty useful links. 00:43:59.223 --> 00:43:59.225 >> And then one more they asked for can you show slide 11 and 00:43:59.225 --> 00:43:59.228 the slide right before the summary? 00:43:59.228 --> 00:44:07.094 >> Okay. So this is the slide before the summary. 00:44:07.094 --> 00:44:07.095 And then 11 00:44:07.095 --> 00:44:07.097 right? 00:44:07.097 --> 00:44:23.255 >> Yes. 00:44:23.255 --> 00:44:31.033 >> This is 11. 00:44:31.033 --> 00:44:33.976 >> Someone is asking for slide 20. 00:44:33.976 --> 00:44:52.364 >> 20? Sure. 00:44:52.364 --> 00:45:19.715 >> There was one more request for the summary slide again. 00:45:19.715 --> 00:45:19.716 00:45:19.716 --> 00:45:19.745 >> Where is summary? There we go. 00:45:19.745 --> 00:45:19.747 >> Someone is asking if you can explain general use part. 00:45:19.747 --> 00:45:24.555 >> General use part? That is not a 00:45:24.555 --> 00:45:30.903 section I handle, that is 00:45:30.903 --> 00:45:30.904 Section 15. But if you go to note to Section 15 it really explains 00:45:30.904 --> 00:45:39.005 it. I believe there is also on ICP on 00:45:39.005 --> 00:45:39.006 CPP.gov it gives pretty useful 00:45:39.006 --> 00:45:43.815 information. We do have an IIS that 00:45:43.815 --> 00:45:47.415 specializes in that so that would 00:45:47.415 --> 00:45:53.273 probably be a better question for that 00:45:53.273 --> 00:46:04.794 NIS. It is something I'm 00:46:04.794 --> 00:46:12.514 familiar with for my section but it is 00:46:12.514 --> 00:46:12.515 better to ask NIS. So if you 00:46:12.515 --> 00:46:15.104 send me an email I can get you directed 00:46:15.104 --> 00:46:20.265 towards them. 00:46:20.265 --> 00:46:20.267 >> There is a request to go back to the ruling on the coffee 00:46:20.267 --> 00:46:24.902 pump. 00:46:24.902 --> 00:46:31.054 >> On the coffee pump? Sure. 00:46:31.054 --> 00:46:41.372 >> And while we are here there is a question for 00:46:41.372 --> 00:46:41.373 you so 00:46:41.373 --> 00:46:41.375 bearings are not parts of general use but they are covered by GRI one 00:46:41.375 --> 00:46:45.174 since they are specifically called out? Or is it more complicated? 00:46:45.174 --> 00:46:45.175 00:46:45.175 --> 00:46:50.328 >> That is part of the reason I gave the example 00:46:50.328 --> 00:46:50.329 it is GRI one 00:46:50.329 --> 00:46:56.388 the bearings are specifically provided 00:46:56.388 --> 00:46:59.630 for in heading 8482. But no, 00:46:59.630 --> 00:47:09.619 that note to a is an extension of GRI one 00:47:09.619 --> 00:47:09.620 to use it in a machine you 00:47:09.620 --> 00:47:11.518 have to look at that. Just as I mentioned, in normal circumstances 00:47:11.518 --> 00:47:11.519 if 00:47:11.519 --> 00:47:22.332 it is a metal, or not of a material 00:47:22.332 --> 00:47:22.333 composition that excludes it, 00:47:22.333 --> 00:47:24.553 then it would go under heading 8482. But 00:47:24.553 --> 00:47:24.554 for the purpose of the 00:47:24.554 --> 00:47:39.883 example it was to bring the attention 00:47:39.883 --> 00:47:39.884 that there is other things to 00:47:39.884 --> 00:47:39.886 consider. Such as material composition, the section note, the chapter 00:47:39.886 --> 00:47:42.959 note, in this case it would be the chapter note on ceramic articles. 00:47:42.959 --> 00:47:42.960 00:47:42.960 --> 00:47:46.436 So yes, but you do have to take in other 00:47:46.436 --> 00:48:08.245 considerations. 00:48:08.245 --> 00:48:15.957 >> I don't think there are any others. 00:48:15.957 --> 00:48:15.958 00:48:15.958 --> 00:48:25.096 >> Okay. Thank you everyone to 00:48:25.096 --> 00:48:25.097 tuning into today's webinar. I 00:48:25.097 --> 00:48:42.626 really appreciate it and hope you found something useful. Thank you. 00:48:42.626 --> 00:48:42.627 00:48:42.627 --> 00:48:42.629 >> Thank you Miss Martinez. Thank you everyone for joining us 00:48:42.629 --> 00:48:42.632 today we hope you found today's webinar very informative. The CCS and 00:48:42.632 --> 00:48:42.660 CES credit code has been placed into the chat coat box and you can 00:48:42.660 --> 00:48:49.865 look at it there. Today's webinar will be 00:48:49.865 --> 00:48:49.866 posted on CVP.gov under the 00:48:49.866 --> 00:48:54.846 trade outreach webinars. This concludes 00:48:54.847 --> 00:48:54.847 you have a good day. Thank you.