CLA-2-85:OT:RR:NC:N1:112
Ms. Nicole M. Jenkins, Esq.
Crowell & Moring LLP
1001 Pennsylvania Ave. NW
Washington, D.C. 20004
RE: The tariff classification of a heat and power unit from Japan
Dear Ms. Jenkins:
In your letter dated October 18, 2010, you requested a tariff classification ruling on behalf of your client Aisin Holdings of America, Inc.
The items concerned are referred to as Combined Heat & Power (CHP) Units, Aisin part numbers, GECC60A2N which uses natural gas for fuel, and GECC60A2P which uses propane gas for fuel. Each model is comprised of a water-cooled, spark ignition gas engine coupled to an electric generator, and a heat recovery system. Both models produce 6.0 kW of electricity.
The Combined Heat & Power Units have the ability to capture and use the heat that is normally lost when generating electricity. By adding a heat recovery system to the generator set, the by-product heat is captured and used to heat water; as a result you have one individual unit that is capable of producing both electricity and heat.
You proposed classification in subheading 8418.61.0100 of the Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps, other than the air conditioning machines of heading 8415…: Other refrigerating or freezing equipment; heat pumps: Heat pumps other than air conditioning machines of heading 8415”.
The CHP units are composite machines which perform the function of generating both electricity and heat. The component that performs the principal function necessary for the fulfillment of both processes, is the generator set. As such, classification under heading 8418 would be inapplicable.
The applicable subheading for the Combined Heat & Power (CHP) Unit will be 8502.20.0060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electric generating sets…: Generating sets with spark-ignition internal combustion piston engines: Of an output exceeding 1.875kVA but not exceeding 6.25 kVA”. The rate of duty will be 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 Steven Pollichino at (646) 733-3008.
Sincerely,
Robert B. Swierupski
Director
National Commodity Specialist Division