CLA-2 OT:RR:CTF:TCM H242032 ALS
Port Director
U.S. Customs and Border Protection
112 W. Stutsman
Pembina, North Dakota 58271
RE: Application for Further Review Protest No. 3401-12-100109; Tariff classification of Control Modules for Fuel Injection Engines
Dear Port Director:
This letter is in reply to the Application for Further Review (“AFR”) of Protest number 3401-12-100109, filed December 3, 2012, on behalf of GCL Diesel Injection Service (“GCL” or “Protestant”). The Protest is against U.S. Customs and Border Protection’s (“CBP”) tariff classification of four distinct control modules for fuel injection engines under subheading 8413.91.10 of the Harmonized Tariff Schedule of the United States (“HTSUS”).
FACTS:
The articles at issue are described as used diesel fuel injectors (“injector cores”), Injection Driver Modules (“IDM cores”), High Pressure Oil Pumps (“HPOP cores”), and Fuel Injection Control Modules (“FICM cores”). Your office agrees with the Protestant that the injector cores are properly classified under HTSUS subheading 8481.80.90 as other control valves designed for proportional operation by a signal from a control device with electrical or electro-hydraulic actuators. Your office also agrees with the Protestant that the HPOP cores are properly classified under HTSUS subheading 8413.30.10 as fuel-injection pumps for compression-ignition engines. We therefore focus our review on the IDM cores and FICM cores.
The IDM cores control the timing and quantity of fuel delivered to the cylinders of the engine to which they are mounted. They are comprised of electronic components that receive signals from a Powertrain Control Module (PCM). The IDM cores read the signals to determine when and how long to send a 90-volt signal to the fuel injectors to achieve the correct fuel quantity at the correct time in the combustion chamber.
The FICM cores control the timing and quantity of fuel delivered to the cylinders of the engine to which they are mounted. They are comprised of electronic components that receive signals from a PCM. They are distinguished from IDM cores in that they read the signals to determine when and how long to send a 48-volt signal, rather than a 90-volt signal, to the fuel injectors to achieve the correct fuel quantity at the correct time in the combustion chamber.
GCL entered several of these items in four separate entries on June 10, 2011, September 22, 2011, November 21, 2011, and January 27, 2012. GCL entered the IDM and FICM cores under HTSUS subheading 9801.00.10. Your office issued a Notice of Action to GCL for each entry on October 10, 2012, notifying it that CBP changed the tariff classification to HTSUS subheading 8413.30.10 “based on HQ ruling 952497.” Your office now believes the correct classification for the subject articles is HTSUS subheading 8537.10.90.
ISSUES:
Are the IDM cores and FICM cores properly classified under heading 8481 of the HTSUS as parts of valves, or under heading 8537 of the HTSUS as control apparatus?
LAW AND ANALYSIS:
Initially, we note that the Protest was timely filed on December 3, 2012, which is within 180 days of the date of the Notices of Action, October 10, 2012. See 19 U.S.C. § 1514(c)(3). Additionally, CBP’s classification of the merchandise is a protestable matter under 19 U.S.C. § 1514(a)(2). Further Review of Protest No. 2402-12-150005 is properly accorded to the Protestant pursuant to 19 CFR 174.24(a).
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRI”) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (“ARI”). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings 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, GRIs 2 through 6 may be applied in order.
Section XVI, Note 2(a) of the HTSUS states “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.”
The following headings of the HTSUS are under consideration in this case:
8481 Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof:
8481.90 Parts:
8481.90.90 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8537 Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517:
8537.10 For a voltage not exceeding 1,000 V:
8537.10.90 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Protestant asserts that the articles at issue are classifiable under heading 8481 of the HTSUS as parts of valves. The Protestant contends that the IDM cores and FICM cores are “solenoid-operated control valves.” The Protestant cites to CBP Rulings NY B87326 (July 25, 1997) and NY N014348 (August 15, 2007), contending that CBP “failed to consider these rulings and the nature of the imported goods when the decision to re-classify the goods as parts of pumps under heading 8413 was made.”
In CBP Ruling HQ 952497 (December 15, 1992), we held that a fuel injector body is classifiable under HTSUS subheading 8413.91.10, which provides for "[p]umps for liquids, whether or not fitted with a measuring device; . . . parts thereof . . . [p]arts . . . [o]f pumps . . . [o]f fuel-injection pumps for compression-ignition engines." The fuel injector body in that case is a hollow metal cylinder that is flared on one side to allow a control valve to be fitted into it and threaded at the bottom to accept other components such as a nozzle. The fuel injector body, the control valve, and the nozzle together comprise a fuel injector unit. We found that the fuel injector body, as a part of the fuel injector unit, performs the functions of a pump, as the unit intakes, compresses, and discharges on a continuous basis.
As noted above, the subject IDM and FICM cores are comprised of electronic components that receive signals from a Powertrain Control Module (PCM). The cores read the signals to determine when and how long to send a signal to the fuel injectors to achieve the correct fuel quantity at the correct time in the combustion chamber. While they work in conjunction with the fuel injectors to cause the fuel to be injected into the chamber, the IDM and FICM cores are not parts of the apparatus that physically injects the fuel into the chamber.
