CLA-2 OT: RR: CTF: TCM W968293 JER
Port Director
Port of Dallas/Fort Worth
U.S. Customs and Border Protection
P.O. Box 619050
7501 Ester Blvd., Suite 160
DFW Airport, TX 75261-9050
RE: Classification of Heater Cores; Internal Advice 06/021
Dear Port Director:
This is in response to your memorandum, dated June 9, 2006, forwarding a request for internal advice made by counsel on behalf of Behr Climate Systems, Inc., in accordance with U.S. Customs and Border Protection (CBP) Regulations, Part 177 (19 C.F.R. §177). The request pertains to the classification of certain heater cores under the Harmonized Tariff Schedule of the United States (HTSUS). The importer queries whether the subject heater cores are classified as parts of air-conditioning machines in heading 8415, HTSUS, or as parts of motor cars, under heading 8708, HTSUS, as claimed by the Port.
FACTS:
The subject merchandise is described as heater cores used in the air-conditioning and heating systems of certain Mack trucks (a brand of heavy-duty off road trucks), referred to as the Mack heating, ventilation and air-conditioning (HVAC) system. According to the importer’s submission, the HVAC system is designed to condition the air and humidity levels inside the cab of the truck. The heater cores are installed inside the HVAC systems and feature tubes which extend out of the HVAC housing. These inlet and outlet tubes are attached to the engine heat source. The heater cores are locked into position by a plastic cover plate which is fastened with screws and clips. Air flows from the blower motor, passes over the heater core and is ultimately delivered into the passenger section of the truck.
ISSUE:
Whether the subject heater cores are classified under heading 8708, HTSUS, or under heading 8415, 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:
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….
Other:
8415.90.8045 Of automotive air conditioners…….
8708 Parts and accessories of the motor vehicles of headings 8701 to 8705:
Other parts and accessories:
8708.99 Other:
Other:
Other:
Other:
8708.99.81 Other….
8708.99.8180 Other….
Note 2 to Section XVI, HTSUS, provides in relevant part:
2. 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 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classified according to the following rules:
(b) 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 [.]
Note 2 (e) to Section XVII, HTSUS, provides:
2. The expressions "parts" and "parts and accessories" do not apply to the following articles, whether or not they are identifiable as for the goods of this section:
(e) Machines or apparatus of headings 8401 to 8479, or parts thereof; articles of heading 8481 or 8482 or, provided they constitute integral parts of engines or motors, articles of heading 8483 [.]
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings at the international level. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The General ENs to Section XVII provide, in relevant part:
(III) PARTS AND ACCESSORIES
(A) Parts and accessories excluded by Note 2 to Section XVII.
This Note excludes the following parts and accessories, whether or not they are identifiable as for the articles of this Section:
(5) Machines and mechanical appliances, and parts thereof, of headings 84.01 to 84.79, for example:
(f) Air conditioning machines (heading 84.15).
The ENs to heading 8415, HTSUS, explain that:
This heading covers certain apparatus for maintaining required conditions of temperature and humidity in closed spaces…..
The heading applies only to machines:
Equipped with a motor-driven fan or blower, and
Designed to change both the temperature (a heating or cooling element or both) and the humidity (a humidifying or drying element or both) of air, and
For which the elements mentioned in (1) and (2) are presented together.
As an initial matter, we note that pursuant to the 2007 changes to the HTSUS, subheading 8708.99.8080, HTSUSA, the classification claimed by the Port, was renumbered as 8708.99.8180, HTSUSA.
Counsel for the importer asserts that the subject heater cores are classified in subheading 8415.90.8045, HTSUSA, as parts of air-conditioning machines, because they are used exclusively with the Mack HVAC system. Further, because they are parts of machines of heading 8415, HTSUS, they are excluded from classification in heading 8708, HTSUS, by application of Note 2 (e) to Section XVII.
We agree. Heading 8415, HTSUS, provides, in relevant part, for “air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity… [and] parts thereof.” The courts have stated that “a ‘part’ of an article is something necessary to the completion of that article. It is an integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article.” United States v. Willoughby Camera Stores, Inc., 21 C.C.P.A. 322, 324 (Court of Customs and Patent Appeals 1933). Cited with approval in Bauerhin Technologies, LP., et al, v. United States, 110 F.3d 774 (Fed Cir. 1997). Applied by CBP in Headquarters Ruling Letter (HQ) 966618, dated January 16, 2004, and HQ 967291, dated November 4, 2004.
Based on the function of the Mack HVAC system and the explanation provided by the ENs to heading 8415, HTSUS, we find that the Mack HVAC system is an air-conditioning machine of heading 8415, HTSUS. It changes both the air temperature and humidity levels inside the cabs of the Mack trucks through the operation of a motor-driven fan or blower.
Our research indicates that, in general, heater cores facilitate the transfer of hot or cool air from the engine coolant source or radiator into the passenger compartment. The air flow is accomplished by means of inlet and outlet pipes which extend from the heater core to the heat or coolant source. In this instance, the HVAC system is unable to accomplish its primary function absent the subject heater cores. The heater cores are housed inside the Mack HVAC and facilitate the air flow through the HVAC module.
Based on these facts, we find that the heater cores are parts of air-conditioning machines because they meet the definition of “parts” provided in Willoughby Camera. As such, they are precluded from classification in heading 8708, HTSUS, by application of Note 2 (e) to Section XVII. Furthermore, Note 2 (b) to Section XVI directs that a part used solely or principally with a machine is to be classified with that machine. Accordingly, we find that the heater cores at issue are classified as parts of air-conditioning machines under subheading 8415.90.80, HTSUS.
We note that CBP has previously considered the classification of heater cores which function in conjunction with automobile air-conditioning machines. In HQ 084658, dated August 16, 1989, we classified a heater core in heading 8708, HTSUS, as a part of a motor vehicle. In that decision we determined that the heater core could function without the accompanying air-conditioner. Likewise, in NY L80343, dated October 21, 2004, we classified a heater core as a part of an automobile in heading 8708, HTSUS, because it could be used in automobiles not equipped with air-conditioning. We find that these rulings are not determinative of the classification of the heater cores in the instant case because the heater cores previously classified by CBP could be used in cars not equipped with air-conditioning. As such, they were not classifiable as parts of air-conditioning systems but as parts of motor vehicles. In the instant case, the heater cores at issue can only be used in Mack trucks’ HVAC systems and are therefore classifiable as parts of air-conditioning systems. 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).
HOLDING:
By application of GRI 1 and pursuant to Note 2 (b) to Section XVI and Note 2 (e) to Section XVII, HTSUS, the heater cores are classified in heading 8415, HTSUS, specifically, under subheading 8415.90.8045 HTSUSA, which provides for: “Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines which the humidity cannot be separately regulated; parts thereof: Parts: Other: Other: Of automotive air conditioners.” The column one, general rate of duty is 1.4% percent ad valorem.
You are to mail this decision to the internal advice inquirer no later than 60 days from the date of this letter. On that date, Regulations and Rulings of the Office of International Trade, will take steps to make the decision available to CBP personnel,
and to the public on the CBP Home Page on the World Wide Web at 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