Monday, November 30, 2009

Section XVI of the HTSUS

Thank you for joining us for our series on classification. Last week, we explored the articles contained in Section XV of the HTSUS. Today, we will study the various commodities covered in Section XVI of the HTSUS. Having a good general knowledge of the products covered in each section and chapter will expedite the classification process and improve accuracy of your classifications.

Answer to Section XV Question
Classify a brass showerhead
Correct Answer: 7418.20.1000

Additional Information: NY R01416

As one of the largest sections of the HTSUS, Section XVI covers Chapters 84 and 85 consisting of machinery, mechanical appliances and electronics. This section and the two chapters it contains can be very confusing, even for experienced classification specialists. Pay close attention to the exclusions found in the Section Notes, especially 1 (g) for parts of general use.

Many of the parts for the machines classified in Chapters 84 and 85 are also specifically found in these chapters. For example, a hydraulic pump might include a solenoid valve. Should the valve be classified as a hydraulic pump part under 8413.91.9050 or as a solenoid valve under 8481.80.9005? According to GRI 1 and Section XVI Note 2(a), the valve should be classified in its respective heading even if it is a part of a pump. Products in this section, specifically Chapter 85, may require compliance with FCC guidelines.

Easily one of the largest chapters in the HTSUS, Chapter 84 covers a wide variety of machinery, equipment and parts. Articles of this chapter include engines, pumps, forklifts, hand power tools, calculators, computers, valves, bearings and other products. Certain commodities, such as bearings, require extra detail on the commercial invoice. Commodities requiring additional information are found in 19 CFR 141.89.

Chapter 85 covers a wide variety of equipment powered by or involving the use of electricity. Products include electric motors, batteries, appliances, lighting, hair dryers, telephones, radios, switches, light bulbs and miscellaneous parts. The Chapter and Statistical Notes provide explanations of various electrical products such as printed circuits, integrated circuits, transceivers and others.

Note: Significant changes were made to Chapters 84 and 85 in January 2007. If you are reviewing CBE tests or binding rulings issued prior to 2007, you may find some discrepancies in HTS numbers.

Section XVI Question
Classify a hydraulic accumulator used on a forklift truck.


Join us next week for the answer to this week’s classification question and a discussion of Section XVII of the HTSUS. If there are any specific commodities or sections of the HTSUS that you would like to see discussed in this series, please feel free to post a comment or send your suggestions to
wizard@boskage.com

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