Industrial Shredders Best Classified as 'Other' Machines, Argues Government at Trade Court

Industrial shredders should be classified as "Other machines and mechanical appliances... other," dutiable at 2.5% rather than as duty-free machines for "mixing, kneading, crushing, grinding, screening, sifting, homogenizing, emulsifying or stirring,” argued the DOJ in a Jan. 25 cross-motion for summary judgment at the Court of International Trade (Vecoplan v. United States # 20-00126).

The case concerns single-shaft rotary size-reduction machinery used in the recycling and waste management industry and imported by Vecoplan from its parent company in Germany. The entries at issue occurred between 2018 and 2020. Customs liquidated the entries under subheading 8479.89.94 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 2.5%. 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" (see 2211150036).

The primary function of the machines is neither "mixing, kneading, crushing, grinding, screening, sifting, homogenizing, emulsifying or stirring" as required by the HTSUS description, argued the DOJ. The machines at issue "shred and cut" argued the DOJ, pointing to two patents held by Vecoplan covering designs for the machines at issue. One patent covers a “shredder" and the other a “shredder with multi-point cutters.”

The DOJ has asked the court to deny Vecoplan's motion for judgment and instead grant judgment to the government by classifying the shredders as "other" machines.