CLA-2 CO:R:C:M 952792 LTO
Mr. B. Major
Major Diversities Inc.
5601 Gray Street
Arvada, Colorado 80002
RE: Refrigerant Recovery Systems; filtering machinery;
compressors; Section XVI, Note 3; EN 84.21
Dear Mr. Major:
This is in response to your letter of October 6, 1992,
requesting the classification of refrigerant recovery systems
under the Harmonized Tariff Schedule of the United States
(HTSUS).
FACTS:
The articles in question are several models (1/2 HPCA, 1/2
HPC, 1000CAB, D1/2 HPC, D1000CA, D1000CB, D1000CAB, 2000C and
D3000C) of refrigerant recovery systems. They are used to
recover and/or recycle refrigerants from refrigerating and air
conditioning machines. The units that perform only the recovery
function are generally used to draw out the refrigerant when
repairing a machine. The refrigerant is put back into the
machine after it has been repaired. Those units that also
perform the recycling function are necessary when the refrigerant
will be stored or used elsewhere, rather than being placed back
into the same machine.
Models D1000CB, 2000C and D3000C draw the refrigerant out of
the machines, remove entrapped oil and then deliver the
refrigerant to external storage cylinders. Other equipment must
be used to perform any further cleansing of the contaminants.
Recovery is effected by a compressor, which is the main
constituent of these models. In addition to the compressor, each
unit includes a heat exchanger which causes the refrigerant to - 2 -
vaporize, leaving behind entrapped oils that have a higher
boiling point.
Models 1/2 HPCA and 1/2 HPC (which are the same except that
the first is specially designed for recovery of refrigerant from
automobiles), and Model D1/2 HPC are single machines that recover
and recycle refrigerant at the same time. The recycling involves
the removal of remaining impurities, such as acids and other
particulates. Their removal is effected by filters within the
units.
Models 1000CAB and D1000CAB are combinations of recovery and
recycle units. In these models, the recovery unit can be used by
itself, but because it takes its power from the recovery unit,
the recycle unit cannot. The recycle unit has a 9-prong plug
that fits the recovery unit's socket.
Model D1000CA performs only the recycling function. It can
be used with the D1000CB.
ISSUE:
Whether the refrigerant recovery systems are classifiable as
compressors under heading 8414, HTSUS, or as filtering machinery
under heading 8421, HTSUS.
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 articles in question can be broken down into the
following groups: (1) recovery units--Models D1000CB, 2000C and
D3000C; (2) recycling unit--Model D1000CA; (3) single units that
recover and recycle--Models 1/2 HPCA, 1/2 HPC and D1/2 HPC; and
(4) combinations of recovery and recycling units--Models 1000CAB
and D1000 CAB.
The Group 1 units draw refrigerant out of machines, and at
the same time remove entrapped oil. They then deliver the
refrigerant to external storage cylinders. Refrigerant recovery
is effected by a compressor. A heat exchanger causes the
refrigerant to vaporize, leaving behind entrapped oils (but not
other impurities). Any further cleansing of contaminants must be
accomplished by other equipment.
- 3 -
Note 3 to Section XVI states that "machines adapted for the
purpose of performing two or more complementary or alternative
functions are to be classified as if consisting only of that
component or being that machine which performs the principal
function." The principal function of the Group 1 units is the
recovery of refrigerant. The component which performs this
function is the compressor.
Heading 8414, HTSUS, provides for air or vacuum pumps, air
or other gas compressors. Specifically, the Group 1 units are
classifiable under subheading 8414.80.20, HTSUS, which provides
for other gas compressors.
The Group 2 unit performs only a recycling function.
Heading 8421, HTSUS, provides for filtering or purifying
machinery and apparatus for liquids or gases.
The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Co-operation
Council's 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 generally
indicative of the proper interpretation of these headings. EN
84.21, pg. 1181, states that this heading covers "filters and
purifiers of all types (physical or mechanical, chemical,
magnetic, electro-magnetic, electrostatic, etc.)." The Group 2
unit is classifiable under subheading 8421.29.00, HTSUS, which
provides for other liquid filtering or purifying machinery and
apparatus.
The Group 3 units are single machines which perform both the
recovery and the recycling function at the same time. The Group
4 units are combinations of one recovery unit and one recycling
unit. The units are fitted together by means of a 9-prong plug
found on the recycling unit that fits into a socket found on the
recovery unit.
According to Note 3 to Section XVI, the Group 3 units must
be classified as if consisting only of that component which
performs the units' principal function. As for the Group 4
units, the Explanatory Note to Note 3 to Section XVI, pg. 1133,
states that "[c]omposite machines consisting of two or more
machines or appliances of different kinds, fitted together to
form a whole, consecutively or simultaneously performing separate
functions which are generally complementary and are described in
different headings of Section XVI, are also classified according
to the principal function of the composite machine [underlining
added]."
- 4 -
The units that perform only the recovery function are used
to draw out the refrigerant when repairing a machine. The
refrigerant is put back into the machine after it has been
repaired. Those units that also perform the recycling function
are necessary when the refrigerant will be stored or used
elsewhere, rather than being placed back into the same machine.
The purpose of the units that perform the recycling function is
to cleanse the refrigerant of contaminants so that it is suitable
for reuse.
It is our opinion that the recycling function is the
principal function of the Group 3 and the Group 4 units. Thus,
these units are classifiable as filtering machinery under
subheading 8421.29.00, HTSUS.
HOLDING:
The recovery units (Models D1000CB, 2000C and D3000C) 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.
The recycling unit (Model D1000CA), the single units that
recover and recycle (Models 1/2 HPCA, 1/2 HPC and D1/2 HPC) and
the combinations of recovery and recycling units (Models 1000CAB
and D1000CAB) are classifiable under subheading 8421.29.00,
HTSUS, which provides for "filtering or purifying machinery and
apparatus, for liquids or gases . . . [f]iltering or purifying
machinery and apparatus for liquids . . . [o]ther." The
corresponding rate of duty for articles of this subheading is
3.9% ad valorem.
Sincerely,
John Durant, Director