CLA-2-84:OT:RR:NC:1:102
Rick Wilson
Liebert Corporation
1050 Dearborn Drive
Columbus, OH 43085
RE: The tariff classification of a Coil Condenser Unit from Mexico
Dear Mr. Wilson:
In your letter dated September 9, 2014 you requested a tariff classification ruling.
You intend to import Liebert Microchannel Coil Condenser units, model numbers MCS028, MCM040, MCM080, MCL110 and MCL220. The primary components of the remote air cooled Condenser Units include aluminum condensing coils, a motor driven fan, electronic controls, a metal housing chamber and mounting legs. The nominal capacity rating of the condensers ranges from 28 to 220 kilowatts (kW). The Condensers are used for eliminating heat from the indoor Liebert split system Computer Room Air Conditioning Units (CRAC). The movement of the refrigerant between the indoor CRAC unit and the outdoor Condenser Unit is caused by a compressor located within the indoor CRAC unit.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation ("GRIs"). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding, the ENs provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the System. Customs believes the ENs should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
You suggest classifying the Condensers in subheading 8415.83.0060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Air Conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated; not incorporating a refrigerating unit; Heat Exchangers including condensing units; Condensing Units; Exceeding 17.58 kW per hour. In this case, the Condenser Unit is only a component of a Split-system air conditioner and not a complete air conditioning machine as designated in subheading 8415.83.0060, HTSUS, and therefore 8415.83, HTSUS, does not apply.
You also suggest 8419.50.5000, HTSUS, which provides for Machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change of temperature. You rely on Section XVI Note 2 (a) and contend that Section XVI Note 2 (b) is precluded because Note 2 (a) states that goods included in any of the headings of chapter 84 or 85 are in all cases to be classified within their respective headings.
Section XVI, Note 2, governs the classification of goods that are identifiable as parts of machines or apparatus of Chapter 84 or Chapter 85. Parts which are goods included in any of the headings of Chapters 84 and 85 are in all cases to be classified in their respective headings. See Note 2(a). Other parts, if suitable for use solely or principally with a particular machine, or with a number of machines of the same heading, are to be classified with the machines of that kind. See Note 2(b).
It is stated that the lowering of the refrigerant temperature within the condenser coils produces a phase change by turning the heated refrigerant gas into a cooler refrigerant liquid and the cooler liquid refrigerant is then returned to the indoor CRAC unit in order to complete the air conditioning cycle.
The ENs to subheading 8415.90 states “This subheading includes both indoor and outdoor units for split-system air conditioning machines of subheading 8415.10 when presented separately.” As such, there is no doubt that your split system Air Conditioning Condenser Units will be presented separately and they are identifiable as suitable for use solely or principally with the air-conditioning machines, of which they are parts. In accordance with Section XVI, Note 2 (b) and the ENs to subheading 8415.90, subheading 8419.50.5000, HTSUS, is precluded.
In your letter you cited Rulings HQ 962279, HQ 961196, and NY 119815 and contend they apply. Those rulings are not appropriate since the merchandise described is not akin to the merchandise under consideration here. In your letter, you also referenced Ruling HQ 957929. This office takes note that in Ruling HQ 957929, the merchandise was classified in subheading 8415.90.80, HTSUS, and did not meet the parameters of Heading 8419, HTSUS.
Thus, the applicable subheading for the Liebert Microchannel Coil Condenser Unit, model numbers MCS028, MCM040, MCM080, MCL110 and MCL220 will be 8415.90.8085, HTSUS, which provides for other parts of air-conditioning machines. The rate of duty will be 1.4 percent ad valorem.
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 Sandra Martinez at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division