CLA-2 R:C:M 958018 LTO
Mr. William H. Steere
United Technologies Carrier
Carrier Parkway
P.O. Box 4800
Syracuse, New York 13221
RE: Vertical packaged air conditioning units; GRI 2(a); section
XVI, note 2,4; unfinished; functional unit; HQ 087077;
HQ 957130 modified
Dear Mr. Steere:
This is in response to your letter of April 19, 1995, to the
Customs office in New York, requesting the classification of a
Carrier 50 BR BZ vertical packaged air conditioning unit under
the Harmonized Tariff Schedule of the United States (HTSUS).
Your letter was referred to this office for a response. Pursuant
to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. 1625(c)(1)),
as amended by section 623 of Title VI (Customs Modernization) of
the North American Free Trade Agreement Implementation Act, Pub.
L. No. 103-182, 107 Stat. 2057, 2186 (1993), notice of the
proposed modification of HQ 957130, issued to you on November 9,
1994, was published on August 30, 1995, in the Customs Bulletin,
Volume 29, Number 35.
FACTS:
The vertical packaged air conditioning unit consists of an
evaporator fan coil, connecting tubing and compressor. The unit
connects to an outdoor air- or water-cooled condenser unit. The
indoor unit comprises approximately 70-80 percent of the value of
the complete, "split-system" air conditioner, but cannot function
without the outdoor unit. The 5 to 15 ton units are used in
office buildings, light industrial, restaurant or retail
applications. Different control systems are offered. - 2 -
ISSUE:
Whether the vertical packaged air conditioning unit, an
indoor unit for a split-system air conditioner, is classifiable
as a part of an air-conditioning machine under subheading
8415.90.80, 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 . . . ."
Note 4 to section XVI, HTSUS, concerns the classification of
"functional units" under the tariff schedule. The note provides,
in pertinent part, that "[w]here a machine (including a
combination of machines) consists of individual components . . .
intended to contribute together to a clearly defined function
covered by one of the headings in chapter 84 or chapter 85, then
the whole falls to be classified in the heading appropriate to
that function."
Split-system air conditioners consist of two units that,
when imported together, contribute together to a clearly defined
function described by heading 8415, HTSUS, which provides for
air-conditioning machines, comprising a motor-driven fan and
elements for changing the temperature and humidity. Accordingly,
split-system air conditioners, which incorporate refrigerating
units, are classifiable under subheading 8415.82.00, HTSUS, while
those that do not incorporate refrigerating units are
classifiable under subheading 8415.83.00, HTSUS
The vertical packaged air conditioning unit, when imported
separately, is not described by the terms of heading 8415, HTSUS,
as it, by itself, is not capable of "changing the temperature and
humidity." Moreover, because complete split-system air
conditioners are classifiable as "functional units," neither the
indoor, vertical packaged air conditioning unit, nor the outdoor
condenser unit, can be classified according to GRI 2(a) as an
"unfinished" air-conditioning machine. See HQ 087077, dated
March 27, 1991 (wherein we stated that there are no HTSUS legal
notes or ENs that provide for "unfinished" functional units).
Finally, as the vertical packaged air conditioning unit is not a
"good included" in any chapter 84 or 85 heading, it is
classifiable as a part of an air-conditioning machine under
subheading 8415.90.80, HTSUS. See Section XVI, note 2(a)(b),
HTSUS.
In HQ 957130, we considered the classification of air
conditioners for buses, imported in various configurations. One
of the configurations concerned the - 3 -
importation of self-contained evaporator and condenser units for
these air conditioners. These units were classified according to
note 4 to section XVI, HTSUS, under subheading 8415.83.00, HTSUS.
The evaporator and condenser units are components of a system
that is designed to include a compressor, and cannot function
without it. As stated above, because complete split-system air
conditioners, such as the bus air conditioning system, are
classifiable as "functional units," the evaporator and condenser
unit, which do not form a complete air conditioning machine,
cannot be classified according to GRI 2(a) as an "unfinished" air
conditioning machine. Accordingly, both are classifiable, as
parts, under subheading 8415.90.80, HTSUS.
HOLDING:
The vertical packaged air conditioning unit is classifiable
under subheading 8415.90.80, HTSUS, which provides for parts of
air-conditioning machines. The corresponding rate of duty for
articles of this subheading is 2% ad valorem.
In accordance with 19 U.S.C. 1625(c)(1), this ruling will
become effective 60 days after publication in the Customs
Bulletin. Publication of rulings or decisions pursuant to 19
U.S.C. 1625(c)(1) does not constitute a change of practice or
position in accordance with section 177.10(c)(1), Customs
Regulations (19 CFR 177.10(c)(1)).
Sincerely,
John Durant, Director
Tariff Classification Appeals Division