ITC Issues Preliminary Edition of 2017 HTS: Part 5 (Machinery and Electrical Equipment)

(NOTE: Summaries of changes to other chapters will appear in upcoming issues of International Trade Today. See the Change Record (here) for a full list of changes, including modifications to Schedule B numbers in the “Notice to Exporters” and changes that were already reflected in previous editions of the HTS. The effective date of all of the changes listed below is Jan. 1, 2017, unless otherwise noted. See 1701030032 for part one covering the general notes through Chapter 3, 1701040046 for part two covering changes to chapters 4-29, 1701050035 for part three covering changes to chapters 30-48, and 1701060041 for part four covering changes to chapters 54 through 83.)

Machinery

Changes to HTS Chapter 84 for machinery include new subheadings for agricultural equipment and material removal machines, including water-jet cutters. Tariff provisions for boring and grinding machines are also reorganized.

Radiators. New section (g) of note 1 to Chapter 84 says that radiators for vehicles, aircraft, vessels and other transportation equipment of section VXII of the HTS are not classifiable in Chapter 84.

Heating or cold-treatment laboratory equipment. Note 2(e) to Chapter 84 is amended to say that laboratory equipment is not classifiable in heading 8419, which covers machinery, plant or lab equipment for the treatment of materials involving a change in temperature, if laboratory equipment is designed for mechanical operation and the change in temperature, “even if necessary, is subsidiary.” The note still includes that exclusion for machinery and plant.

Valves for transmissions. New subheading note 3 is added to define “valves for oleohydraulic or pneumatic transmissions” in subheading 8481.20. The note defines the term as “valves which are used specifically in the transmission of ‘fluid power’ in a hydraulic or pneumatic system, where the energy source is supplied in the form of pressurized fluids (liquid or gas). These valves may be of any type (for example, pressure-reducing type, check type). Subheading 8481.20 takes precedence over all other subheadings of heading 8481.”

Self-contained floor and ceiling air conditioners. The text describing subheadings 8415.10.30 through 8415.10.90 is amended to say the subheadings cover air conditioning machines “of a kind designed to be fixed to a window, wall, ceiling or floor, self-contained or ‘split system.’” The text had previously said “[w]indow or wall types, self-contained or ‘split-system.’”

Sprayers for printed circuit manufacturing. Subheading 8424.89.10 for mechanical appliances for projecting, dispersing or spraying that are used for the manufacture of printed circuit assemblies is eliminated in the 2017 Preliminary Edition of the HTS, after having been added in July. The residual category for all “other” dispersing and spraying machines is now the single subheading 8424.89.00.

Agricultural or horticultural sprayers. New subheadings are added for agricultural or horticultural sprayers. Subheading 8424.41.10 covers portable sprayers except self-contained sprayers with a capacity not over 20 liters. Subheading 8424.41.90 covers other portable sprayers, and subheading 8424.49.00 covers other (i.e., non-portable) agricultural or horticultural sprayers.

Previous provisions for classification of agricultural or horticultural sprayers under subheading 8424.81.10, 8424.81.9040 and 8424.81.9090 are eliminated. The rest of subheading 8424.81 is redesignated as new subheading 8424.82.00 for other agricultural or horticultural appliances, including self-propelled, center pivot irrigation equipment in new 8424.82.0010, other irrigation equipment in 8424.82.0020, and other agricultural or horticultural appliances in 8424.82.0090.

Seeders, planters and transplanters. Former subheading 8432.30.00 for seeders, planters and transplanters is divided into subheadings 8432.31.0010 for non-till planters and transplanters and 8432.31.0090 for no-till seeders, and subheadings 8432.39.0010 and 8432.39.0090 for other planters and transplanters and seeders, respectively.

Manure spreaders and fertilizer distributors. Former subheading 8432.40.00 for manure spreaders and fertilizer distributors is divided into subheading 8432.41.00 for manure spreaders, and subheading 8432.42.00 for fertilizer distributors.

