CLA-2 RR:CR:GC 961196 JAS
Mr. William H. Steere
Carrier Corporation
P.O. Box 4800
Syracuse, NY 13221
RE: Absor ption Liquid Chiller/Heater; Liquid Chilling System, Ap paratus for Producing Chilled Water and Hot Water for Space Heating and Cooling in Commercial Buildings; Oil or Gas Fired Apparatus Principally Used for Producing Chilled Water; Refrigerating Equipment, Heading 8418, Parts of Air Conditioning Machines, Heading 8415; Section XVI, Note 2; NY 825406, NY 852437, HQ 952361, HQ 962279
Dear Mr. Steere:
In a letter to Customs National Commodity Specialist
Division, New York, dated November 14, 1997, you inquire as to
the tariff classification under the Harmonized Tariff Schedule of
the United States (HTSUS) of the Carrier 16DF070 Direct-Fired
Absorption Liquid Chiller/Heater.
You cited several administrative rulings in which similar
merchandise was classified in different provisions. As we have
informed you, it was necessary to resolve this apparent conflict.
This process has now been completed and we are in a position to
address your ruling request.
FACTS:
Submitted literature describes the Carrier 16DF070
absorption liquid chiller/heater as a natural gas-fired apparatus
used to produce chilled water and hot water for space cooling and
heating applications in commercial buildings. Cooling-to-heating
changeover is accomplished by activating an internal control
valve. The apparatus consists essentially of one low-stage and
one high-stage generator, a burner assembly, condenser,
evaporator, absorption unit, heat exchanger, and control center.
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It has no fan. The literature and other evidence of record leads
us to conclude that the principal purpose of a complete
absorption chiller/heater is to produce chilled water. The
operation involves heating a solution of water and lithium
bromide in which the lithium bromide vaporizes and the water
remains behind. A series of condensing and evaporating steps
progressively removes more and more of the heat from the water.
Chilled water produced by this apparatus is pumped directly to
the building's cooling/heating circulation system. Fans or
blowers in the building's master system, or in individual room
units, distribute the coolness. Humidity is added by
condensation as hot air passes over cooler fins in the room
units. Available information is that a complete liquid chiller
of the type in issue can produce chilled water as low as 43
degrees F.
You contend that the liquid chiller in issue is apparatus of
heading 8418 because it refrigerates, that is, makes something
cold or chilly. As such, it is within the common meaning of the
term refrigerating for tariff purposes. Moreover, several of the
devices enumerated statistically under subheading 8418.69.00,
HTSUS, do not operate in a continuous cycle of operations, of low
temperatures (in the region of 0 degrees C or less), previously
considered necessary for refrigerating and freezing applications,
so that true refrigerating equipment need not necessarily operate
in that temperature range.
The provisions under consideration are as follows:
8415 Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity...; parts thereof:
8415.81.00 Incorporating a refrigerating unit and a valve for reversal of
the cooling/heat cycle
8415.82.00 Other, incorporating a refrigerating unit
8415.90 Parts:
8415.90.80 Other
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* * * *
8418 ...other refrigerating or freezing equipment, electric or other;...parts thereof:
8418.69.00 Other
ISSUE:
Whether an absorption liquid chiller/heater, as described,
is refrigeration equipment of heading 8418.
LAW AND ANALYSIS:
Under General Rule of Interpretation (GRI) 1, Harmonized
Tariff Schedule of the United States (HTSUS), goods are to be
classified 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.
Section XVI, Note 2, governs the classification of goods that are
identifiable as parts of machines or apparatus of Chapter 84 or
Chapter 85. Parts which are goods included in any of the
headings of Chapters 84 and 85 are in all cases to be classified
in their respective headings. See Note 2(a). Other parts, if
suitable for use solely or principally with a particular machine,
or with a number of machines of the same heading, are to be
classified with the machines of that kind. See Note 2(b).
The Harmonized Commodity Description and Coding System
Explanatory Notes (ENs) constitute the official interpretation of
the Harmonized System. While not legally binding, 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).
In one of the rulings you cite, HQ 952808, dated February
16, 1993, heading HTS 8418, other refrigerating or freezing
equipment, was essentially eliminated from consideration, based
on certain ENs for that heading. Those notes stated that the
equipment of heading 8418 in the main produces low temperatures
(in the region of 0 degrees C or less) at the active cooling
element. Information available to us at the time indicated that
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absorption liquid chillers using lithium bromide as the absorbent
produce water temperatures as low as 43 degrees F (8 degrees C),
a temperature which the industry does not recognize as required
for refrigeration.
However, we note the term refrigeration is not defined by
any legal note in the HTSUS and the temperature range stated in
the heading 8418 ENs i.e., in the region of 0 degrees C or less,
applies to the equipment "in the main." We note as well that the
8418 ENs describe Absorption Type Refrigerators on p. 1268, and
on p. 1269 list as apparatus of the foregoing kind refrigerated
water or beverage fountains and beer coolers. Neither of these
apparatus operates in a continuous cycle of operation in the
region of 0 degrees C or less. Similarly, in HQ 952361, dated
August 18, 1992, temperature-controlled wine storage units were
classified in an appropriate subheading of heading 8418. Thus,
the referenced ENs describe the absorption liquid chillers in
issue, but do not necessarily preclude classification in heading
8418 of such apparatus, even if they do not operate in a
continuous cycle of operation in the region of 0 degrees C or
less. We note that HQ 952808 was revoked by HQ 962279, dated
December 23, 1998, which classified an absorption liquid chiller
as other refrigerating equipment, in subheading 8418.69.00,
HTSUS. See also NY 825406, dated January 13, 1988, and NY
852437, dated May 21, 1990.
Where not defined in an HTSUS section or chapter note or in
an appropriate EN, tariff terms are to be construed according to
their common and commercial meanings, which are presumed to be
the same. How a term is used within an industry has been
regarded as a particularly authoritative source of its common
meaning. The 1998 ASHRAE handbook REFRIGERATION, published by
the American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc., states in the introductory language
of Chapter 43 under LIQUID CHILLING SYSTEMS, that the most
frequent application for liquid chilling systems is for air
conditioning systems, although both brine cooling for low-temperature refrigeration and chilling of fluids in industrial
processes are also common. This source also states that in the
refrigeration cycle of modern water-lithium bromide chillers,
chilled water enters the cooler at 54 degrees F, for example, and
leaves at 44 degrees F. From this, we can reasonably conclude
that apparatus which produces chilled water at 44 degrees F is
regarded as refrigerating equipment for purposes of heading 8418.
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HQ 952808 was revoked primarily because of its erroneous
conclusions with respect to heading 8418. Nevertheless, while an
absorption chiller/heater, imported without fans, is not an
incomplete or unfinished air conditioning machine of heading
8415, it is still a part under that heading. But, because the
chiller/heater is also a good included in heading 8418, it must
be classified in that heading under the authority of Section XVI,
Note 2(a).
HOLDING:
Under the authority of GRI 1, HTSUS, the Carrier 16DF070
direct-fired, absorption liquid chiller/heater is provided for in
heading 8418. It is classifiable in subheading 8418.69.00,
HTSUS.
Sincerely,
John Durant, Director
Commercial Rulings Division