CLA-2-84:OT:RR:E:NC:N1:102
Ms. Misty G. Gibbins
Pacific Custom Brokers, USA
1400 A Street
Blaine, Washington 98230
RE: The tariff classification of a natural gas fueled engine from Canada
Dear Ms. Gibbins:
In your letter dated February 19, 2009 on behalf of Westport Power, you requested a tariff classification ruling.
The article in question is described as a compression-ignition engine which has been converted to run on natural gas. You indicate that diesel engines of US origin are shipped to Canada where they are converted to use high-pressure natural gas, rather than diesel fuel, as the primary fuel.
You suggest that the converted engine would be correctly classified as compression-ignition internal combustion piston engines (diesel or semi-diesel engines): …of a kind used for propulsion of vehicles of chapter 87: to be installed in vehicles of subheading 8701.20, or heading 8702, 8703 or 8704 in 8408.20.2000 Harmonized Tariff Schedule of the United States (HTSUS). However, engines of this heading are defined within the heading as diesel or semi-diesel.
The Explanatory Notes to the Harmonized System, although not binding or considered to be dispositive in the interpretation of the Harmonized System, should be consulted on the proper scope of the Harmonized System. In this case, the Explanatory Notes clearly state that engines of HTSUS heading 84.08 operate on heavy fluid fuels such as heavy petroleum or coal tar oils, shale oils and vegetable oils. The engine in question is designed to operate on natural gas which is not a heavy fluid fuel.
You also suggest that the engine would be correctly classified as spark-ignition reciprocating…piston engines: …of a kind used for the propulsion of vehicles of chapter 87: of a cylinder capacity exceeding 50 cc but not exceeding 250 cc: to be installed in vehicles of subheading 8701.20, or heading 8702, 8703 or 8704, other in 8407.32.2080 HTSUS. However, the engine in question is not spark-ignition engine.
The applicable subheading for the subject engine will be 8412.80.9000, HTSUS, which provides for other engines and motors. The rate of duty is free.
In your letter you also request that we determine the country of origin and status of the converted engine under the North American Free Trade Agreement (NAFTA).
General Note 12(b), HTSUS, sets forth the criteria for determining whether a good is originating under the NAFTA. Based on the information that was provided, the conversion of the non-originating diesel engine to natural gas satisfies the change in tariff classification required under HTSUS General Note 12(t), i.e., a change to subheadings 8412.10 through 8412.80 from any other heading. The converted engine will be entitled to a free rate of duty under the NAFTA upon compliance with all applicable laws, regulations, and agreements.
Part 102 of the regulations, sets forth the "NAFTA Marking Rules" for the purpose of determining whether a good is a good of a NAFTA country for marking purposes. Applying the NAFTA Marking Rules set forth in Part 102 of the regulations to the facts of this case, we find that the non-originating diesel engine undergoes the applicable shift in tariff classification. Accordingly, the country of origin of the converted engine is Canada.
We have not addressed the applicability of the special classification provision of HTSUS heading 9802 because the converted engine may be imported free of duty under subheading 8412.80.9000, HTSUS.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
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 Brock at (646) 733-3009.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division