Parts of agricultural, horticultural or forestry machinery. Ten-digit statistical suffixes for parts of agricultural and horticultural machinery under subheading 8432.90.00 are renumbered, with new statistical suffixes 8432.90.0010 for road wheels without tires and 8432.90.0020 for wheel and tire assemblies added. Existing statistical suffixes are renumbered for parts of plows (8432.90.0040), of harrows, scarifiers, cultivators, weeders and hoes (8432.90.0050), of seeders, planters, transplanters, manure spreaders and fertilizer distributors (8432.90.0060), and of other machinery (8432.90.0081).

Printing machinery. The text of heading 8442 for printing components and machines for making them is modified to say all machines of headings 8456 to 8465 cannot be classified in heading 8442, not just machine tools of headings 8456 to 8465.

Cutting and material removal machines. Material removal machines operated by non-laser light or photon beam processes, plasma arc processes and water-jet cutting machines are given their own subheadings in heading 8456.

Machines for removal of material operated by light or photon beam processes, formerly classified alongside laser-cutting machines in subheading 8456.10, are broken out into new subheadings 8456.12.1010 for numerically controlled machines for working metal; 8456.12.1050 for other machines for working metal; 8456.12.70 for non-laser light or photon beam machines used in the manufacture of printed circuits, parts of heading 8517 or parts of automatic data processing machines; and 8456.12.9000 for other material removal machines operated by light or photon beam processes. All are dutiable at the same rates applicable to their laser-operated counterparts.

The subheading for laser-operated machines is renumbered 8456.11, with the same 8-digit and 10-digit suffixes as for light or photon-beam machines (i.e., numerically controlled laser machines for working metal are classifiable in subheading 8456.11.1010).

New category 8456.40 is created for material removal machines operated by plasma arc process, with subheading 8456.40.1010 created for numerically controlled plasma arc machines for working metal, and 8456.40.1090 for other plasma arc machines for working metal, both dutiable at 3.5%. Subheading 8456.40.9000 is created for other plasma arc machines, dutiable at 2.2%.

Water-jet cutting machines are now classifiable in new subheading 8456.50.0000, dutiable at 2.5%. Subheadings within 8456.90, which previously included water-jet cutting machines, are renumbered as 8456.90.31 for other material removal machines for working metal, and 8456.90.71 for other material removal machines, not for working metal. In Chapter 82, the text of heading 8205 is modified to say that parts of water-jet cutting machines are not classified in that heading.

Boring machines. Provisions for “Other boring machines” (i.e., not way-type unit head machines or boring-milling machines), formerly classified in subheading 8459.40.00, are divided into subheadings 8459.41.00 for numerically controlled machines, and 8459.49.00 for non-numerically controlled machines. Statistical suffixes remain for used or rebuilt machines (8459.41.0010 and 8459.49.0010), new machines valued under $3,025 each (8459.41.0020 and 8459.49.0020), and machines valued over $3,025 each, vertical (8459.41.0030 and 8459.49.0030) and other (8459.41.0090 and 8459.49.0090).

Grinding machines. Classification of grinding machines in heading 8450 is overhauled. Subheadings 8460.11.00 and 8450.19.00 are renumbered 8450.12.00 and 8450.19.01, and now cover all “flat-surface grinding machines.” Text requiring the machines can be set up to an accuracy of at least 0.01 mm is eliminated. Non-flat surface grinding machines, again regardless of accuracy, are now classified in subheadings 8460.22.00 for centerless grinding machines, numerically controlled. Subheading 8460.23.00 covers “other grinding machines, numerically controlled” (though the ITC’s report on the tariff changes (here) indicates the subheading should actually cover “other cylindrical grinding machines, numerically controlled"). Subheading 8460.24.00 covers “other [grinding machines], numerically controlled,” and subheading 8460.29.01 covers other grinding machines (i.e., not flat surface and not numerically controlled).

