CLA-2 OT:RR:CTF:TCM H243584 ALS
Port Director
U.S. Customs and Border Protection
5600 Pearl Street
Rosemont, Illinois 60018
Attn: Gregory Swat, Import Specialist
RE: Application for Further Review Protest No. 3901-13-100286; Tariff Classification of a Radiator Assembly and WHL Radiator
Dear Port Director:
This letter is in reply to the Application for Further Review (“AFR”) of Protest number 3901-13-100286, filed March 21, 2013, on behalf of DENSO International America, Inc. (“DENSO” or “Protestant”). The Protest is against U.S. Customs and Border Protection’s (“CBP”) tariff classification of the above-referenced Radiator Assembly and WHL Radiator under subheading 8419.50.10 of the Harmonized Tariff Schedule of the United States (“HTSUS”).
FACTS:
Both the Radiator Assembly (DENSO model # 422133-15813J) and WHL Radiator (DENSO model # 422135-04803J) are described as a radiators used on John Deere® front-end loaders and bulldozers. They are composed of 80% aluminum, 10% plastic, and 10% steel, with the fins being of braised aluminum. DENSO entered the subject articles under HTSUS subheading 8431.49.9085 as other parts suitable for use solely or principally with a machine of HTSUS heading 8425-8430, specifically bulldozers of HTSUS heading 8429. Upon review, your office issued a Notice of Action to DENSO on August 31, 2013, notifying it that subject articles were thereby reclassified under HTSUS subheading 8419.50.10 as brazed aluminum heat exchange units.
ISSUE:
Are the Radiator Assembly (DENSO model # 422133-15813J) and WHL Radiator at issue here properly classified under HTSUS heading 8431 as “Parts suitable for use solely or principally with the machinery of headings 8425 to 8430”, or under HTSUS heading 8419 as “Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), 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, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; parts thereof)”?
LAW AND ANALYSIS:
Initially, we note that the Protest was timely filed on March 21, 2013, which is within 180 days of the date of the liquidation, September 28, 2012. See 19 U.S.C. §1514(c)(3). Additionally, CBP’s tariff classification of the merchandise is a protestable matter under 19 U.S.C. §1514(a)(2). Further Review of Protest No. 2704-12-103147 is properly accorded to the Protestant pursuant to 19 CFR 174.24(b).
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRI”) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (“ARI”). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings and any relative section or chapter notes.” In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, GRIs 2 through 6 may be applied in order.
The following headings and subheadings of the HTSUS are under consideration in this case:
8419 Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), 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, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; parts thereof:
8419.50 Heat exchange units:
8419.50.10 Brazed aluminum plate-fin heat exchangers………………………………
* * *
8431 Parts suitable for use solely or principally with the machinery of headings 8425 to 8430:
8431.49 Other:
8431.49.90 Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Note 2 to Section XVI, HTSUS, provides for, in pertinent part, the following:
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 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:
Parts which are goods included in any of the headings of chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;
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….
The Protestant contends that the Radiator Assembly and WHL Radiator are classifiable under HTSUS heading 8431 because they are “neither ‘machinery’ nor ‘plant or laboratory equipment’ as set forth under heading 8419.” The Protestant cites to GRI 3(a) in contending that heading 8431 “is more specific than” heading 8419. The Protestant also cites to CBP Ruling HQ 955546 (February 8, 1994) for the definition of “machine” as put forth in that ruling. CBP defined “machine” in HQ 955546 as “(1): an assemblage of parts that transmit forces, motion, and energy one to another in a predetermined manner; (2): an instrument (as a lever) designed to transmit or modify the application of power, force, or motion. Webster's Ninth New Collegiate Dictionary, p. 713 (1990).”
The Protestant further contends that the subject articles are “neither ‘an assemblage of parts’ nor ‘an instrument… designed to transmit or modify the application of power, force, or motion’”, and “cannot be said to qualify as ‘laboratory equipment’ as, by [their] very nature, [they are] not used in an [sic] a laboratory environment.” In stating that “plant equipment” is the only consideration left under heading 8419, the Protestant acknowledges that the radiators fit the definition of “heat exchange units” of subheading 8419.50, but argues that “that designation is subordinate to the superior language of [heading 8419] itself which limits the scope of the merchandise contained therein.”
We note that with respect to the scope of heading 8419, HTSUS, CBP has previously ruled that an auxiliary vehicle heater unit is to be classified under heading 8419. See CBP Ruling HQ H065718 (February 1, 2010). CBP has also previously classified radiators for commercial riding mowers in under heading 8419 rather than heading 8433, which provides for, among other things, parts of “grass or hay mowers”. See CBP Ruling NY N212217 (April 24, 2012).
Upon review of the Protestant’s arguments, we find that the subject articles are machinery for the treatment of materials by a process involving a change in temperature. In this case, the material being treated is water, anti-freeze liquid, or coolant, and the material is being heated or cooled. Moreover, we note that protestant’s reliance on GRI 3(a), which applies to goods that are prima facie classifiable under at least two headings, constitutes an admission that the subject merchandise is covered by the scope of heading 8419, HTSUS.
However, Protestant’s reliance on GRI 3 to resolve the instant classification matter is misplaced because the matter is controlled by the legal notes under GRI 1. Specifically, the instant question is resolved by operation of Section XVI Note 2(a), which specifically provides that parts which are goods included in any of the headings of chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings. The headings listed in the parenthetical above, including heading 8431, HTSUS, all specifically provide for parts of goods classified under other headings of Section XVI (e.g. parts of machinery of headings 8425 to 8430) rather than specific goods unto themselves (e.g. machinery for the treatment of materials by a process involving a change of temperature). Accordingly, merchandise cannot classified under these headings pursuant to Note 2(a) to Section XVI. Because the instant merchandise is prima facie classifiable under heading 8419, HTSUS, its classification is resolved by operation of Note 2(a) to Section XVI, and it is thus immaterial that the subject radiator and radiator assembly may eventually be used as parts of bulldozers and front-end loaders. Lastly, as the matter is resolved on the basis of GRI 1, there is no need to examine which of the headings at issue are “more specific” within the context of a GRI 3(a) analysis.
Therefore, the Radiator Assembly and WHL Radiator are properly classified under heading 8419, HTSUS, which provides for "Machinery, plant or laboratory equipment, whether or not electrically heated… for the treatment of materials by a process involving a change in temperature such as heating: Heat exchange units: Other."
HOLDING:
By virtue of GRIs 1 (Note 2(a) of Section XVI) and 6, the subject Radiator Assembly (DENSO model # 422133-15813J) and WHL Radiator (DENSO model # 422135-04803J) are properly classified under HTSUS heading 8419, and specifically under subheading 8419.50.10, HTSUS, which provides for: “Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), 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, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; parts thereof: Heat exchange units: Brazed aluminum plate-fin heat exchangers….” The general column one rate of duty, for merchandise classified under this subheading is 4.2%.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
The Protest should be DENIED in accordance with the LAW AND ANALYSIS above. A copy of this ruling should be attached to the CBP Form 19 or equivalent document and provided to the protestant as part of the notice of action on the protest.
Sixty days from the date of the decision the Office of International Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division