CLA-2-84:OT:RR:NC:N1:106
Barbara C. Stegemann, Manager
KPMG, LLP
Bay Adelaide Centre
333 Bay Street, Suite 4600
Toronto, Ontario, CANADA M5H 2S5
RE: The tariff classification of a dual fuel engine from Germany
Dear Ms. Stegemann,
In your letter dated August 28, 2012, you requested a tariff classification ruling on behalf of Toromont Industries Ltd. of Concord, Ontario, CANADA.
The item being considered is a Caterpillar Dual Fuel Engine (Model # MaK M 46 DF). You state that this engine will be used for marine propulsion and is described as a turbocharged, intercooled, non-reversible four stroke dual fuel engine which can be operated in two (2) different modes. In conventional diesel mode, in which diesel or heavy fuel can be burned; or in gas mode, in which natural gas can be burned. The Caterpillar Dual Fuel Engine (Model # MaK M 46 DF) uses approximately 1% diesel fuel and approximately 99% natural gas fuel. It contains a 6, 7, 8, or 9 cylinder configuration with a 900 kilowatt (kW) output capacity.
In your ruling request, you suggested classification in heading 8408.10.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Compression-ignition internal combustion piston engines (diesel or semi-diesel engines): Marine propulsion engines…Exceeding 746 kW.”
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 ... .”
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. The ENs to 8408 states that recent technology has developed a compression, ignition engine which burns a lighter, natural gas. This type of engine is excluded from classification in heading 8408 as the Explanatory Notes to that heading state that the engines of heading 8408 “operate on heavy fluid fuels.” Such compression ignition, natural gas fueled engines would be properly classified as “other engines” in heading 8412.
The applicable classification subheading for the Caterpillar Dual Fuel Engine (Model # MaK M 46 DF) will be 8412.80.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for, "Other engines and motors, and parts thereof: Other engines and motors: Other." The rate of duty will be 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 Matthew Sullivan at 646-733-3013.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division