CLA-2 RR:CR:GC 958295 JAS
Kathleen M. Murphy, Esq.
Katten, Muchin & Zavis
525 West Monroe Street, Suite 1600
Chicago, Illinois 60661-3693
RE: Mounting Base and Enclosure for Marine Gas Turbine;
Fabricated Structural Components for Acoustic, Thermal and
Vibration Protection; Parts of Gas Turbines; Articles of
Iron or Steel, Subheading 7326.90.90, Bauerhin Technologies
v. U.S.; Section XVI, Note 2; HQ 955501 Revoked
Dear Ms. Murphy:
In HQ 955501, dated March 15, 1994, we responded to Internal
Advice 91/93, initiated by your client, General Electric Aircraft
Engines, through the District Director of Customs, Middleburg
Hts., Ohio, concerning the classification under the Harmonized
Tariff Schedule of the United States (HTSUS) of a fabricated
steel base and acoustic steel enclosure. In that ruling we
rejected the contention that these articles were classifiable as
parts of other gas turbines, in subheading 8411.99.90, HTSUS, and
held that they were classifiable as other articles of iron or
steel, in subheading 7326.90.90 (now 85), HTSUS.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C.
1625(c)(1)), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993),
notice of the proposed revocation of HQ 955501 was published on
October 18, 1995, in the Customs Bulletin, Volume 29, Number 42.
In that notice, Customs proposed an alternative
classification as structures and parts of structures of iron or
steel, in subheading 7308.90.95, HTSUS. We have thoroughly
reviewed all relevant materials in this case, and are now of the
opinion that subheading 8411.99.90, HTSUS, does, in fact,
represent the correct classification.
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FACTS:
Literature describes a gas turbine support structure or base
(the Base) and an acoustic steel structure (the Enclosure), both
fabricated essentially from carbon and stainless steel. These
articles were assembled in the United States with a simple-cycle,
two-shaft gas turbine into the LM 2500 Marine Propulsion System,
which functions as a power source for naval vessels.
The Base is a welded mounting base consisting of an 18 inch
high double webbed side and end beams and a 4 inch thick floor
made from top and bottom steel sheets separated by angles and
beams. The Enclosure is a four-sided structure with roof, all of
welded steel panels, and filled with an insulating material.
These articles weigh 48,500 lbs. with shock mounts and displace
315 x 104 x 77.5 inches of ship space.
The Base permits the gas turbine to be mounted in the
vessel's hold and affords anti-shock and vibration protection.
The Enclosure provides additional stabilization as well as
acoustic and thermal protection. It will be fitted after
importation with lighting, heating apparatus and doors, to permit
worker access to the turbine. The literature describes these
components as important in anti-submarine warfare as they reduce
the vessel's water-borne noise level and stabilize the turbine in
case of collision or torpedo attack. Noise attenuation is also
important for crew members working in the enclosed environment of
the vessel's hold.
In a submission, dated January 27, 1995, and at a meeting in
our office on June 15, 1995, you maintain that these components
are classifiable as other parts of gas turbines, in subheading
8411.99.90, HTSUS. The contention is that these are specially
designed and fabricated articles for use solely with the LM 2500
gas turbine Marine Propulsion System and have no other use, and
that the turbine cannot be considered safe and operational
without them. In submissions, dated July 20 and September 12,
1995, and in a submission in response to the October 18, 1995,
notice published in the Customs Bulletin, you maintain that these
components have mechanical characteristics that serve to qualify
them as parts for tariff purposes. Specifically, the 5-sided
Enclosure is said to form an inlet plenum at the front of the gas
turbine to direct air flow to the compressor section of
the unit at the necessary velocity and direction to permit the
turbine to function properly. The roof panel of the Enclosure is
fitted with a flexible attachment designed to connect the gas
turbine to the vessel's inlet air duct and ventilation system.
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In addition, the assembled Support Structure and Enclosure are
said to be fitted or designed to be fitted with hoses and
electrical cables to supply fuel and lubricants to the turbine
and with sensors and switches for de-icing, fire detection and
fire extinguishing equipment.
The provisions under consideration are as follows:
7308 Structures and parts of structures, of iron or steel:
7308.90 Other:
Other:
7308.90.95 Other...5.1 percent
* * * *
7326 Other articles of iron or steel:
7326.90 Other:
Other:
7326.90.85 Other...5.1 percent
* * * *
8411 Turbojets, turbopropellers and other gas
turbines:
Parts:
8411.99 Other:
8411.99.90 Other...3.4 percent
ISSUE:
Whether the Base and the Enclosure are parts of gas
turbines.
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LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) in accordance with the
General Rules of Interpretation (GRIs). GRI 1 states in part
that for legal purposes, classification shall be determined
according to the terms of the headings and any relative section
or chapter notes, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the official interpretation of
the Harmonized System. While not legally binding on the
contracting parties, and therefore not dispositive, the ENs
provide a commentary on the scope of each heading of the
Harmonized System and are thus useful in ascertaining the
classification of merchandise under the System. Customs believes
the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg.
35127, 35128 (Aug. 23, 1989).
As to the "parts" issue, you correctly state Customs
position that articles which are identifiable as parts of
machines or apparatus of Chapters 84 and 85 are classifiable in
accordance with Section XVI, Note 2, HTSUS. Specifically, Note
2(b) covers parts that are provided for in the same heading as
the machine or apparatus with which they are solely or
principally used. However, for Note 2(b) to be applicable, the
status of an article as a part must first be established.
In submissions dated January 29, 1996, and June 11, 1997,
you maintain that excessive vibrations and thermal expansion,
particularly in a marine environment, lead to misalignment of the
turbine's rotor with the vessel's drive train, a so-called "corn
cob effect." Thus, the gas turbine would almost immediately
self-destruct without the Base and Enclosure which provide the
structural stability that permits the gas turbine to operate
effectively. Articles that are integral, constituent components
of another article, without which that article could not operate
in its intended capacity, have been held to be parts under the
HTSUS. See United States v. Willoughby Camera Stores, Inc., 21
CCPA 322 (1933), Bauerhin Technologies Ltd. Et al v. United
States, Slip Op. 95-206 (Ct. Int'l Trade, decided December 26,
1995), aff'd. Slip Op. 96-1275 (Fed. Cir., decided April 2,
1997), and related cases.
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It is important that any announced rule of law be applied
carefully, in the context of the particular facts under
consideration. In this case, the Base and Enclosure are unique
articles of commerce the tariff status of which must be evaluated
in the context of their singular relationship with a gas turbine
to form the LM 2500 Marine Propulsion System. Based on the
particular facts of this case, it is Customs position that the
Base and Enclosure are integral, constituent and component parts
necessary to the completion of and proper operation of LM 2500
Marine Propulsion System.
HOLDING:
Under the authority of GRI 1, the Base and Enclosure,
entered unassembled, are provided for in heading 8411. They are
classifiable in subheading 8411.99.90, HTSUS.
HQ 955501, dated March 15, 1994, is revoked. In accordance
with 19 U.S.C. 1625(c)(1), this ruling will become effective 60
days after its publication in the Customs Bulletin. Publication
of rulings or decisions pursuant to 19 U.S.C. 1625(c)(1) does not
constitute a change of practice or position in accordance with
section 177.10(c)(1), Customs Regulations (19 CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Commercial Rulings Division