Machining centers for working wood, rubber or plastics. New 8465.20 is created for “machining centers,” defined in new subheading note 1 to Chapter 84 as “machine tools for working wood, cork, bone, hard rubber, hard plastics or similar hard materials, which can carry out different types of machining operation by automatic tool change from a magazine or the like in conformity with a machining program.” Subheading 8465.20.20, dutiable at 3%, covers machining centers for sawing, planing, milling, molding, grinding, sanding, polishing, drilling or mortising. New subheading 8465.20.50, dutiable at 2.9%, covers machining centers for bending or assembling. New subheading 8465.20.80, dutiable at 2.4%, covers other machining centers.

The residual subheading for “other” machine tools for working wood, bone, rubber or hard plastics is renumbered from 8465.99.01 to 8465.99.02, keeping the same statistical suffixes (i.e., lathes, formerly classifiable in subheading 8465.99.0120, are now classifiable in subheading 8465.99.0220).

Machine parts. Heading 9466, which covers parts and accessories for use with the machines of headings 8456 to 8465, is changed so that it refers to parts of “machines,” not just parts of “machine tools.”

Typewriters. Heading 8469, along with the only subheading it included, 8469.00.00 for “[t]ypewriters other than printers of heading 8443” and “word processing machines,” is deleted from the tariff schedule. New subheading 8472.90.50 is added to the heading for “other office machines” to cover typewriters and word processing machines. Subheadings 8473.10.01 through 8473.10.90 for parts of goods of heading 8469 are deleted. New subheadings 8473.40.21 and 8473.40.41 are added for printed circuit assemblies of word processing machines and other parts and accessories of typewriters and word processing machines under subheading 8472.90.50, respectively. Text describing subheadings 8473.50.30, 84473.50.60 and 8473.50.90 is changed so the subheadings no longer cover parts for use in the deleted heading 8469.

Electrical Machinery and Electronics

Changes to Chapter 85 include the removal of subheadings covering multi-component integrated circuits as parts of various products, and a new, simplified scheme for classification of monitors and projectors for use with computers that eliminates a distinction between monitors “solely or principally” used with automatic data processing machines and monitors and projectors that are designed so they can be used with ADPs. A new subheading is also added for LED lamps.

Multi-component integrated circuits. A new section is added to the definition of electronic integrated circuits in U.S. note 9 to Chapter 85 (formerly U.S. Note 8 before being renumbered in the 2017 HTS) to define multi-component integrated circuits for the purposes of headings 8541 and 8542. Additional note 14, which included a definition of multi-component integrated circuits and was referred to in various subheadings (i.e., goods defined in additional note 14 to this chapter) is deleted. Subheadings that referred to the now-defunct additional U.S. note now refer to multi-component integrated circuits.

Specifically, new paragraph b(iv) of U.S. Note 8 defines “multi-component integrated circuits (MCOs)” as “a combination of one or more monolithic, hybrid, or multi-chip integrated circuits with at least one of the following components: silicon-based sensors, actuators, oscillators, resonators or combinations thereof, or components performing the functions of articles classifiable under heading 8532, 8533, 8541, or inductors classifiable under heading 8504, formed to all intents and purposes indivisibly into a single body like an integrated circuit, as a component of a kind used for assembly onto a printed circuit board (PCB) or other carrier, through the connecting of pins, leads, balls, lands, bumps, or pads.” Further definitions are provided for “components,” and silicon-based sensors, actuators, resonators and oscillators.

Several subheadings covering multi-component integrated circuits by referring to subheading note 14 are deleted. The eliminated subheadings, which cover multi-component integrated circuits used as parts in various articles, are as follows: subheading 8504.90.01 for parts of electrical transformers, static converters and inductors; subheading 8518.90.01 for parts of microphones, loudspeakers, headphones and amplifiers of heading 8518; subheading 8522.90.01 for parts for sound or video recording or reproducing apparatus of headings 8519 and 8521; subheading 8529.10.01 for parts of antennas used in products of headings 8525 through 8528; subheading 8529.90.01 for other parts of articles of headings 8525 through 8528; and subheading 8543.90.01 for parts of machines having individual functions not specified elsewhere in chapter 85.

