CLA-2 CO:R:C:M 955063 RFA
District Director of Customs
1000 Second Avenue
Suite 2200
Seattle, WA 98104
RE: Protest No. 3004-93-100061; Chloride Trap Reactor; Tanks,
Vats and Similar Containers; Headings 7309, 8419, and 8421;
EN 73.09
Dear District Director:
The following is our decision regarding the request for
further review of Protest No. 3004-93-100061, which concerns the
classification of Chloride Trap Reactors under the Harmonized
Tariff Schedule of the United States (HTSUS). The entry of the
subject merchandise was liquidated on April 9, 1993. The protest
was timely filed on May 4, 1993.
FACTS:
The chloride trap reactors are pressure vessels made of
carbon steel, which are used to remove chlorides from a stream of
hydrogen gas. The chloride trap reactors are filled with a
catalyst (not included) that absorbs the chlorides, inducing an
endothermic reaction (or generates heat). The hydrogen flows
through the reactors' in/out nozzles by pressure.
The merchandise was entered under subheading 8421.39.00,
HTSUS, as other filtering or purifying machinery and apparatus,
for liquids and gases, eligible for duty reduction under the
Canadian Free Trade Agreement (CFTA). The entry was liquidated
under subheading 8419.89.50, HTSUS, as other machinery, plant or
equipment for the treatment of materials by a process involving a
change of temperature, eligible for duty reduction under the
CFTA.
Classification of the merchandise under subheading
7309.00.00, HTSUS, as reservoirs, tanks, vats and similar
containers for any material, is also under consideration.
The subheadings under consideration are as follows:
7309.00.00: Reservoirs, tanks, vats and similar
containers for any material (other than
compressed or liquified gas), of iron or
steel, of a capacity exceeding 300 liters,
whether or not lined or heat insulated, but
not fitted with mechanical or thermal
equipment . . . .
Goods classifiable under this provision have a general,
column one rate of duty of 2.6 percent ad valorem. The
CFTA rate of duty is 1.3 percent ad valorem.
8419.89.50 Machinery, plant or laboratory equipment,
whether or not electrically heated, for the
treatment of materials by a process involving
a change of temperature such as heating,
cooking, roasting, distilling, rectifying,
sterilizing, pasteurizing, steaming, drying,
evaporating, vaporizing, condensing or
cooling. . .: [o]ther machinery, plant or
equipment: [o]ther: [o]ther. . . .
Goods classifiable under this provision have a general,
column one rate of duty of 4.2 percent ad valorem. The
CFTA rate of duty is free.
8421.39.00 . . .filtering or purifying machinery and
apparatus, for liquids or gases. . .:
[f]iltering or purifying machinery and
apparatus for gases: [o]ther. . . .
Goods classifiable under this provision have a general,
column one rate of duty of 3.9 percent ad valorem. The
CFTA rate of duty is free.
ISSUE:
Whether the chloride trap reactors are classifiable as other
filtering or purifying machinery and apparatus for gases, or as
other machinery or equipment for the treatment of materials by a
process involving a change of temperature, or as a reservoir,
tank or vat, of iron or steel, under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification shall be
determined according to the terms of the headings and any
relative section or chapter notes.
Based on the record, the chloride trap reactors are not part
of a larger mechanical or electrical apparatus which are
classifiable under chapters 84 or 85. Therefore, classification
of the subject merchandise is based upon its condition at the
time of importation. The chloride trap reactor is used in the
process of removing chlorides from hydrogen gas. The change in
temperature to remove chlorides from a stream of hydrogen gas is
the result of the chemical reaction of the catalyst which is
added after importation. The vat itself does not cause a change
in temperature, but is merely the means of housing the chemical
reaction.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Cooperation
Council's official interpretation of the HTSUS. While not
legally binding, 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. EN 73.09, page 1021,
states as follows:
These containers are normally installed as
fixtures for storage or manufacturing use, e.g., in
factories, chemical works, dye works, gasworks,
breweries, distilleries and refineries, and to a
smaller extent in houses, shops, etc. This heading
covers containers for any material other than
compressed or liquified gas. Containers for such gas
are classified in heading 73.11, irrespective of their
capacity. Containers fitted with mechanical or thermal
equipment such as agitators, heating or cooling coils
or electrical elements fall in Chapter 84 or 85.
On the other hand containers which have simply
been fitted with taps, valves, level gauges, safety
valves, manometers, etc., remain in this heading.
Because the subject merchandise is a container which is not
fitted with mechanical or thermal equipment, classification is
precluded under Chapter 84 or 85. Based upon EN 73.09, the
subject merchandise is classifiable under subheading 7309.00.00,
HTSUS, as a container of iron or steel.
The protestant argues that the subject merchandise should be
classified under heading 8421, HTSUS, because the chloride trap
reactors are chiefly used to filter or purify the hydrogen gas.
Classification under heading 8421, HTSUS, is precluded because
the subject merchandise does not filter or purify, but merely
contains or houses the hydrogen gas and the catalyst in order to
create a chemical reaction.
HOLDING:
For the foregoing reasons, the chloride trap reactors are
classifiable under subheading 7309.00.00, HTSUS, as reservoirs,
tanks, vats and similar containers.
Because the rate of duty under the classification indicated
above is more than the liquidated rate of duty, you should deny
the protest in full. In accordance with Section 3A(11)(b) of
Customs Directive 099 3550-065, dated August 4, 1993, Subject:
Revised Protest Directive, this decision, together with the
Customs Form 19, should be mailed by your office to the
protestant no later than 60 days from the date of this letter.
Any reliquidation of the entry in accordance with the decision
must be accomplished prior to mailing of the decision. Sixty
days from the date of the decision the Office of Regulations and
Rulings will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS and the public
via the Diskette Subscription Service, Lexis, Freedom of
Information Act and other public access channels.
Sincerely,
John Durant, Director