OT:RR:CTF:EMAIN H337342 PF
Center Director
Center of Excellence and Expertise - Machinery
U.S. Customs and Border Protection
109 Shiloh Drive, Suite 300
Laredo, TX 78045
Attn: Wendell O. Jones, International Trade Analyst
RE: Protest and Application for Further Review No: 1703-21-112219; Classification of Compressors
Dear Center Director:
The following is our decision as to Protest and Application for Further Review No. 1703-21-112219, which was filed on February 22, 2021, on behalf of Atlas Copco Rental LLC (protestant). The protest pertains to the classification of compressors under the Harmonized Tariff Schedule of the United States (HTSUS).
The subject merchandise was entered by protestant between October 4, 2019 and March 6, 2020 and liquidated between August 28, 2020 and January 29, 2021. U.S. Customs and Border Protection (CBP) liquidated the compressors under subheading 8414.40.00, 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: Air compressors mounted on a wheeled chassis for towing." On February 22, 2021, protestant filed a protest and AFR regarding the tariff classification of the subject merchandise and claimed that the correct classification of the subject merchandise should be in subheading 8414.80.16, 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: Other, except parts: Other."
FACTS:
The protestant describes the merchandise as follows:
Each of the subject compressors are portable which makes them easy to load and unload. Additionally, each compressor is mounted on small wheels, relative to their overall size, which allows for easy maneuverability. The small wheels on each compressor help facilitate movement locally within a jobsite although they render it infeasible and unsafe for the compressor to be towed at even minimum speed limits on the road. Moreover, the compressors do not include a license plate holder, do not include brakes for agile stopping, nor are they safe to tow on the open road. The compressors are used to provide compressed air for heavy industrial applications. The below models are all identical, but just have varying compressor sizes.
The subject merchandise is further described in the protest as the following:
. The PTS 1600 is a diesel driven compressor and has two variants, the PTS 1600 4i and PTS 1600 Tier 4 Final. This machine has an operating pressure range of 10-150 pounds per square inch (psi).
. The PNS 1250 is a diesel driven compressor that provides an operating pressure range of 90-350 psi.
. The PTS 800 is a diesel driven compressor and has two variants, the PTS 800 T3 and the PTS 800 T4F. This machine has an operating pressure range of 7-150 psi.
ISSUE:
Whether the compressors are classifiable in subheading 8414.40, HTSUS as air compressors mounted on a wheeled chassis for towing or in subheading 8414.80, HTSUS, as other air pumps?
LAW AND ANALYSIS:
Initially, we note that the matters protested are protestable under 19 U.S.C. 1514(a) (2) as decisions on classification. The protest was timely filed, within 180 days of liquidation of the first entry. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, 2103(2) (B) (ii), (iii) (codified as amended at 19 U.S.C. 1514(c) (3) (2006)). Further Review of Protest No. 1703-21-112219 is properly accorded to Protestant pursuant to 19 C.F.R. 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with a previous CBP decision concerning substantially similar merchandise.
Classification under the HTSUS is made in accordance with the General Rules of
Interpretation (GRls). 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 GRls 2 through 6 may then be applied in order. GRI 6 states:
For legal purposes, the classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related subheading notes, and mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter, and subchapter notes also apply, unless the context otherwise requires.
The 2019 HTSUS subheadings under consideration are as follows:
8414 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:
8414.40.00 Air compressors mounted on a wheeled chassis for towing...
* * *
8414.80 Other, except parts:
8414.80.16 Other...
There is no dispute that the subject merchandise is classified under heading 8414, HTSUS. Rather, the issue is the classification at the subheading level and whether the subject compressors are "air compressors mounted on a wheeled chassis for towing" as provided for in subheading 8414.40, HTSUS or "other" as provided for in subheading 8414.80, HTSUS. Accordingly, GRI 6 applies.
In determining the proper subheading for the instant compressors under the HTSUS, we compare subheadings at the same level of indentation, before considering the text of subheadings at subsequent levels of indentation. As a result, we first must consider whether the compressors are "air compressors mounted on a wheeled chassis for towing," as classification in this subheading would preclude classification in a subheading for "other" articles.
