The tariff classification of a vertical lift module from Italy

N336007 October 30, 2023 CLA-2-84:OT:RR:NC:N1:104 CATEGORY: Classification TARIFF NO.: 8479.89.9599 Tiffany Domingo Wen-Parker Logistics 1975 Linden BlvdElmont, NY 11003 RE:  The tariff classification of a vertical lift module from Italy Dear Ms. Domingo: In your letter dated October 20, 2023, on behalf of SOHO Studio Corporation, you requested a tariff classification ruling. The Silo2 Multi-Column Vertical Lift Module (Silo2) is a configurable, automated vertical storage system which, as imported, will measure approximately 23 feet in height, 22 feet in width, and 12 feet at its base. As imported, this electromechanical system will include three storage columns (units), two internal access openings, and 130 sheet steel storage trays which are used within the storage units.  The Silo2 is designed for use in a warehouse or other industrial/commercial settings to automatically store and quickly retrieve goods. The system is also capable of performing inventory management through integration with the client’s own enterprise resource planning (ERP) software. The Silo2’s steel frame-like structure is composed of vertical load elements (uprights), horizontal connecting elements (beams), and structural reinforcing elements (bracing).  The system is equipped with horizontal supports to house the trays (tray holders). Trays are located on both sides of the vertical lift module (front and back).  A motorized vertical-lift mechanism is located in the center of the structure. The vertical lift module is operated from an incorporated command PC with a touchscreen monitor, located near the access openings in which the storage and retrieval operations occur.  The PC controls and monitors all handling operations. In each handling cycle the trays are retrieved from their storage cells and taken to the access openings using the vertical lift mechanism. When the storage/retrieval operation is finished, the trays are taken back to their pre-assigned location or to a new location based on the system’s vertical dimension check reading. A programmable logic controller (PLC) manages the handling of the Silo2 and allows the exchange of information with the overlying software layers through ICON Basic web-based management software.  This software allows the conversion of the movement lists requested by the user into elementary missions that can be carried out by the PLC.  The PLC moves the axes by directly piloting the relevant drives in a synchronized manner and in accordance with the instantaneous status of the vertical lift module, detected by a set of specific sensors also connected to the PLC. The Silo2 system will be imported unassembled.  In addition to the structural components and trays, the unassembled system will include gearboxes, lift motors, circuit breakers and fuse box isolators, contactors and motor protectors, electrical feeders, terminals, interface relay, push buttons, PLC, and other electronic components. Also included is the license for the ICON Basic software as well as a software interface module to enable communication between the client’s ERP and ICON Basic. Heading 8479, Harmonized Tariff Schedule of the United States (HTSUS), provides for machines and mechanical appliances having individual functions, not specified or included elsewhere in Chapter 84. As no other heading in the tariff covers the subject Silo2 system, and because it possesses an individual function, namely the automatic storage and retrieval of goods, it is classified under heading 8479, HTSUS. Due to the size of the Silo2 system, you state that the system will be imported complete but unassembled and will be assembled subsequent to importation into the United States. Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRIs, taken in order. As the Silo2 system will be delivered unassembled, GRI 2(a) applies. It provides: “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.”Furthermore, the Explanatory Notes to the Harmonized Commodity Description and Coding System (ENs) represent the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings.  The relevant EN here is Section V to Rule 2(a) (Articles presented unassembled or disassembled), which states:“The second part of Rule 2(a), provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport.” In accordance with GRI 2(a), the applicable subheading for the Silo 2 Multi-Column Vertical Lift Module will be 8479.89.9599, HTSUS, which provides for “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof:  Other machines and mechanical appliances: Other: Other: Other.” The rate of duty will be 2.5 percent ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/current. The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP. This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Arthur Purcell at arthur.purcell@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division