CLA-2 OT:RR:CTF:TCM H029003 JER
Robert J. Resetar
Porsche Cars North America, Inc.
980 Hammond Drive, Suite 1000
Atlanta, GA 30328
RE: Revocation of NY D88203; Fan Housing from Germany
Dear Mr. Resetar:
On March 23, 1999, U.S. Customs and Border Protection (“CBP”) issued New York Ruling Letter (“NY”) D88203 to you on behalf of Porsche Cars North America, Inc., (“Porsche”) classifying certain “automotive fan housings” in subheading 8708.99.80, of the Harmonized Tariff Schedule of the United States (“HTSUS”). CBP has recently received new information concerning the function and purpose of automotive fan housings (also known as “fan shrouds”). After reviewing NY D88203, we have found that ruling to be in error. For the reasons set forth in this ruling, we are revoking NY D88203.
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 subject automotive fan housing, (also referred to as a “fan shroud”), was described in NY D88203 as being made from injected molded plastic and mounted on the engine side of the vehicle’s radiator. Twin electric cooling fans are mounted onto the fan housing. According to our research, the radiator fan shroud or the cooling system fan shroud facilitate the functioning of the radiator or air cooling system by effectively directing the air over the radiator and throughout the engine compartment. See Discount Car Parts: Fan Shroud Description, at www.car-stuff.com. The fan shroud basically houses the fan blades and secures them in place. Id.
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 cooling system, 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, the instant fan housing (a.k.a. fan shroud) completes the fan assembly used in the air cooling system or radiator, and provides the structural mounting necessary to support the fan blades and the fan motor. Further, the shroud provides a means to direct the air flow produced by the fan blades to the vehicle’s radiator or air cooling system. Accordingly, the fan shroud is solely or principally used with an automotive fan which, in turn, operates with the radiator or air cooling system, 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 cooling system. 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 cooling systems 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), the subject automotive fan housing is classified in heading 8414, HTSUS. Specifically, the item is 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 D88203, dated March 23, 1999, 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