CLA-2-84:OT:RR:NC:N1:103
Robert Jung
Zollexperten.rd.gmbh & co kg
Leopoldstraße 26
Innsbruck, Austria
RE: The tariff classification of an input mixer and substrate heat exchanger from Austria
Dear Mr. Jung:
In your letter dated December 16, 2021, you requested a tariff classification ruling on behalf of your client, Thoeni Industriebetriebe GmbH.
The Input Mixer, model TVM 400/3000, is described as a Twin-shaft mixer which is used in the conditioning of the input (biowaste). It has an electric propulsion system with dimensions of 4.8 meters in length, 1.5 meters in width and 1.5 meters in height. It has a storage volume of 3.6 m3. The Input Mixer is a module used in a biogas plant. You state that the input mixer will be imported disassembled in one shipment for transport purposes.
Classification of goods under the Harmonized Tariff Schedule of the United States (“HTSUS”) is governed by the General Rules of Interpretation (“GRIs”). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order.
General Rule of Interpretation “GRI” 2(a) states as follows:
Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
Furthermore, the Explanatory Notes to the Harmonized Commodity Description and Coding System (ENs) represent the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper interpretation of these headings. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The EN for GRI 2(a) states in “Rule 2(a) (Articles presented unassembled or disassembled) (V)”:
The second part of Rule 2(a) provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport.
In accordance with GRI 2(a), the applicable subheading for the Input Mixer, model TVM 400/3000, as described above will be 8479.82.0040, HTSUS, which provides for “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Mixing, kneading, crushing, grinding, screening, sifting, homogenizing, emulsifying or stirring machines: Mixing, kneading or stirring machines”. The rate of duty will be free.
The substrate heat exchanger consists of a pipe containing substrate that is surrounded by a second pipe filled with hot water. The hot water raises the temperature of the substrate to 55 degrees Celsius. The substrate moves through the substrate heat exchanger, which connects the input mixer unit to the digester within a Biogas plant.
You suggest the substrate heat exchanger is classified as a heat exchange unit under subheading 8419.50, HTSUS. Although we agree the unit is classified in heading 8419, HTSUS, we disagree on the subheading. The ENs to heading 84.19(I)(B) describe heat exchange units of heading 8419 as follows:
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.
The substrate heat exchanger unit does not meet the requirements for classification in heading 8419, HTSUS, as a heat exchanger. The function of the substrate heat exchanger is not to cool one fluid while heating a second, but to raise the temperature of an unheated substrate mixture before it enters the digester.
As such, the applicable subheading for the substrate heat exchanger will be 8419.89.9585, HTSUS, which provides for “Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; parts thereof: Other machinery, plant or equipment: Other: Other: Other: Other: For other materials.” The rate of duty will be 4.2 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 the World Wide Web at https://hts.usitc.gov/current.
Please note that modifications to the Harmonized Tariff Schedule of the United States (HTSUS) [to align the HTSUS on the 2022 version of the Harmonized Commodity Description and Coding System] pursuant to Section 1206 of the Omnibus Trade and Competitiveness Act of 1988 are forthcoming. These modifications, made by Presidential Proclamation 10326 and set forth in Annexes I, II.A, and II.B of U.S. International Trade Commission Publication 5240, will be effective on January 27, 2022. To the extent that the modifications to the HTSUS impact the classification of the merchandise subject to this ruling, you may submit a new ruling request at that time.
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 Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division