H302985

HQ H302985 May 3, 2021 CLA-2 OT:RR:CTF:EMAIN H302985 DSR CATEGORY: Classification TARIFF NOS.: 8417.90.00, 8481.80.90 Port Director, Port of New Orleans 423 Canal Street Room 260 New Orleans, LA 70130 ATTN: Barbara Herman, Import Specialist, Petroleum, Natural Gas, and Minerals Center of Excellence and Expertise RE: Application for Further Review of Protest Number 2002-18-100011; Tariff classification of radiant floors, radiant panels, radiant arches, radiant coils and plenums from Malaysia Dear Port Director: This letter is in reply to the Application for Further Review (“AFR”) of Protest Number 2002-18-100011, timely filed on February 7, 2018, by Charter Brokerage, LLC, on behalf of Motiva Enterprises, LLC (“Protestant”). The protest is against U.S. Customs and Border Protection’s (“CBP”) classification of parts for a vertical, cylindrical fired heater under subheading 8419.90.95 of the Harmonized Tariff Schedule of the United States (HTSUS), and subheading 8481.80.90, HTSUS. In issuing this ruling this office considered the discussion held with Protestant during a telephonic conference on June 23, 2020, and we also considered the supplemental information provided by Protestant on July 2, 2020. FACTS: The goods subject to this AFR are described as radiant floors, radiant panels, radiant arches, radiant coils and plenums. Protestant entered all of the goods under subheading 8419.90.30, HTSUS, which provides for parts of heat exchange units. CBP eventually liquidated the radiant floors, radiant panels, radiant arches, radiant coils under subheading 8419.90.95, HTSUS, which provides for “Machinery, plant or laboratory equipment … for the treatment of materials by a process involving a change of temperature such as heating …, other than machinery or plant of a kind used for domestic purposes; …Parts: Other: Other.” CBP liquidated the plenums under subheading 8481.80.90, 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: Other appliances: Other.” Protestant asserts that the goods are specifically manufactured for and used exclusively with a vertical, cylindrical fired heater that primarily consists of a stack, convection coils, radiant coils, a refractory, burner and radiant panels. The heater is designed for a hydrocracker unit and is used to heat crude oil to a desired temperature. The heating process is described by Protestant as employing one radiant section and one convection section within the heater, each so named by the “dominant heat transfer mechanism.” Burners in the radiant section combust fuel, which results in flames that are significantly hotter than the rest of the heater. Oil flowing through the radiant coils absorb the heat generated by the fuel combustion process and partially vaporize into gases that eventually pass over cooler convection coils in the convection section above the radiant section, thereby transferring the heat within the radiant coils to oil contained in the convection coils (the convection process). The radiant panels, radiant floors and radiant arches are simply structural components that contain the heat produced by the burner within a confined area. The plenums are large, carbon steel chambers that connect to the compartment containing the burner and are used to distribute air to the heater’s burners. The chambers consist of an inlet damper that regulates airflow, and blades mounted on shafts that rotate to damper or regulate the flow of air into the combustion chamber. The blades open and close to ensure that a sufficient amount of air is available for fuel combustion. ISSUE: Whether the subject goods are classified as (1) parts of heat exchange units of subheading 8419.90.30, HTSUS; (2) parts of other machinery, plant or laboratory equipment for the treatment of materials by a process involving a change of temperature such as heating, under subheading 8419.90.95, HTSUS; (3) appliances similar to taps, cocks and valves for pipes, boiler shells, tanks, vats or the like, under subheading 8481.80.90, HTSUS; or (4) in subheading 8417, HTSUS, as parts of industrial furnaces. LAW AND ANALYSIS: Initially, we note that the matter is protestable under 19 U.S.C. §1514(a)(2) as a decision on classification. The protest was timely filed, within 180 days of liquidation of the entries at issue. See Miscellaneous Trade and Technical Corrections Act of 2004, Pub. L. 108-429, § 2103(2)(B)(ii), (iii)(codified as amended at 19 U.S.C. § 1514(c)(3)(2006)). Further Review of the protest is properly accorded pursuant to 19 C.F.R. § 174.24(a) because the protest decision is alleged to be inconsistent with a ruling of the Commissioner of Customs or his designee. 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 based on 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. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 8980, 54 Fed. Reg. 35127 (August 23, 1989). 8417 Industrial or laboratory furnaces and ovens, including incinerators, nonelectric, and parts thereof * * * * 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: 8419.90 Parts: 8419.90.30 Of heat exchange units Other: 8419.90.95 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. * * * * Note 2 to Section XVI, HTSUS, provides the following, in pertinent part: Subject to note 1 above, parts and accessories for machines, apparatus, instruments or articles of this chapter are to be classified according to the following rules: Parts and accessories which are goods included in any of the headings of this chapter or of chapter 84, 85 or 91 (other than heading 8487, 8548 or 9033) are in all cases to be classified in their respective headings; Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517…. It is undisputed that the instant merchandise consists of parts of other machines and are therefore classified pursuant to Note 2 to Section XVI, supra. Likewise, it is also undisputed that the instant radiant coils, radiant panels, radiant arches and radiant floors are not themselves prima facie classifiable as goods covered by the headings of chapter 84, 85 or 91, and as such are classified per Note 2(b) to Section XVI, as parts of the good for wh

Initially, we note that the matter is protestable under 19 U.S.C. §1514(a)(2) as a decision on classification. The protest was timely filed, within 180 days of liquidation of the entries at issue. See Miscellaneous Trade and Technical Corrections Act of 2004, Pub. L. 108-429, § 2103(2)(B)(ii), (iii)(codified as amended at 19 U.S.C. § 1514(c)(3)(2006)). Further Review of the protest is properly accorded pursuant to 19 C.F.R. § 174.24(a) because the protest decision is alleged to be inconsistent with a ruling of the Commissioner of Customs or his designee. 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 based on 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. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized.  The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 8980, 54 Fed. Reg. 35127 (August 23, 1989). 8417 Industrial or laboratory furnaces and ovens, including incinerators, nonelectric, and parts thereof * * * *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 heate