CLA-2 OT:RR:CTF:TCM H065720 DSR
Mr. Greg J. Grasher
Border Brokerage Co.
P.O. Box B
Blaine, WA 98230
RE: Revocation of NY 859202 (issued on January 18, 1991) regarding the tariff classification of the “Thermo Star” auxiliary vehicle heater unit
Dear Mr. Grasher:
The National Commodity Specialist Division of Customs and Border Protection (CBP) issued ruling NY 859202 on January 18, 1991, to Border Brokerage Co., regarding the classification of the “Thermo Star” auxiliary vehicle heater unit under the Harmonized Tariff Schedule of the United States (HTSUS). We have reconsidered this ruling and now believe that the classification of the Thermo Star auxiliary vehicle heater unit specified in NY 859202 is incorrect. This ruling sets forth the correct classification of the Thermo Star auxiliary vehicle heater unit.
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 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, Vol. 43, No. 50. No comments were received in response to the notice.
FACTS:
In NY 859202, the Thermo Star auxiliary vehicle heater unit was described as an auxiliary heating system used to heat and regulate heated coolant flow to a truck's cab, engine and fuel tank. The system does not rely upon the vehicle's engine for its source of heat. The complete system consists of the boxed unit with heater control module, cab mounted thermostat and function control panel, fuel metering pump with fuel filter, pickup pipe and fuel lines, solenoid control valve with check valve, exhaust pipe, wiring harness and installation kit and mounting hardware. It operates by drawing fuel from the vehicle’s tank into the combustion chamber. Simultaneously, the pump circulates cold engine coolant into the combustion chamber, where a heat exchanger heats it. The hot coolant is circulated back through the vehicle’s engine and HVAC heat exchanger. A blower circulates air over the HVAC heat exchanger, where it is then warmed, and the heated air is blown into the passenger compartment. In NY 859202, CBP determined that the merchandise was classified under subheading 7322.90.00, HTSUS, as an “air heater.”
ISSUE:
Whether the Thermo Star auxiliary vehicle heater unit is classified as an “air heater” of heading 7322, HTSUS, or as a “heat exchange unit” of heading 8419, 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 in this case are as follows:
7322 Radiators for central heating, not electrically heated, and parts thereof, of iron or steel; air heaters and hot air distributors (including distributors which can also distribute fresh or conditioned air), not electrically heated, incorporating a motor-driven fan or blower, and parts thereof, of iron or steel:
* * *
7322.90.00 Other, including parts.
* * *
7322.90.0015 Air heaters, not electrically heated, incorporating a motor- driven fan or blower
* * * *
8419 Machinery, plant or laboratory equipment, whether or not electrically heated … for the treatment of materials by a process involving a change in temperature such as heating …
* * *
8419.50 Heat exchange units:
* * *
8419.50.50 Other.
* * * *
In interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89 80, 54 Fed. Reg. 35127 (August 23, 1989).
The Explanatory Note to heading 7322, HTSUS, provides that an “air heater” transfers the heat given off by combustion gases passing through it to air traveling along its outer surface. The vehicle’s HVAC system then distributes the heated air through the vehicle. By comparison, the Explanatory Note to heading 8419, HTSUS, explains that heading 8419 excludes air heaters and hot air distributors covered by heading 7322, HTSUS, and covers machinery and plant designed to submit materials (solid, liquid and gaseous) to a heating or cooling process in order to cause a simple change in temperature.
Here, the subject heater does not transfer heat via its heat exchanger to any air traveling along its surface, as required by heading 7322, HTSUS. Instead, the heater directly submits the vehicle’s engine coolant to a heating process by circulating the coolant through the heater’s combustion chamber, where the coolant is heated by a heat exchanger. The hot coolant is then re-circulated through the vehicle’s engine and HVAC heat exchanger to preheat the engine and distribute heated air to the vehicle’s passenger compartment. Thus, it is now the position of CBP that the heater in NY 859202 is classified as a heat exchanger in heading 8419, HTSUS, which provides for “machinery, plant or laboratory equipment, whether or not electrically heated … for the treatment of materials by a process involving a change in temperature such as heating: Heat exchange units: Other.”
HOLDING:
By application of GRI 1, the subject merchandise identified as the Thermo Star auxiliary vehicle heater unit is classifiable under heading 8419, HTSUS. Specifically, it is classifiable under subheading 8419.50.50, HTSUS, which provides for “machinery, plant or laboratory equipment, whether or not electrically heated … for the treatment of materials by a process involving a change in temperature such as heating: Heat exchange units: Other.” The column one, general rate of duty is “free.” Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY 859202, dated January 18, 1991, is revoked with respect to the classification of the Thermo Star auxiliary vehicle heater system.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division