CLA-2 CO:R:C:G 085422 JMH
Mr. Joseph Mendelson
Project Manager
GEA Power Cooling Systems, Inc.
10240 Sorrento Valley Road
San Diego, California 92121
RE: Steam Condensers from South Africa
Dear Mr. Mendelson:
Your letter of August 29, 1989, requesting a classification
and importation ruling under the Harmonized Tariff Schedule of
the United States (HTSUSA) for the steam condensers manufactured
by your GEA facility in South Africa has been referred to this
office for a reply.
FACTS:
The merchandise in question are steam condensers to be
imported from the Union of South Africa. The steam condensers
are to be used with large steam boilers which are employed by
large electric utilities in power generation. Arrays of these
condensers condense steam for reuse within the boilers.
The steam condensers are made from standard steel tubes,
ASTM ST-214 alloy, purchased locally in South Africa. The steel
is reworked into a proprietary elliptical shape by a GEA plant
within South Africa. Steel fins, made by GEA in South Africa or
imported from West Germany, are attached to the elliptical shape.
The finned elliptical tubes are then galvanized, formed, trimmed
and inserted into a steel frame section which incorporates header
nozzles and sidewalls. The steel frame sections are later
assembled into the array format.
-2-
ISSUES:
Under which heading of the Harmonized Tariff Schedule of the
United States (HTSUSA) should the steam condensers be classified
and whether U.S. sanctions against the Union of South Africa
apply to these goods.
LAW AND ANALYSIS:
The classification of merchandise under the HTSUSA is
governed by the General Rules of Interpretation (GRI's). 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..." The relevant heading in
this case is 8404, HTSUSA. This heading describes:
8404 Auxiliary plant for use with boilers of
heading 8402 or 8403...condensers for steam
or other vapor power units; parts thereof...
8404.20.00 Condensers for steam or other vapor
power units...
Since the goods are imported from South Africa, the question
arises whether the goods are excluded from entry into the United
States pursuant to the Comprehensive Anti-Apartheid Act of
October 2, 1986 (Pub. L. 99-440). "No article which is grown,
produced, manufactured, marketed, or otherwise exported by a
parastatal organization of South Africa may be imported into the
United States.." South African Transactions Regulations, 31 CFR
545.208(a) (1988). According to the latest State Department
listing, GEA Power Cooling Systems, Inc. is not a parastatal
organization. Therefore, the condensers are not excluded by
these regulations.
Importation of certain steel and iron products from South
Africa is prohibited, regardless of the producer. 31 CFR 545.206
(1988). The U.S. Customs Headquarters Unclassified Telex 00438
of January 12, 1989, lists all affected HTSUSA headings.
Heading 8404, HTSUSA, is not included on the list. Thus, the
assembled steam condensers are not prohibited from entry into the
U.S.
HOLDING:
The steam condensers imported from South Africa are not
prohibited from importation into the United States pursuant to
the Comprehensive Anti-Apartheid Act of 1986. The steam
-3-
condensers are classifiable within subheading 8404.20.00,
HTSUSA. The rate of duty is 7 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division