As such, the IDM and FICM cores are distinguishable from the fuel injector body we ruled upon in HQ 952497. The analogy to be drawn here that the IDM and FICM cores communicate the need to inject fuel into another component in the system while the fuel injector body from HQ 952497 actually does the injecting as part of the fuel injector unit. Therefore, we do not find that HTSUS heading 8481 is applicable in this case because the IDM and FICM cores are not parts of valves. We also do not find CBP Rulings NY B87326 and NY N014348 applicable in this case as those cases involved fuel injector valves which by definition are parts of the fuel injection system that physically injects the fuel into the combustion chamber.
In understanding the language of the HTSUS, the Explanatory Notes of the Harmonized Commodity Description and Coding System (“ENs”), which constitute the official interpretation of the Harmonized System at the international level, 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 HTSUSA. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989). EN 85.37 explains, in relevant part:
This heading also covers: (3) “Programmable controllers” which are digital apparatus using a programmable memory for the storage of instructions for implementing specific functions such as logic, sequencing, timing, counting and arithmetic, to control, through digital or analog input/output modules, various types of machines.
In CBP Ruling HQ H088421 (May 10, 2012), we ruled that an electronic power steering electric control unit (EPS ECU) is properly classified under HTSUS subheading 8537.10.90. In doing so, we found the EPS ECU to be a programmable controller and stated the following:
[W]e note that the subject EPS ECU receives signals from multiple sensors within the vehicle. The torque sensor detects and measures the magnitude of a twist of the torsion bar and converts the applied torque into an electrical signal. The EPS ECU then processes information received from the torque sensor and skid control electrical control unit and determines the amount of assist current to be applied to the DC motor. The EPS ECU is capable of supplying power assist in either direction and will vary the force of the power assist according to vehicle conditions. However, the EPS ECU does not bring changes in torque, as measured by the torque sensor, back to a predetermined value. Nor does it maintain torque of the torsion bar at a predetermined or desired value against disturbances. Instead, the EPS ECU uses data from the torque sensor and other sensors to perform instantaneous calculations which determine how much power assist to provide to the driver. The net result of the power assist does not lower the amount of torque measured by the torque sensor, but instead, merely amplifies the effect of the driver’s applied torque on the steering wheel. As the EPS ECU does not return or maintain torque of the torsion bar at a predetermined or desired value, we find that the merchandise fails to satisfy the terms of Note 7(b) to Chapter 90, HTSUS, and is therefore precluded from classification in heading, 9032, HTSUS. Heading 8537, HTSUS, provides for bases equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90. As the EN to heading 8537, HTSUS, explains, articles of this heading consist of an assembly of apparatus from small switchboards to complex control boards or panels which usually also incorporate meters, transformers, and voltage regulators. The EN to heading 8537, HTSUS, further states that the heading covers “programmable controllers” which use programmable memory for the storage of instructions for implementing logic to control various types of machines and which control apparatus according to the user’s instructions. (Emphasis added.)
Just as the EPS ECU from HQ H008421 receives electrical signals and processes those signals to determine the amount of current to be applied to the motor, the subject IDM and FICM also receive electrical signals and process those signals to determine the amount of fuel to be injected into the combustion chamber. And just as the EPS ECU does not actually apply the current to the motors, the IDM and FICM do not actually inject the fuel into the combustion chamber.
Furthermore, we also stated the following in HQ H008421: “A programmable controller’s ultimate purpose is to control output devices. It does this by reading input signals from pushbuttons, contacts, switches, or sensors and deciding what the outputs should be, based on the merchandise’s program logic. Accordingly, we find that the primary function of the instant EPS ECU is to automatically analyze data from various sensors and control the production and transmission of electricity used to operate the 12-volt DC motor that supplies power assist. As such, we find that the subject EPS ECU is properly classified under heading 8537, HTSUS.” The subject IDM and FICM also analyze data received to control an output device, in this case the fuel injector.
Therefore, we find that the subject Injection Driver Modules and Fuel Injection Control Modules are programmable controllers. Thus, they are properly classified under HTSUS heading 8537. As such, they cannot be classified as parts of valves in heading 8481, HTSUS, because they are goods described in Section XVI. See Section XVI, Note 2(a)). Additionally, as discussed above, the merchandise is not described by the terms of heading 8481.
HOLDING:
The Injection Driver Modules and Fuel Injection Control Modules are properly classified under heading 8537, HTSUS. Specifically, they are classified under subheading 8537.10.90, HTSUS, which provides for “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517: For a voltage not exceeding 1,000 V: Other.” The general column one rate of duty, for merchandise classified in this subheading is 2.7 percent ad valorem.
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.
The Protest should be GRANTED with regard to the used diesel fuel injectors and High Pressure Oil Pumps being properly classified under HTSUS subheading 8481.80.90. The Protest should be DENIED with regard to the Injection Driver Modules and Fuel Injection Control Modules in accordance with the first paragraph of this HOLDING. A copy of this ruling should be attached to the CBP Form 19 or equivalent document and provided to the protestant as part of the notice of action on the protest.
Sixty days from the date of the decision the Office of International Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division