In addition, the change record and ITC report indicate subheading 8531.90.01 for parts of goods of heading 8531, and subheading 8531.90.01 for parts of goods of headings 8535, 8536 and 8537, were also to be deleted. However, the subheadings remain in the current version of the HTS, still referring to the now nonexistent subheading note 14.

Parts for electric cars. The text of subheading 8501.32.4500 for electric motors for use in vehicles is amended so it now refers to new tariff provisions for electric cars under subheadings 8703.40, 8703.50, 8703.60, 8703.70 and 8703.80. The same change is made for subheadings covering batteries for use in electric cars: 8507.20.40 for lead-acid batteries, 8507.30.40 for nickel-cadmium batteries, 8507.40.40 for nickel-iron batteries, 8507.60.0010 for lithium-ion batteries, and 8507.80.40 for other types of batteries for use in electric cars.

Electrical accumulators. New note 3 is added to Chapter 85 to define the term “electric accumulators” for the purposes of heading 8507. According to the new note, the term “electric accumulators” includes “those presented with ancillary components which contribute to the accumulator's function of storing and supplying energy or protect it from damage, such as electrical connectors, temperature control devices (for example, thermistors) and circuit protection devices. They may also include a portion of the protective housing of the goods in which they are to be used.” Former U.S. notes 3 through 9 to Chapter 85 are redesignated U.S. notes 4 through 10.

Monitors and projectors “designed for use” with ADPs. A distinction in heading 8528 between monitors and projectors “solely or principally used in an automatic data processing system of heading 8471,” and monitors and projectors “designed for use” with ADPs, is eliminated. Subheading note 13 to Chapter 85, which said that monitors “designed for use” means they can be used with ADPs but can also be used with other devices, is removed. Two subheadings for flat-panel monitors that referred to subheading note 13 -- 8528.59.21 and 8528.59.31 – are deleted from the HTS.

Subheadings for monitors and projectors “solely or principally used” in ADPs are modified so they now cover monitors and projectors “capable of directly connecting to and designed for use with an automatic data processing machine of 8471.” These subheadings are renumbered, from 8528.41.00 to 8528.42.00 for cathode-ray tube monitors, from 8528.51.00 to 8528.52.00 for other monitors (i.e., not cathode-ray tube monitors), and from 8528.51.00 to 8528.62.00 for projectors.

Text describing subheadings 8504.40.60, 8504.50.40 and 8404.90 for power supplies for monitors and projectors, subheading 8543.70.87 for flat panel displays, and subheadings 8543.90.60 and 8543.90.85 for parts of flat panel displays, is amended to refer to the renumbered subheadings for monitors and projectors. Subheading 8529.90.53, which covers flat-panel screen assemblies, is renumbered to 8529.90.54 and amended so it no longer refers to the deleted subheadings 8528.59.21 and 8529.59.31.

LED lamps. New provisions for light-emitting diode lamps are added to heading 8539 under subheading 8539.50.00. The new subheading refers to new statistical note 8 to Chapter 85, which governs classification according to National Electrical Manufacturers Association lamp types, as follows:

• 8539.50.0010 -- NEMA types A, BT, P, PS or T
• 8539.50.0020 -- NEMA types B, BA, C, CA, DC, F, G or ST
• 8539.50.0030 -- NEMA types R, BR or PAR
• 8539.50.0040 -- NEMA types MR11, MR16 or MRX16
• 8539.50.0050 -- Straight linear tube LED lamps
• 8539.50.0090 -- Other LED lamps

The text of heading 8539 is amended so it now refers to LED lamps. Subheading 8543.70.70, which covers “other” electric luminescent lamps (i.e., not specified elsewhere in Chapter 85), is renumbered to subheading 8543.70.71.

Aircraft equipment. Subheadings 8543.70.42 and 8543.70.45, which cover flight data recorders and other electric synchros and transducers and defrosters and demisters with resistors for aircraft, are corrected so they now include SPI “C” for the Civil Aircraft Agreement in the special rate of duty column.