Imported Size-Reduction Machinery Is Specifically Described in the HTS, Not 'Other,' Says Importer
Size-reduction machinery should be classified as duty-free machines for "crushing, grinding, or screening" rather than as "other electromechanical" machines, dutiable at 2.5%, importer Vecoplan said in a Nov. 14 motion for summary judgment at the Court of International Trade (Vecoplan v. United States # 20-00126).
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The single-shaft rotary size-reduction machinery is used in the recycling and waste management industry and imported from Vecoplan's parent company in Germany. The entries at issue occurred between 2018 and 2020. Customs liquidated the entries under subheading 8479.89.65 as "Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Other: Electromechanical appliances with self-contained electric motor," dutiable at 2.8%. Vecoplan argues that the correct classification is under the duty-free subheading 8479.82.00 as "... Mixing, kneading, crushing, grinding, screening, sifting, homogenizing, emulsifying or stirring machines."
Two other cases filed by Vecoplan seek the same result, so CIT designated the current case as a test case in 2021 (See 2104280055).
Vecoplan argued that the machines "operate by crushing, grinding, and screening," which is specifically named using plain language in the tariff schedule and, therefore, must be classified as such even though the machines also include a cutting function. Because the machines' origin, the German language version of the Harmonized System classification scheme, which indicates that these machines are included within the scope of subheading 8479.82, is also relevant, Vecoplan said. It also said labeling the machines as "shredders" has "obscured their true nature." Shredder is not a tariff term and has no bearing on the central issue of whether the machines are for "crushing, grinding, or screening" or "other."