The subject compressors are moved by being towed. The term "tow" is not defined in the HTSUS or the Explanatory Notes (ENs). As such, it must be construed in accordance with its common meaning, which may be ascertained by reference to "dictionaries, scientific authorities, other reliable information sources," "lexicographic and other materials" and to the pertinent ENs. C.J. Tower & Sons v. United States, 69 C.C.P.A. 128, 673 F.2d 1268, 1271 (1982); Simod America Corp. v. United States, 872 F.2d 1572, 1576 (Fed. Cir. 1989); GRK Can., Ltd. v. United States, 761 F.3d 1354, 1357 (Fed. Cir. 2014). Merriam-Webster's Online Dictionary defines "tow" as "to draw or pull along behind: haul."[1] Collins Online Dictionary defines "tow" as "to pull or drag behind."[2] The Cambridge Dictionary online defines "tow" as "to pull a car, boat, etc. along, fastened behind another vehicle or boat:"[3] The dictionary definition of "tow" is consistent with the ENs of Heading 8716, HTSUS, which explain that vehicles of this heading are designed to be towed by other vehicles (tractors, lorries, trucks, motorcycles, etc.), to be pushed or pulled by hand, to be pushed by foot or to be drawn by animals.
The subject compressors meet the definition of tow. They are mounted on a chassis with wheels and feature a tow bar that allows them to be hauled or pulled. Based on the common definition of tow and the physical characteristics of the subject compressors, they are appropriately classifiable in subheading 8414.40, HTSUS. Moreover, based on the physical characteristics of the compressors, we are unpersuaded by protestant's argument that they are not intended to be towed.
Protestant relies on New York Ruling (NY) N248806, dated January 15, 2014, to support classification of the subject compressors in subheading 8414.80, HTSUS. In NY N248806, CBP classified a rotary screw compressor with a "forkliftable" frame, designed for all weather operations in subheading 8414.80, HTSUS. Notably, the compressor was imported without axles and wheels. The compressor in NY N248806 is distinguishable from the current merchandise as it was imported without axles and wheels; and as a result, it differs from the subject merchandise.
In addition, the protestant maintains that the subject compressors do not meet the licensing requirements the Department of Transportation (DOT) outlines for tow behind power sources and references NY E83447, dated July 15, 1999. In NY E83447, a compressor was described as portable and was mounted on a wheeled chassis that was pushed like a wheelbarrow. The compressor was also characterized as being lightweight enough to be maneuvered by the smallest vehicles. In NY E83447, CBP stated that the descriptive information implied that the compressor met the licensing requirements for tow behind power sources. However, CBP's recognition of the licensing requirements does not impact the classification of the subject compressor, as the licensing requirements of DOT do not preclude the compressors from being classified within subheading 8414.40, HTSUS. CBP is not bound by the classifications and definitions of other federal government agencies. Inabata Specialty Chemicals v. United States, 29 C.I.T. 419, 424 (2005).
In conclusion, because the subject compressors are classifiable in subheading 8414.40, HTSUS, they are precluded from being classified in subheading 8414.80, HTSUS.
HOLDING:
By application of GRI 1 and 6, the compressors are classified in subheading 8414.40, 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: Air compressors mounted on a wheeled chassis for towing." The 2019 general column one, rate of duty is 2.7% ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the internet at www.usitc.gov/tata/hts/.
Since the rate of duty under the classification indicated above is the same as the liquidated rate, you are instructed to DENY the Protest in full.
You are instructed to notify the protestant of this decision no later than 60 days from the date of this decision. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to this notification. Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings will make the decision available to CBP personnel and the public on the Customs Rulings Online Search System (CROSS) at https://rulings.cbp.gov/, or other methods of public distribution.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division
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[1] https://www.merriam-webster.com/dictionary/tow (last visited May 15, 2024).
[2] https://www.collinsdictionary.com/us/dictionary/english/tow (last visited May 15, 2024).
[3] https://dictionary.cambridge.org/us/dictionary/english/tow (last visited May 15, 2024).