CLA-2-84:OT:RR:NC:N1:102
Mr. Aaron Marx
Crowell & Moring, LLP
1001 Pennsylvania Ave NW
Washington DC 20004
RE: The tariff classification of an Evaporator Brushless Motor Assembly from China, Vietnam, Germany or Brazil
Dear Mr. Marx:
In your letter dated June 17, 2019, you requested a tariff classification ruling on behalf of your client, Valeo North America Inc. of Troy, Michigan.
The merchandise at issue is described as an evaporator brushless motor assembly, part number T88168A. The assembly is used in both HVAC units and battery cooling units of passenger motor vehicles. The assembly consists of a centrifugal blower wheel or fan, which circulates air flow, a fan motor with a defrost harness pigtail, a plastic housing that secures and insulates the motor and a clip cover that closes and seals the defrost harness pigtail. When the assembly is connected to the HVAC unit, the motor powered blower wheel or fan circulates airflow through the HVAC system and when connected to a battery cooling unit, the motor powered blower wheel or fan circulates conditioned air drawn from the inside of a vehicle’s cabin into a battery pack.
In your letter you suggest that the evaporator brushless motor assembly be classified under subheading 8415.90.8045, 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; parts thereof: Other: Other: Of automotive air conditioners. This office disagrees, as the evaporator brushless motor assembly can be used within a HVAC unit or a battery cooling unit of a motor vehicle.
Furthermore, 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.
“Parts” are classified in accordance with Note 2 to Section XVI which states that, subject to certain exclusions found in Note 1 to Section XVI, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: (a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings… (b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517;
(c) All other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548.
In this instance, the principal function of the assembly is to circulate air, which is functionality completed by the centrifugal fan. Fans that circulate air are specifically provided for in HTSUS heading 8414.
Therefore, in accordance with Note 2(a) to Section XVI, the applicable subheading for the evaporator brushless motor assembly, part number T88168A, will be 8414.59.6540, HTSUS, which provides for Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof: Fans: Other: Other: Other: Suitable for use with motor vehicles. The rate of duty is 2.3 percent ad valorem.
It is noted that the evaporator brushless motor assembly, part number T88168A, is from various countries to include China. Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note
20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings. Products of China classified under subheading 8414.59.6540, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8414.59.6540, HTSUS, listed above. The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 the World Wide Web at https://hts.usitc.gov/current.
Heading 9902, HTSUS, deals with a wide variety of goods which have a temporary reduction in their rate of duty by virtue of legislative action. Subheading 9902.15.56, HTSUS, provides for blower subassemblies, each consisting of an electric A/C or D/C motor with an output wattage over18.5 W but not exceeding 38.5W, a metal or plastic blower wheel and a base plate, designed to be incorporated in ceiling fans for permanent installation of subheading 8414.51.30 or in heating units combining a heater, fan and lights for permanent installation, of subheading 8516.29.00 (provided for in subheading 8414.59.65). For classification to be proper within this provision of the Nomenclature, the specific prerequisites outlined in subheading 9902.15.56 must be met. The subject evaporator brushless motor assembly does not meet the requirements of subheading 9902.15.56, HTSUS, as it is not designed to be incorporated in ceiling fans or heating units combining a heater, fan and lights for permanent installation, of subheading 8516.29.00. As such, the evaporator brushless motor assembly is not entitled to beneficial duty treatment under HTSUS subheading 9902.15.56.
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,
Steven A. Mack
Director
National Commodity Specialist Division