The tariff classification of a vaccine manufacturing plant from Sweden

NY I88430 December 6, 2002 CLA-2-84:RR:NC:1:103 I88430 CATEGORY: Classification TARIFF NO.: 8479.89.9798 Mr. Bill Julich Delmar International Inc. 147-55 175th Street Jamaica, NY 11434 RE: The tariff classification of a vaccine manufacturing plant from Sweden Dear Mr. Julich: In your letter dated November 6, 2002 on behalf of Aventis Pasteur you requested a tariff classification ruling. Your client intends to import 52 individual modules which, after assembly in the United States, will form a plant used in the production of vaccines. The various modules will contain the following vaccine manufacturing equipment: A fermentation suite containing an inoculation prep room, a harvest tank, and microfiltration and ultrafiltration systems; A purification suite containing centrifuges, vacuum dryers, a powder weighing station, a chromatography station, and various treatment and holding tanks; A conjugation suite containing reaction vessels for fragmentation/activation, amination/derivatization, and conjugation; Buffer prep, media and washing areas; Necessary piping, wiring, insulation, etc. Partially finished modules will initially be assembled together in Sweden to confirm fit and allow the plant to be tested. The plant will then be disassembled and imported into the United States on a single vessel which will unload the modules at the port of Philadelphia. After importation, the modules will be reassembled together on a site-poured concrete foundation with a basement which will contain a chiller, heat exchangers, pumps, and tanks necessary to create a working plant. The reassembly operation will also involve several fermentation units made in the United States and shipped directly to the assembly site. In addition, reverse osmosis, process control, and building automation equipment, again made in the United States, will be shipped to Sweden and then returned with the other modules. The reassembly process will be performed by a team consisting of 25 – 30 specialists supplied by the Swedish manufacturer, and is expected to take 14 – 16 weeks. Finally, a façade composed of brick, metal siding, and glass will be added to complete the construction of the vaccine manufacturing facility. According to documents submitted with your inquiry, the imported equipment represents approximately 92% of the value of the physical plant equipment. The applicable subheading for the 52 modules which comprise an incomplete vaccine production plant, imported in a single shipment through a single port, will be 8479.89.9897, Harmonized Tariff Schedule of the United States (HTS), which provides for machines and mechanical appliances having individual functions, not specified or included elsewhere (in chapter 84): other machines and mechanical appliances: other: other: other: other. The rate of duty will be 2.5 percent ad valorem. Depending on their condition as imported, the reverse osmosis, process control and building automation equipment, which are of U.S. origin, may be entitled to duty free or reduced duty status under subheading 9801.00.10, HTS or subheading 9802.00.80, HTS, provided these goods meet the eligibility requirements of either tariff provision. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Alan Horowitz at 646-733-3010. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division