H337342

HQ H337342 May 24, 2024 OT:RR:CTF:EMAIN H337342 PF CATEGORY: Classification TARIFF NO.: 8414.40.00 Center Director Center of Excellence and Expertise - Machinery U.S. Customs and Border Protection 109 Shiloh Drive, Suite 300 Laredo, TX 78045 Attn: Wendell O. Jones, International Trade Analyst RE: Protest and Application for Further Review No: 1703-21-112219; Classification of Compressors Dear Center Director: The following is our decision as to Protest and Application for Further Review No. 1703-21-112219, which was filed on February 22, 2021, on behalf of Atlas Copco Rental LLC (protestant). The protest pertains to the classification of compressors under the Harmonized Tariff Schedule of the United States (HTSUS). The subject merchandise was entered by protestant between October 4, 2019 and March 6, 2020 and liquidated between August 28, 2020 and January 29, 2021. U.S. Customs and Border Protection (CBP) liquidated the compressors under subheading 8414.40.00, HTSUS, which provides for “Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof: Air compressors mounted on a wheeled chassis for towing.” On February 22, 2021, protestant filed a protest and AFR regarding the tariff classification of the subject merchandise and claimed that the correct classification of the subject merchandise should be in subheading 8414.80.16, HTSUS, which provides for “Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof: Other, except parts: Other.” FACTS: The protestant describes the merchandise as follows: Each of the subject compressors are portable which makes them easy to load and unload. Additionally, each compressor is mounted on small wheels, relative to their overall size, which allows for easy maneuverability. The small wheels on each compressor help facilitate movement locally within a jobsite although they render it infeasible and unsafe for the compressor to be towed at even minimum speed limits on the road. Moreover, the compressors do not include a license plate holder, do not include brakes for agile stopping, nor are they safe to tow on the open road. The compressors are used to provide compressed air for heavy industrial applications. The below models are all identical, but just have varying compressor sizes. The subject merchandise is further described in the protest as the following: The PTS 1600 is a diesel driven compressor and has two variants, the PTS 1600 4i and PTS 1600 Tier 4 Final. This machine has an operating pressure range of 10-150 pounds per square inch (psi). The PNS 1250 is a diesel driven compressor that provides an operating pressure range of 90-350 psi. The PTS 800 is a diesel driven compressor and has two variants, the PTS 800 T3 and the PTS 800 T4F. This machine has an operating pressure range of 7-150 psi. ISSUE: Whether the compressors are classifiable in subheading 8414.40, HTSUS as air compressors mounted on a wheeled chassis for towing or in subheading 8414.80, HTSUS, as other air pumps? LAW AND ANALYSIS: Initially, we note that the matters protested are protestable under 19 U.S.C. §1514(a) (2) as decisions on classification. The protest was timely filed, within 180 days of liquidation of the first entry. (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 Protest No. 1703-21-112219 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with a previous CBP decision concerning substantially similar merchandise. Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRls). 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 GRls 2 through 6 may then be applied in order. 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 2019 HTSUS subheadings under consideration are as follows: 8414 Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof: 8414.40.00 Air compressors mounted on a wheeled chassis for towing… * * * 8414.80 Other, except parts: 8414.80.16 Other… There is no dispute that the subject merchandise is classified under heading 8414, HTSUS. Rather, the issue is the classification at the subheading level and whether the subject compressors are “air compressors mounted on a wheeled chassis for towing” as provided for in subheading 8414.40, HTSUS or “other” as provided for in subheading 8414.80, HTSUS. Accordingly, GRI 6 applies. In determining the proper subheading for the instant compressors under the HTSUS, we compare subheadings at the same level of indentation, before considering the text of subheadings at subsequent levels of indentation. As a result, we first must consider whether the compressors are “air compressors mounted on a wheeled chassis for towing,” as classification in this subheading would preclude classification in a subheading for “other” articles. The subject compressors are moved by being towed. The term “tow” is not defined in the HTSUS or the Explanatory Notes (ENs). As such, it must be construed in accordance with its common meaning, which may be ascertained by reference to “dictionaries, scientific authorities, other reliable information sources,” “lexicographic and other materials” and to the pertinent ENs. C.J. Tower & Sons v. United States, 69 C.C.P.A. 128, 673 F.2d 1268, 1271 (1982); Simod America Corp. v. United States, 872 F.2d 1572, 1576 (Fed. Cir. 1989); GRK Can., Ltd. v. United States, 761 F.3d 1354, 1357 (Fed. Cir. 2014). Merriam-Webster’s Online Dictionary defines “tow” as “to draw or pull along behind: haul.” Collins Online Dictionary defines “tow” as “to pull or drag behind.” The Cambridge Dictionary online defines “tow” as “to pull a car, boat, etc. along, fastened behind another vehicle or boat:” The dictionary definition of “tow” is consistent with the ENs of Heading 8716, HTSUS, which explain that vehicles of this heading are designed to be towed by other vehicles (tractors, lorries, trucks, motorcycles, etc.), to be pushed or pulled by hand, to be pushed by foot or to be drawn by animals. The subject compressors meet the definition of tow. They are mounted on a chassis with wheels and feature a tow bar that allows them to be hauled or pulled. Based on the common definition of tow and the physical characteristics of the subject compressors, they are appropriately classifiable in subheading 8414.40, HTSUS. Moreover, based on the physical characteristics of the compressors, we are unpersuaded by protestant’s argument that they are not intended to be towed. Protestant relies on New York Ruling (NY) N248806, dated January 15, 2014, to support classification of the subject compressors in subheading 8414.80, HTSUS. In NY N248806, CBP classified a rotary screw compressor with a “forkliftable” frame, designed for all weather operations in subheading 8414.80, HTSUS. Notably, the compressor was imported without axles and wheels. The compressor in NY N24

Initially, we note that the matters protested are protestable under 19 U.S.C. §1514(a) (2) as decisions on classification. The protest was timely filed, within 180 days of liquidation of the first entry. (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 Protest No. 1703-21-112219 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with a previous CBP decision concerning substantially similar merchandise.Classification under the HTSUS is made in accordance with the General Rules ofInterpretation (GRls). 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 GRls 2 through 6 may then be applied in order. 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 2019 HTSUS subheadings under consideration are as follows:8414 Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof:8414.40.00 Air compressors mounted on a wheeled chassis for towing…* * *8414.80 Other, except parts:8414.80.16 Other…There is no dispute that the subject merchandise is classified under heading 8414, HTSUS. Rather,