Study Guide

15. Part 4: The classification of parts and accessories

15.18. Note 2 to Section XVI — parts of machinery (Chapters 84 and 85)

There are five legal notes that allow for the classification of parts with their complete goods. Note 3 to Chapter 95 has already been discussed. The only other one addressed here is Note 2 to Section XVI.

Note 2 to Section XVI is lengthy and somewhat complex. If you can work through Note 2 to Section XVI, the other parts legal notes will present no difficulty.

Note

Note 2 to Section XVI relates to parts only. Some notes cover both parts and accessories (for example, Note 3 to Chapter 95). Care must be taken: unless accessories are specifically mentioned in a legal note, that note cannot be used to classify accessories. In Section XVI, unless accessories are specifically mentioned within the terms of any headings, they cannot be classified in Chapters 84 or 85.

Note 2 to Section XVI is made up of an introduction and three sub-notes. The full text is:

2.- Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classified according to the following rules:

(a) Parts which are goods included in any of the headings of Chapters 84 or 85 (other than headings 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in their respective headings;

(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 84.79 or 85.43) are to be classified with the machines of that kind or in heading 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29 or 85.38 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 85.17 and 85.25 to 85.28 are to be classified in heading 85.17, and parts which are suitable for use solely or principally with the goods of heading 85.24 are to be classified in heading 85.29;

(c) All other parts are to be classified in heading 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29 or 85.38 as appropriate or, failing that, in heading 84.87 or 85.48.

Introduction

Before applying sub-notes (a), (b), or (c), classifiers must satisfy certain prior conditions. The Note begins:

Note 1 to Section XVI lists goods excluded from the section. For example, Note 1(a) means that a rubber belt for a conveyor, if imported separately, cannot be treated as a part for classification purposes within Chapter 84, as it is excluded from the section. Similarly, Notes 1 to Chapters 84 and 85 contain exclusion provisions. Classifiers must confirm the part under consideration is not excluded before proceeding.

Note 2(a) to 2(c) a step-by-step hierarchy

Note 2 establishes a cascade of rules applied in order. Work through each step until the part finds a classification.

Step	Classification rule	Example
2(a)	Is the part described in its own right in a heading of Chapter 84 or 85? If yes, classify it in that heading. This takes precedence in all cases.	Example A valve (heading 84.81) or transmission shaft (heading 84.83) is always classified in its own heading, regardless of its end use.
2(b)	Is the part covered by a 'generic parts' heading, or is it used solely or principally with a particular machine or group of machines in the same heading? If a generic parts heading exists (e.g. 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29, 85.38), classify it there. If no such heading applies, classify the part with the complete machine, provided it is used solely or principally with that machine.	Example A mounting bracket specifically designed for leather-working machinery (heading 84.53) is not described in its own right anywhere in Chapters 84 or 85, so Note 2(a) does not apply. Also there is no generic parts heading that covers these goods. Because it is used solely or principally with machinery of heading 84.53, Note 2(b) directs classification within subheading 8453.90 (Parts).
2(c)	All other parts not covered by 2(a) or 2(b). If goods cannot be classified by either 2(a) or 2(b) then classify in the residual headings: 84.87 (Chapter 84) or 85.48 (Chapter 85). These cover parts of machines that cannot be attributed to any particular machine.	Example: Oil seal rings — Note 2(c) to Section XVI Oil seal rings may be used in a variety of machines classified in Chapter 84. They are rubber rings housed in metal reinforcement, used to prevent leaks. They are not excluded from Chapter 84 by Note 1 to Section XVI or Note 1 to Chapter 84. They are not described in any one heading, so Note 2(a) to Section XVI does not apply. They are not covered by a generic parts heading and are not designed solely or principally for one particular machine, so Note 2(b) does not apply. Therefore, Note 2(c) to Section XVI directs that the goods are classified within heading 84.87.