CLA-2-85:OT:RR:NC:N2:220
Bradley Ward
EPT Global Logistics USA LLC
126 Seven Farms Dr.
Charleston, SC 29492
RE: The tariff classification of a generating set from Austria
Dear Mr. Ward:
In your letter dated February 4, 2025, you requested a tariff classification ruling.
The merchandise under consideration is identified as the Jenbacher Type 6 Genset, Model J616, which is described as a gas-fueled generating set consisting of the engine, the generator, control panel, heat recovery systems, and numerous parts and components that make up the fully assembled machine. The J616 Genset produces a maximum electrical output of 20.1 MW with a maximum thermal output of 18.23 MW.
Due to the size and complexity of the J616 Genset, you state that the individual components of the generating set will be imported together, on a single conveyance, in an unassembled state. Subsequent to importation into the United States, the above components are fitted together to form a complete electric generating set at the installation site.
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. 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 failing 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 Jenbacher Type 6 Genset, Model J616 generating set, as described above, will be 8502.20.0085, HTSUS, which provides for ““Electric generating sets…: Generating sets with spark-ignition internal combustion piston engines: Of an output exceeding 75 kVA”. The general rate of duty will be 2% 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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division