Issue 289, January 25, 2001
Determining the correct tariff classification of parts of an article can be one of the most difficult areas of Customs compliance. In fact, poor tariff classification has undone many companies that have undergone a Compliance Assessment. Classifying parts usually requires choosing between one or more HTSUS subheadings that describe the part itself, or other subheadings that cover parts or parts and accessories of another article. Recently, Customs notified the importing community of particular problems it has found in the classification of parts for machine tools. (See ABI Daily Message, Customs Electronic Bulletin Board, Jan. 19, 2001.) Many such parts are covered by HTSUS heading 8466, but Customs reports that there has been widespread misuse of this heading for parts properly classified elsewhere.

Heading 8466, by its own terms, covers "parts and accessories suitable for use solely or principally with the machines of headings 8456 to 8465, including work or tool holders, self-opening dieheads, dividing heads and other special attachments for machine tools." However, as with other types of parts, just because something will be used as a part or component of a machine tool does not mean it should be classified in 8466. Certain types of parts are excluded from classification in that heading by the section and chapter notes in the HTSUS. For example, parts which are specifically covered in chapters 84 or 85, such as pumps, wiring harnesses, motors, ball bearings, switches and pulleys, would be classified under the appropriate subheading in those chapters that covers the specific part rather than in 8466 (Section XVI note 2(a).) The Explanatory Notes state that these items are so classified "even if specially designed to work as part of a specific machine."

Also excluded from classification under 8466 is any part meeting the HTSUS definition of a part of general use. This term covers such items as springs, screws, nuts, bolts, and washers. Although they are parts, these items should be classified on their own rather than in 8466 (Section XVI note 1(g).) The same is true of grindstones and parts made of glass or ceramic (Chapter 84 note 1(a)-(c).)

While Customs has focused on the problems in classifying machine tool parts, the same problems are affecting all importers of original equipment and replacement parts for machines of all types. Importers of these types of products would be wise to review their tariff classifications carefully, with the help of a Customs expert if necessary, to ensure that they are not misapplying the rules for the classification of parts.

Our contributing writers, and Sarah M. Nappi, are attorneys at Ablondi, Foster, Sobin & Davidow p.c. and can be reach at 202-296-3355.

Please note that due to the complex nature of the subject matter, Danzas AEI cannot be responsible for actions taken by the reader in reliance on the information contained herein without prior consultation with Danzas AEI.