CLA-2-84:OT:RR:NC:N1:103
Robert Boswell
DSV Air & Sea Inc.
1500 NE Irving Street, Suite 575 Portland, OR 97232
RE: The tariff classification of cooler assemblies from China
Dear Mr. Boswell:
In your letter dated May 26, 2023, you requested a tariff classification ruling on behalf of your client, Hydac Corp.
The items under consideration are identified as aluminum cooler assemblies that are used to cool various fluids in a SKYTRAK telehandler. The assemblies are described as a type of cooler that uses a bar, plate, and fin design, the components of which are joined using a brazing process. Part number 2951523 is a charge air cooler measuring 856 mm in length, 113 mm in width, and 135 mm in height. Part number 2951524 is a fuel cooler measuring 820 mm in length, 75 mm in width, and 100 mm in height. Part number 2951525 is a hydraulic oil cooler measuring 807 mm in length, 178 mm in width, and 112 mm in height. Part number 2951526 is a jacket water cooler measuring 832 mm in length, 210 mm in width, and 361 mm in height. Part number 2951527 is a transmission oil cooler measuring 810 mm in length, 185 mm in width, and 151 mm in height. Although each assembly is used to cool a different fluid and sized to fit a specific frame, their operation is the same. Once connected, a hot fluid flows into the inlet port of the initial tank, passes through multiple rectangular channels and into a second tank with an outlet port. As the fluid flows through the channels, a fan blows ambient air perpendicular to the channels and through the fins thereby cooling the fluid. You state the shroud, fans, valves, and fasteners are not imported with each assembly, but are installed in the United States.
In your letter, you suggest the subject cooler assemblies are classified under subheading 8431.20.0000, Harmonized Tariff Schedule of the United States (“HTSUS”). We disagree. The cooler assemblies are a type of heat exchange unit. Heat exchange units are specifically provided for in heading 8419.
Therefore, in accordance with Note 2(a) to Section XVI, the applicable subheading for the cooler assemblies, part numbers 2951523, 2951524, 2951525, 2951526, and 2951527, will be 8419.50.1000, 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: Heat exchange units: Brazed aluminum plate-fin heat exchangers.” The rate of duty will be 4.2 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8419.50.1000, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8419.50.1000, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 at https://hts.usitc.gov/current
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division