HQ 952404

October 19, 1992

CLA-2:CO:R:C:M 952404 JAS

CATEGORY: Classification

TARIFF NO.: 8458.19.00, HTSUS

Mr. Richard W. Leonhard

Southwestern Industries, Inc.

2605 Homestead Place

Rancho Dominguez, CA 90220

RE: Horizontal Lathe, Numerically Controlled; Heading 8458;

Machine Tool Minus Apron, Lead Screw, Gear Box, Hand Wheels

and Tool Compound; Unfinished Machine Tool for Working

Metal; Parts and Accessories of Machine Tools; Heading

8466

Dear Mr. Leonhard:

Your letters of July 2 and 13, 1992, to the Area Director of

Customs, New York Seaport, inquiring as to the tariff status of

the LUX-Matter 1540 horizontal lathe, imported from Taiwan minus

various components, have been forwarded to this office for reply.

Our ruling follows.

FACTS:

The merchandise in issue is a manually operated horizontal

lathe. It is imported without certain components but is said to be

fully functional. The machine tool in issue will be completed in

the United States by adding the following components with their

cost or value in parenthesis: computer numerical control (\$1200),

double wall apron fabricated from sheet metal and handwheel

assembly (\$2000), two motors with servo drive (\$800), ballscrews

(\$1200). You estimate the cost of assembling these components with

the imported components at \$2100.

You state that the lathe is not numerically controlled and

has not been prepared to accept numerical. control. Its surfaces

have not been faced, i.e., machined to allow for the future

mounting of drive motors and feedback devices required for

numerical control. It is indicated that multiple holes must be

drilled or tapped in order to install the numerical control. A

separate channel will also be carved out near the carriage for oil

lines.

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Engine lathes or toolroom lathes are principally used in the

United States in small shops for turning operations, i.e.,

removing metal from the outside diameter of small parts.

ISSUE:

Whether the imported merchandise comprises an unfinished lathe

of heading 8458 for tariff purposes.

LAW AND ANALYSIS:

Merchandise is classifiable under the Harmonized Tariff

Schedule of the United States (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 2(a) states in part that any reference in a heading to

an article includes a reference to the article incomplete or

unfinished, provided that, as entered, the incomplete or

unfinished article has the essential character of the complete or

finished article.

The function of an engine or toolroom lathe is to remove

metal from the outside diameter of a workpiece. Such lathes must

have at least certain basic components such as the bed, head-stock,
tailstock, carriage and cross slide, all referred to

collectively as the machine\'s \"iron.\" In operation, the workpiece

is held between a center on the tailstock and an appropriate work

holding device on the headstock spindle. The tool is secured to a

cross slide which is mounted on a carriage that moves

longitudinally along the bed of the machine.

The imported lathe includes all of the components necessary

to perform a turning function; it has the aggregate of distinctive

component parts that establish the article\'s identity as an engine

lathe. The imported article, therefore, has the essential

character of a lathe for removing metal of the type classifiable

in heading 8458. For this reason, it is not classifiable as a part

or accessory for a lathe.

Subheading 8458.11.00 provides for numerically controlled

horizontal lathes while subheading 8458.19.00 covers other

horizontal lathes. Numerical control enables a machine tool to

carry out machining operations according to a program of

numerically-coded instructions. The input data is interpreted by

the control system and transformed into mechanical movements of

the machine. The omitted parts indicate an intent to add numerical

control. However, as stated previously, there is no evidence that

the lathe, as imported, has been prepared in anyway to accept

numberical control. Thus, there is no

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issue of whether the imported lathe may be unfinished for purposes

of subheading 8458.11.00. This provision is eliminated from

consideration.

HOLDING:

Under GRI 1, the unfinished LUX-Matter 1540 horizontal lathe

is provided for in heading 8458. Actual classification is in

subheading 8458.19.00, HTSUS, as other horizontal lathes for

removing metal. The rate of duty on products from Taiwan is 4.4

percent ad valorem.

We are informed that machine tools from Taiwan classifiable

in subheading 8458.19.00 are not subject to quantitative

restraints. You may confirm this by writing directly to the

Director, Office of Agreements Compliance, Department of Commerce,

Washington, D.C. 20230. We are providing that office with a copy

of this ruling.

Sincerely,

John Durant, Director

Commercial Rulings Division