H312651

U.S. Customs and Border Protection HQ H312651 November 23, 2020 OT:RR:CTF:EMAIN H312651 SKK CATEGORY: Classification TARIFF NO.s: 8419.50.10; 8419.50.50 Center Director Machinery Center of Excellence and Expertise U.S. Customs and Border Protection 109 Shiloh Drive, Suite 300 Laredo, TX 78045 Attn: Jonathon McIlwain, Sr., Import Specialist Re: Protest No. 3901-20-109677; classification of plate-fin air-cooled heat exchangers Dear Center Director: This is our decision regarding an Application for Further Review (AFR) of Protest No. 3901-20-109677, filed on behalf of Sullair, LLC (Protestant). The Protest and AFR concern the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of several styles of heat exchangers. The AFR was forwarded to this office for consideration. No samples were provided for examination. FACTS: The articles at issue in this Protest and AFR are described by Protestant as follows: Model 88290014-225 is a brazed aluminum plate-fin heat exchanger. It is a combination air/oil cooler used on Sullair air compressor Shoptek models 11 and 15. Its first section is an oil cooler and its second section is an air cooler. In the first section, heated fluid (oil) enters the heat exchanger through the first port and exits through a second port. While the fluid travels through the heat exchanger, a fan blows ambient air in a cross flow or perpendicular direction across and through the cooling fins, lowering the temperature of the oil by convection. The cooled oil leaves the heat exchanger through the second port. In the second section, the unit performs an air-cooling function. Heated compressed air enters through the first port and traverses the heat exchanger while a fan blows ambient air through and across the cooling fins to remove heat, resulting in cooled compressed air that exits out a second port. This model does not use a second fluid as a cooling agent. Models 02250137-799, 02250139-760 and 02250149-785 are brass plate-fin heat exchangers designed for glycol/water-based engine coolant. They are used in several Sullair air compressor models. These heat exchangers move heated coolant through one port while fan-driven air blows across and through the heat exchanger, with heat being carried away from the fluid through convection resulting in a now-cooled fluid leaving the heat exchanger through a second port. These models do not use a second fluid as a cooling agent. In Protestant’s submission in support of this AFR, it is stated that the subject articles may be imported with or without a fan. In a subsequent email to this office, dated October 21, 2020, Protestant verified that the merchandise at issue in the subject entries was imported without fans. The subject articles were liquidated on October 11, 2019, under heading 8419, HTSUS, specifically subheading 8419.89.95, HTSUS, which provides for “[M]achinery, 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.” As products of China, the merchandise was subject to duties imposed by heading 9903, HTSUS, specifically subheading 9903.88.02, HTSUS, which provides for “[E]xcept as provided in headings 9903.88.12, 9903.88.17, or 9903.88.20, articles the product of China, as provided for in U.S. note 20(c) to this subchapter and as provided for in the subheadings enumerated in U.S. note 20(d) [to this subchapter].” Protestant submits that the brazed aluminum plate-fin air-cooled heat exchanger is properly classified under subheading 8419.50.10, 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.” Protestant submits that the brass plate-fin air-cooled heat exchangers are properly classifiable under subheading 8419.50.50, HTSUS, which provides for, in pertinent part, “[H]eat exchange units: Other.” Counsel further protests the classification and liquidation of the entries under subheading 9903.88.02, HTSUS. Counsel claims the brazed aluminum plate-fin heat exchangers are covered by the exclusion set forth in Chapter 99 Note 20(q)(37) under subheading 9903.88.14, HTSUS, which provides for “Brazed aluminum plate-fin heat exchangers, each valued not over $250 (described in statistical reporting number 8419.50.10).” Counsel further claims the brass plate-fin heat exchangers are covered by the exclusion set forth in Chapter 99 Note 20(q)(42) under subheading 9903.88.14, HTSUS, which provides for “Heat exchangers, each valued not over $17,000 (described in statistical reporting number 8419.50.50).” ISSUE: What is the proper classification of the subject merchandise under the HTSUS? LAW AND ANALYSIS: A decision on classification and the rate and amount of duties chargeable is a protestable matter under 19 U.S.C. §1514(a)(2). The subject Protest was timely filed on April 2, 2020, within 180 days of liquidation, pursuant to 19 U.S.C. 1514(c)(3). Further Review of Protest No. 3901-20-109677 is properly accorded pursuant to 19 CFR § 174.24(b), as the Protestant has alleged that the decision against which the Protest was filed involves questions of law and fact that have not been ruled upon by the Commissioner of CBP or his designee or by the Customs courts. Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will 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 will then be applied in order. The following 2019 provisions of the HTSUS are under consideration: 8419 Machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change in 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: 8419.50 Heat exchange units: 8419.89 Other machinery, plant or equipment: There is no dispute that the instant merchandise is classified under heading 8419, HTSUS. Because the instant matter pertains to the scope of provisions beyond the four-digit heading level, GRI 6 is implicated. GRI 6 states: For legal purposes, the classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and any related subheading notes, and mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter, and subchapter notes also apply, unless the context otherwise requires. The issue presented is whether the subject articles are classified in subheading 8419.50, HTSUS, which provides for heat 

A decision on classification and the rate and amount of duties chargeable is a protestable matter under 19 U.S.C. §1514(a)(2). The subject Protest was timely filed on April 2, 2020, within 180 days of liquidation, pursuant to 19 U.S.C. 1514(c)(3). Further Review of Protest No. 3901-20-109677 is properly accorded pursuant to 19 CFR § 174.24(b), as the Protestant has alleged that the decision against which the Protest was filed involves questions of law and fact that have not been ruled upon by the Commissioner of CBP or his designee or by the Customs courts.Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will 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 will then be applied in order. The following 2019 provisions of the HTSUS are under consideration:8419     Machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change in 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:8419.50 Heat exchange units:8419.89 Other machinery, plant or equipment:There is no dispute that the instant merchandise is classified under heading 8419, HTSUS. Because the instant matter pertains to the scope of provisions beyond the four-digit heading level, GRI 6 is implicated. GRI 6 states: For legal purposes, the classification of goods in the subheading of a heading shall be determined according to the terms of those subheadings and