CLA-2-84:OT:RR:NC:N1:106
Nassar Aljahmi, Program Manager, Classification
Sandler & Travis Trade Advisory Services, Inc.
36555 Corporate Drive, Suite 400
Farmington Hills, MI 48331
RE: The tariff classification of oil coolers from multiple countries
Dear Mr. Aljahmi:
In your letter dated July 19, 2010 you requested a tariff classification ruling on behalf of your client, Vista-Pro Automotive LLC of Nashville, Tennessee.
The items under consideration have been identified as various plate and concentric oil coolers imported into the United States under multiple part numbers. The sample you provided will be returned as per your request.
The function of the oil cooler is to cool the automatic transmission fluid (ATF) or engine oil that flows through it.
The “plate” type is a stack of several steel or aluminum chambers separated by spacers. The ATF or engine oil passes through the chambers while the coolant in the radiator tank surrounds the oil cooler and flows between the individual chambers. As the oil passes through the chambers, the heat from the oil is transferred to the coolant. The internal surface of the chamber has teeth similar to a rasp, called a “turbulator” which is used to increase the rate in which the heat is transferred to the plates.
The second type is the “concentric” oil cooler and it has a hollow cylindrical shape. It has double walls made of steel or brass through which the oil flows. The oil passes between the cylinder walls as the coolant flows on the outer and inner surface of the cylinder walls to transfer the heat from the oil to the surrounding coolant. The concentric oil cooler also has a turbulator between the internal and external wall to increase the rate of heat transfer.
You state in your request that, depending on the radiator design and customer requirements, the radiator may be equipped with only a transmission oil cooler, or both a transmission oil and engine oil cooler. The oil cooler is usually located in the radiator outlet tank; however, if the vehicle is equipped with both one oil cooler will be placed in the radiator inlet tank and the other in the radiator outlet tank.
In your request, you propose classification of both types of oil cooler (plate, concentric) in subheading 8419.90.3000 of the Harmonized Tariff Schedule of the United States (HTSUS) which provides for “Machinery…for the treatment of materials by a process involving a change in temperature such as…cooling: Parts: Of heat exchange units”.
Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1. states, “ ... classification shall be determined according to the terms of the headings ... ".
General Note 3. (h) (vi) to the HTSUS states, “ ... a reference to “headings” encompasses subheadings indented thereunder.” Subheading 8419.89 of the HTSUS provides for " Machinery…for the treatment of materials by a process involving a change in temperature such as…cooling: Other…equipment: Other".
The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs. EN 84.19 states, “Heat exchange units in which a hot fluid (hot gas, steam or hot liquid) and a cold fluid are made to traverse parallel paths, but usually in opposite directions, separated by thin metal walls in such a manner that the one fluid is cooled and the other heated.
From the information provided in your request the oil coolers, while transferring the heat from the oil to the surrounding coolant in the radiator, do not meet the definition requirements needed for classification under HTSUS heading 8419 as a heat exchanger. These oil coolers only have one inlet and one outlet and are designed to be installed inside an automotive radiator. Radiators for motor vehicles are not classified as heat exchangers.
The applicable subheading for the Plate and Concentric Oil Coolers will be 8419.89.9540, HTSUS, which provides for “Machinery…for the treatment of materials by a process involving a change in temperature such as…cooling: Other…equipment: Other: Other: Other: Designed for cooling: Other”. The general rate of duty is 4.2%.
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 Mark Palasek at (646) 733-3013.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division