CLA-2 CO:R:C:M 951196 LTO
Assistant District Director
Commercial Operations Division
U.S. Customhouse
Interstate 87
Champlain, New York 12919
RE: Protest No. 0712-92-100016; Natural Gas Compressor
Assemblies; 8413; EN 84.14
Dear Sir:
This protest concerns the classification of natural gas
compressor assemblies under the Harmonized Tariff Schedule of the
United States (HTSUS).
FACTS:
The articles in question are natural gas compressor
assemblies. They are used to compress natural gas to high
pressure levels. The gas will then be stored in storage tanks.
Subsequently, the gas is dispensed into special tanks, which are
not subject to this protest, and mounted on automobiles that are
designed to run on natural gas.
The compressors were entered under subheading 8413.11.00,
HTSUS, which describes liquid pumps fitted with a measuring
device for dispensing fuel, of the type used in filling-stations
or garages. They were liquidated under subheading 8414.90.20,
HTSUS, which describes parts of gas compressors.
ISSUE:
Whether the articles in question are classifiable as liquid
pumps under Heading 8413, HTSUS.
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LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) to the HTSUS
govern the classification of goods in the tariff schedule. GRI 1
states in pertinent part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes . . . ."
The headings at issue are as follows:
8413 Pumps for liquids, whether or not fitted
with a measuring device . . .
* * * * * * * * * * * * *
8414 Air or vacuum pumps, air or other gas
compressors and fans . . .
The compressors cannot be classified under Heading 8413,
HTSUS, because they do not pump liquid. The protestant's own
exhibit states as follows: "Unlike gasoline which is a liquid
under atmospheric conditions, or propane which liquifies under
relatively low pressure, natural gas is not in a liquid phase in
the vehicle cylinders. As a result, it is necessary to compress
it to a high pressure in order to achieve an acceptable energy
density [underlining added]."
The Harmonized Commodity Description and Coding System
Explanatory Note (EN) to Heading 8414, pg. 1162, states that
"[t]his heading covers machines and appliances, hand-operated or
power driven, for the compression of air or other gases . . . ."
The articles in question are used to compress natural gas to high
pressure levels for storage in tanks. The protestant states, and
the additional information submitted reflects, that the articles
in question are not parts of compressors, but are complete gas
compressors with additional components. These components are
dispensers (or barricades), a recovery tank and miscellaneous
valves, fittings and stainless steel tubing. The articles in
question are clearly classifiable under Heading 8414, HTSUS,
specifically under subheading 8414.80.20, HTSUS.
HOLDING:
The natural gas compressor assemblies are classifiable under
subheading 8414.80.20, HTSUS, which provides for "[a]ir or vacuum
pumps, air or other gas compressors and fans . . . [o]ther,
except parts . . . [o]ther compressors." The corresponding rate
of duty for articles of this subheading is 3.4% ad valorem.
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The protest should be denied in full. A copy of this
decision should be attached to the Customs Form 19 and provided
to the protestant as part of the notice of action on the protest.
Sincerely,
John Durant, Director
Commercial Rulings Division