H249755

HQ H249755 January 21, 2020 CLA-2 OT:RR:CTF:EMAIN H249755 ALS CATEGORY: Classification TARIFF NOs.: 8421.39.80; 8708.99.81 Port Director U.S. Customs and Border Protection 200 N. Mariposa Road Cargo Facility Nogales, Arizona 85621 Attn.: Sherri Rudy - Import Specialist RE: Application for Further Review of Protest 2604-13-100009; Tariff Classification of an Oil Separator and a Pneumatic Harness; North American Free Trade Agreement (“NAFTA”) Dear Port Director: This letter is in response to the above-referenced protest and application for further review (“AFR”) filed by Miniature Precision Components (“MPC” or “Protestant”). The protest concerns the tariff classification of an Oil Separator and a Pneumatic Harness under the Harmonized Tariff Schedule of the United States (“HTSUS”) and to deny preferential treatment for these articles under the North American Free Trade Agreement (NAFTA). Our response is set forth below. FACTS: The Oil Separator (MPC Part No. A2868) serves as a filter by controlling the flow of blow-by gasses out of a vehicle engine’s crankcase and preventing the flow of external air from entering the crankcase through the vent. Gas is pulled from the crankcase and drawn through the oil separator. The gas then passes around the baffles, with lubricating droplets hitting the baffles. The lubricating droplets are collected by impact and gravity and drain back into the crankcase. The Oil Separator contains a baffle, a positive crankcase ventilation (“PCV”) valve, at least one hose, and a case. The Pneumatic Harness (MPC Part No. H19691) consists of hoses, solenoid valves, a heating shield, clamps and tie strips. It serves as a conduit between the vehicle engine’s turbo systems and the waste gate or the compressor bypass valve. The hoses allow for the flow of gas from the turbo system to alleviate pressure from the engine vacuum. The solenoids are controlled by an engine control unit and serve as on and off switches, based on engine performance and/or requirements. The Protestant entered an unspecified number of the Oil Separators under subheading 8421.39.80, HTSUS, as other filtering machinery, and an unspecified number of the Pneumatic Harnesses under subheading 8708.99.81, HTSUS, as other parts of a motor vehicle of HTSUS heading 8703. Your office liquidated the subject entry under subheading 8481.80.90, HTSUS, as other appliances and, as noted above, denied the claim for NAFTA preferential treatment for lack of documentation verifying country of origin. ISSUES: Is the Oil Separator, as described above, properly classified under heading 8421, HTSUS, which provides for “Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof”, or heading 8481, HTSUS, which provides for “Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof”? Is the Pneumatic Harness, as described above, properly classified under heading 8481, HTSUS, which provides for “Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof”, or heading 8708, HTSUS, which provides for parts and accessories of motor vehicles of heading 8701 to 8705”? Does the Oil Separator meets the requirements of tariff shift rules 12(t)/53(A) and 19 CFR 102.20, therefore making it eligible for preferential treatment under the NAFTA? Does the Pneumatic Harness meets the requirements of tariff shift rule 36(A), therefore making it eligible for preferential treatment under the NAFTA? LAW AND ANALYSIS: Initially, we note that the Protest was timely filed on July 3, 2013, which is within 180 days of the date of the liquidation of the subject entry, May 17, 2013. See 19 U.S.C. §1514(c)(3)(B). Additionally, CBP's classification of the merchandise is a protestable matter under 19 U.S.C. §1514(a)(2). Further Review of Protest No. 2604-13-100009 is properly accorded to the Protestant pursuant to 19 CFR 174.24(a). Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is determined in accordance with the General Rules of Interpretation (GRI). Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is determined in accordance with the General Rules of Interpretation (GRI). 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. 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 may then be applied. The following headings and subheadings of the HTSUS are under consideration in this case: 8421 Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Filtering or purifying machinery and apparatus for gases: 8421.39 Other: 8421.39.80 Other… * * * 8481: Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: 8481.80 Other appliances: 8481.80.90 Other… * * * 8708 Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories: 8708.99 Other: Other: 8708.99.81 Other… * * * * * * Note 1(l) to Section XVI, HTSUS, provides the following: This section does not cover: (l) Articles of section XVII;… Note 2(e) to Section XVII, HTSUS, provides the following: The expressions "parts" and "parts and accessories" do not apply to the following articles, whether or not they are identifiable as for the goods of this section: (e) Machines or apparatus of headings 8401 to 8479, or parts thereof, other than the radiators for the articles of this section; articles of heading 8481 or 8482 or, provided they constitute integral parts of engines or motors, articles of heading 8483; Note 3 to Section XVI, HTSUS, provides the following: 3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function. Thus, given that Note 2(e) to Section XVII excludes goods of headings 8421 and 8481, we must first determine whether the subject merchandise is prima facie classifiable under those provisions. Oil Separator The Protestant contends that the Oil Separator’s principal function is to filter “a sufficient amount of oil from the crankcase exhaust-air/oil mix.” While acknowledging the PCV valve’s function of controlling the flow of gas into the Oil Separator, the Protestant argues that such function is secondary to the filtering function of the Oil Separator itself. Upon review, we find that the function performed by the PCV valve is in fact secondary to principal function performed by the Oil Separator itself, which, while serving as filter, controls the flow of gas through the crankcase of a motor vehicle, and traps particles of oil as the gas flows out through the crankcase. The subject “Oil Separator” is distinguished from somewhat similar articles that CBP has previously concluded were articles of heading 8481. In CBP Ruling NY F88727 (July 19, 2000), CBP classified a good identified as an “oil separator” comprised of a plastic canister with a diaphragm in subheading 8481.80.9015, HTSUS, after finding that the instant merchandise was essentially a valve used to control the re-circulation of pollutants contained in the blow-by gases. In CBP Ruling NY N125716 (October 25, 2010), CBP classified an Oil Control Valve Assembly in subheading

Initially, we note that the Protest was timely filed on July 3, 2013, which is within 180 days of the date of the liquidation of the subject entry, May 17, 2013. See 19 U.S.C. §1514(c)(3)(B). Additionally, CBP's classification of the merchandise is a protestable matter under 19 U.S.C. §1514(a)(2). Further Review of Protest No. 2604-13-100009 is properly accorded to the Protestant pursuant to 19 CFR 174.24(a).Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is determined in accordance with the General Rules of Interpretation (GRI).  Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is determined in accordance with the General Rules of Interpretation (GRI).  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.  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 may then be applied.The following headings and subheadings of the HTSUS are under consideration in this case:8421 Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Filtering or purifying machinery and apparatus for gases:8421.39 Other:8421.39.80 Other…* * *8481: Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof:8481.80 Other appliances:8481.80.90 Other…* * *8708 Parts and accessories of the motor vehicles of headings 8701 to 8705: Other parts and accessories:8708.99 Other: Other:8708.99.81 Other…* * * * * *Note 1(l) to Section XVI, HTSUS, provides the following:This section does not cover: (l) Articles of section XVII;…Note 2(e) to Section XVII, HTSUS, provides the following:The expressions "parts" and "parts and acc