CLA-2-84:RR:NC:1:102 L86232
Mr. Doug Turnbull
Hitachi America, Ltd.
50 Prospect Avenue
Tarrytown, NY 10591-4698
RE: The tariff classification of a pump-turbine and pump-turbine runner from Japan
Dear Mr. Turnbull:
In your letter received August 4, 2005 you requested a tariff classification ruling on behalf of Hitachi America. Descriptive literature was submitted.
The articles in question are described as a pump-turbine and a pump turbine runner for use in pumped-storage hydroelectric systems. In pumped-storage hydroelectric systems water from a lower reservoir is pumped to an upper reservoir when demand for electricity is low. Water thus stored in the upper reservoir can then be released to generate electric power during periods of peak demand.
The subject pump-turbine is a single machine designed for the purpose of functioning as both a hydraulic turbine and a liquid pump. During periods of peak demand the pump-turbine functions as a hydraulic turbine allowing cascading water from the upper reservoir to drive a generator-motor that in turn generates electricity. When demand for electricity is low the generator-motor is essentially “reversed” and uses electric power to drive the pump-turbine. When the pump-turbine is driven by the generator-motor, the pump-turbine functions as a pump allowing water to be returned to the upper reservoir for future use. The pump-turbine runner is the part of the pump-turbine.
In your request you aver that the pump-turbine is properly classified in heading 8479, Harmonized Tariff Schedule of the United States (HTSUS), which provides for machines and appliances having individual functions, not specified or included elsewhere in chapter 84 of the HTSUS. You conclude that because the pump-turbine functions coequally as a turbine and as a pump, the pump-turbine is classified as a multi-purpose machine in accordance with note 7 to HTSUS chapter 84. However, we find that the note 3 to section XVI of the HTSUS is controlling.
Note 3 to HTSUS section XVI provides that machines designed for the purpose of performing two or more complimentary or alternative functions are to be classified as being that machine which performs the principal function. In this case, we cannot determine the principal function because, as you point out, the pump-turbine functions coequally as a hydraulic turbine and a pump. The Explanatory Note to HTSUS section XVI explains that where it is not possible to determine the principal function, it is necessary to apply General Interpretative Rule 3(c).
General Interpretative Rule 3(c) provides that goods shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. Hydraulic turbines are provided for in heading 8410. Pumps for liquids are classified in heading 8413. Accordingly, the pump-turbine falls to be classified in heading 8413, HTSUS.
The applicable subheading for the pump-turbine will be 8413.60.0090, HTSUS, which provides for other rotary positive displacement pumps for liquids. The rate of duty is free.
The applicable subheading for the pump-turbine runner will be 8413.91.9080, HTSUS, which provides for parts of other pumps for liquids. The rate of duty is free.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Kenneth T. Brock at 646-733-3009.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division