CLA-2 OT:RR:CTF:TCM H027029 JER
Ms. Laurie Peach, National Customs Manager
American Honda Motor Co., Inc.
1919 Torrance Blvd
Torrance, CA 90501-2746
RE: Revocation of NY N014061; Automotive Fan Shrouds for Automotive Air Conditioner Condensers and Radiators
Dear Ms. Peach:
On July 25, 2007, U.S. Customs and Border Protection (“CBP”) issued New York Ruling Letter (“NY”) N014061 to you, on behalf of American Honda Motor Company Inc., (“American Honda”), classifying certain “automotive fan shrouds” in headings 8415, and 8708, of the Harmonized Tariff Schedule of the United States (“HTSUS”). In light of the additional information provided by your company and after reviewing NY N014061, we have found that ruling to be in error. For the reasons set forth below, we are revoking NY N014061.
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. §1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed revocation was published on December 10, 2009, in the Customs Bulletin, Volume 43, No. 50. No comments were received in response to this notice.
FACTS:
The facts as stated in NY N014061 are as follows:
The items in question are two fan shrouds used in the manufacturer of Honda automobiles. The first fan shroud, identified as an Air Conditioner Shroud (Part # 38615-P1E-A00), is constructed of steel and is used in the Honda Odyssey to, “protect elements of the air conditioner subassembly, including the fan and exterior condenser, from damage during operation of the vehicle.”
* * *
The second item is identified as a Radiator Shroud (Part # 19015-RBB-003) and is one of several components that make up the radiator cooling system used in certain Acura automobiles. The shroud is constructed of plastic and “…protect(s) the radiator fan (to) facilitate continued operation of the radiator.
Based on the information provided, CBP determined that the air conditioner shroud (Part # 38615-P1E-A00) was classified in heading 8415, HTSUS, and specifically in subheading 8415.90.80, HTSUS, as parts of an automotive conditioner. The radiator shroud (Part # 19015-RBB-003) was classified in subheading 8708.91.75, HTSUS, as parts of motor vehicles. Subsequent to the publication of NY 014061, American Honda discovered that certain facts concerning the two automotive shrouds had been misstated and acknowledged that only the protective function of the shroud was identified.
In your letter dated, March 20, 2008, you provide the following corrections to the facts considered in NY 014061:
These shrouds all serve two primary functions of ensuring that the air flow from electrically powered fans is circulated across the entire face of the vehicle radiator and condenser (thereby preventing “hot spots” that could otherwise impair the functioning of these components) and of serving as a mounting base for the fan motor and blades.
ISSUE:
Whether the subject merchandise is classifiable as a part of an automotive radiator, in heading 8708, HTSUS, as a part of an automotive air conditioning machine, in heading 8415, HTSUS, or as part of a fan, in heading 8414, HTSUS.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule 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, the remaining GRIs 2 through 6 may then be applied in order.
The HTSUS provisions under consideration are as follows:
8708 Parts and accessories of the motor vehicles of headings 8701 to 8705:
Other parts and accessories:
8708.91 Radiators and parts thereof:
8708.91.60 Parts:
For other vehicles:
8708.91.7000 Of cast iron…
8708.91.75 Other…
8414.90 Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof:
8414.90 Parts:
8414.90.10 Of fans (including blowers) and ventilating or recycling hoods…
8415 Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated; parts thereof:
8415.90 Parts:
8415.90.80 Other…
Note 2 to Section XVI, HTSUS, provides in pertinent part as follows:
Subject to note 1 to this section, note 1 to chapter 84 and 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 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517.
There is no dispute that pursuant to Note 2 (a) to Section XVI, HTSUS, the instant articles are parts which are not goods of headings of Chapters 84 or 85, HTSUS. However, each fan shroud completes the fan assembly used in the air conditioning condenser or the radiator, and provides the structural mounting necessary to support the fan blades and the fan motor. Further, each shroud provides a means to direct the air flow produced by the fan blades to the vehicle’s radiator or air conditioning condenser. Accordingly, each fan shroud is solely or principally used with an automotive fan which, in turn, operates with the radiator or air conditioning condenser, rather than as a part of the motor vehicle as a whole, under Note 2 (b) to Section XVI, HTSUS.
In NY E83687, dated July 30, 1999, CBP held that fan shrouds designed to house the fan blades within the engine compartment and used in an “electrodrive cooling system” were parts of a fan classified in heading 8414, HTSUS. We explained that the fan shroud components were not complete fans but instead were parts that will be assembled with other components to form a completed fan. Similarly, in Headquarters Ruling Letter (“HQ”) 966787, dated February 9, 2004, CBP classified a “fan shroud assembly” as a complete axial fan, in part, because the article consisted of: an axial fan, fan blades, fan shrouds, a temperature sensor, mounting brackets and its intended purpose was for use as a fan. In HQ 966787, the fan shroud assembly was mounted to and used with a central processing unit (“CPU”). HQ 966787 noted that the “fan shroud merely protects the fan and provides a conduit for air to be channeled” but did not alone impart a method for cooling the CPU. Likewise, although the “fan shroud assembly” of HQ 966787 was used in a broader application, classification under the more specific heading was preferred to a more general heading. See also, NY J86319, dated February 9, 2004 (which classified the aforementioned “fan shroud assembly” in heading 8414, HTSUS, and was later affirmed by HQ 966787).
Likewise, the instant fan shrouds complete the fan assemblies into an automobile’s radiator or air conditioner. It is a long-standing classification principle that “a part of [a] particular part is more specifically provided for as a part of the part than as a part of the whole.” C.F. Liebert v. United States, 287 F. Supp. 1009 (1968). Therefore, the shrouds are more immediately parts of fans then they are parts of radiators, air conditioners or automobiles as a whole. In keeping with the reasoning in C.F. Liebert, and previous rulings involving substantially similar merchandise, we find that the subject fan shrouds are classified as parts of completed fan in heading 8414, HTSUS.
HOLDING:
By application of GRI 1 and pursuant to Section XVI Note 2 (b), both the subject air conditioner fan shroud and radiator fan shroud are classified under heading 8414, HTSUS. Specifically, the items are classified under subheading 8414.90.10, HTSUS, which provides for “Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof: Parts: Of fans (including blowers) and ventilating or recycling hoods: Other.” The 2009, column one, general rate of duty is 4.7% ad valorem.
EFFECT ON OTHER RULINGS:
NY N014061, dated July 25, 2007, is hereby revoked. In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division