H302168

U.S. Customs and Border Protection HQ H302168 January 8, 2021 OT:RR:CTF:EMAIN HQ H302168 TPB CATEGORY: Classification TARIFF NO.: 8419.60.50 Joseph Acayan Givens & Johnston PLLC 950 Echo Lane, Suite 360 Houston, TX 77024-2788 Re: Revocation of NY N300353; Classification of a distillation refining module Dear Mr. Acayan: The following is our decision regarding your request for reconsideration of New York Ruling Letter (NY) N300353, dated September 27, 2018, on behalf of your client, Fluor Enterprises, Inc. (Fluor; Importer), regarding the tariff classification of a certain plant module under the Harmonized Tariff Schedule of the United States (HTSUS). In that ruling letter, the product at issue, “Module 1101JB,” is described as interfacing with various other modules and consists of interconnected components that include reboilers, condensers, pumps, drums and interconnecting pipes. The module was classified under subheading 8419.89.9585, Harmonized Tariff Schedule of the United States (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; Other machinery, plant or equipment: Other: Other.” In your request for reconsideration, you argue that the proper classification of the module is under subheading 8419.50.50, HTSUS, which provides for other heat exchange units. We have now determined that the distillation refining module subject to N300353 is classifiable in subheading 8419.60.50. Notice of the proposed action was published in the Customs Bulletin,Vol. 54, No. 42, on October 28, 2020. No comments were received in response to that notice. For the reasons set forth below, we hereby revoke NY N300353. FACTS: The article at issue in NY N300353 is Module 1101JB, which is described in the ruling as follows: The Distillation Refining Module, module 1101JB, interfaces with various other modules and consists of interconnected components that include reboilers, condensers, pumps, drums and interconnecting pipes. It is noted that the distillation module does not include the distillation columns and does not complete a distillation process. The function of the multi-tiered module is to complete a transfer of heat process that vaporizes liquid and a cooling process that liquefies gas. The reboilers are configured as shell and tube heat exchangers that use steam or gas to vaporize liquid. The vapor is then returned to the boilers and liquid drawn from the boilers is collected by a drum and subsequently pumped to another module. The condensers, which are also said to be configured as a shell and tube heat exchangers, cool vapor and liquefy gas. The condensed liquid produced by the condensers is sent to a drum and later pumped to another module. As implied above, the subject module is one of several separately imported modules that comprise the South Louisiana Methanol Plant (the Plant). The Plant includes a 93-tray distillation column (the "column") that is used to separate a mixed stream of liquid methanol and water. The column produces a stream of 99%+ pure methanol gas out of the top and a steam of 99%+ pure water out of the bottom. You note that the subject distillation module does not include the distillation columns and does not complete a distillation process. While the reboilers and the condensers are both included in Module 1101JB and are imported together, they are two separate systems supporting the column, which performs two distinctly different, albeit complementary, functions. In your submission, you note that the reboilers provide the heat necessary for the distillation column to function by boiling and recycling a portion of the column's bottom liquid fraction back into the column, while the condensers dissipate heat from the column to help regulate the temperature in the column by condensing and recycling a portion of the column's top gaseous fraction back into the column. NY N300353 states that the function of the multi-tiered module is to complete a transfer of heat process that vaporizes liquid and a cooling process that liquefies gas. The reboilers are configured as shell and tube heat exchangers that use steam or gas to vaporize liquid. The vapor is then returned to the boilers and liquid drawn from the boilers is collected by a drum and subsequently pumped to another module. The condensers, which are also said to be configured as a shell and tube heat exchangers, cool vapor and liquefy gas. The condensed liquid produced by the condensers is sent to a drum and later pumped to another module. ISSUE: What is the classification of the distillation refining module? LAW AND ANALYSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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 2 through 6 may then be applied in order. The HTSUS provisions under consideration are as follows: 8419 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: 8419.50 - Heat exchange units 8419.60 - Machinery for liquefying air or other gases Other machinery, plant and equipment 8419.89 - - Other You note that while the reboilers and the condensers are both included in Module 1101JB and are imported together they are two separate systems supporting the column that perform two distinctly different, albeit complementary, functions. As such, they should be classified separately. However, from the schematics provided with your request, the Module 1101JB comprises a complete system where the component reboilers and condensers are interconnected. As such, Note 4 to Section XVI is applicable. That Note states: Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function. The components, reboilers and condensers, contribute together to perform a function covered by heading 8419, i.e., the treatment of materials by a process involving a change of temperature. As such, there is no difference of opinion between Importer and CBP as to the heading for these modules are classified under. With regard to the subheading, GRI 6 instructs that for legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related Subheading Notes and, mutatis mutandis, to GRIs 1 – 5, on the understanding that only subheadings at the same level are comparable. For the purposes of this Rule the relative Section and Chapter Notes also apply, unless the context otherwise requires. In your submission, you argue that the reboilers and the condensers are all shell and tube heat exchangers and based on thei

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs).  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 2 through 6 may then be applied in order.  The HTSUS provisions under consideration are as follows:8419 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:8419.50 - Heat exchange units 8419.60 - Machinery for liquefying air or other gasesOther machinery, plant and equipment8419.89 - - Other You note that while the reboilers and the condensers are both included in Module 1101JB and are imported together they are two separate systems supporting the column that perform two distinctly different, albeit complementary, functions. As such, they should be classified separately. However, from the schematics provided with your request, the Module 1101JB comprises a complete system where the component reboilers and condensers are interconnected. As such, Note 4 to Section XVI is applicable. That Note states:Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Ch