CLA-2 OT:RR:CTF:EMAIN H301861 NVF
John B. Brew
Crowell Moring LLC
1001 Pennsylvania Ave NW
Washington, DC 20004
RE: Revocation of NY N300351; Classification of Refrigerator Gaskets
Dear Mr. Brew:
This letter is in response to your request, dated November 16, 2018, for reconsideration of New York Ruling Letter (“NY”) N300351, which was issued to your client, REHAU Industries LLC (“Rehau”), on September 26, 2018. In NY N300351, U.S. Customs and Border Protection (“CBP”) classified a refrigerator gasket under subheading 8505.19.20 of the Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof: Permanent magnets and articles intended to become permanent magnets after magnetization: Other: Composite good containing flexible magnets.” We have reviewed NY N300351, taken into consideration new factual information, and are revoking NY N300351 in accordance with the reasoning below.
Notice of the proposed action was published in the Customs Bulletin, Vol. 55, No. 30, on August 4, 2021. One comment was received in support of that notice. Therefore, CBP is revoking NY N300351 in accordance with the reasoning below.
FACTS:
The subject merchandise is a door gasket consisting of an outer PVC material with a flexible magnetic band insert. The article is used in doors of residential and commercial refrigerators. The polymer material allows the gasket to function as a seal and the magnetic insert acts to hold the door shut.
You also provide additional factual information that Rehau did not provide when submitting its initial ruling request. Specifically, in their condition as imported, the gaskets are cut to size and shaped to fit a specific refrigerator or freezer. The gaskets are attached to a refrigerator door after importation using various processes, including sliding the gasket into a channel in the door that is specifically designed to accept the gasket. After installation, the gasket acts as a seal between the refrigerator door and the cabinet. The magnet within the gasket assists the gasket in maintaining the seal by holding the door in place. In addition to holding the door shut, the magnet also provides some door-closing force for the door (i.e. if the door is left slightly open).
ISSUE:
Is a refrigerator gasket made from PVC and a magnetic strip classified under heading 8505, HTSUS as a magnet or under heading 8418, HTSUS as a part of a refrigerator?
LAW AND ANALYSIS:
The HTSUS provisions under consideration are as follows:
8505 Electromagnets; permanent magnets and articles intended to become permanent magnets after magnetization; electromagnetic or permanent magnet chucks, clamps and similar holding devices; electromagnetic couplings, clutches and brakes; electromagnetic lifting heads; parts thereof.
8418 Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps, other than the air conditioning machines of heading 8415; parts thereof.
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (“GRI”). GRI 1 provides that classification 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.
Note 2 to Section XVI, HTSUS, provides the following, in pertinent part:
Subject to note 1 to this section, note 1 to chapter 84 and to note 1 to chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:
Parts which are goods included in any of the headings of chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) 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….
The term “part” is not defined in the HTSUS. In the absence of a statutory definition, the courts have fashioned two distinct but reconcilable tests for determining whether a particular item qualifies as a part for tariff classification purposes. See Bauerhin Technologies Limited Partnership, & John V. Carr & Son, Inc. v. United States, 110 F.3d 774 (Fed. Cir. 1997). Under the first test, articulated in United States v. Willoughby Camera Stores, 21 C.C.P.A. 322 (1933), an imported item qualifies as a part only if can be described as an “integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article.” Bauerhin, 110 F.3d at 779. Pursuant to the second test, set forth in United States v. Pompeo, 43 C.C.P.A. 9 (1955), a good is a “part” if it is “dedicated solely for use” with a particular article and, “when applied to that use…meets the Willoughby test.” Bauerhin, 110 F.3d at 779 (citing Pompeo, 43 C.C.P.A. at 14); Ludvig Svensson, Inc. v. United States, 63 F. Supp. 2d 1171, 1178 (Ct. Int'l Trade 1999) (holding that a purported part must satisfy both the Willoughby and Pompeo tests). An item is not a part if it is “a separate and distinct commercial entity.” Bauerhin, 110 F.3d at.779.
In this case there is no dispute that that the instant merchandise is a “part” for the purposes of classification under the HTSUS and that the matter is therefore controlled by Note 2 to Section XVI, supra. As such, if the subject merchandise is prima facie classifiable under heading 8505, HTSUS, as a permanent magnet, then it will be classified under this provision per Note 2(a), thus eliminating the possibility of being classified as a part of the machine for which it is suitable for sole or principal use per Note 2(b). The instant gasket is comprised of a hollow PVC strip and a magnet that could be classified as a part of a refrigerator.
The merchandise at issue is comprised of both a PVC strip and a magnet combined to form an article that is ready for installation on a refrigerator door after importation. While heading 8505, HTSUS, covers part of the overall gasket (i.e., the magnet), it does not cover the entire item at issue. It is therefore not classified under heading 8505, HTSUS, by operation of Note 2(a) to Section XVI.
The gaskets at issue are designed to be attached to a refrigerator door inasmuch as the magnet component and PVC strip are combined, and the combination is cut to specified size and shape and is ready for attachment to a specific model of refrigerator door. The gasket acts as a seal between the refrigerator door and the cabinet. In addition to holding the door shut, the magnet also provides some door-closing force for the door. Each imported gasket is dedicated solely for use with a specific refrigerator door and plays an integral role in containing cooled air inside a refrigerator cabinet. Therefore, we find that the gaskets at issue are suitable for sole or principal use with refrigerators of heading 8414, HTSUS, and are therefore properly classified as parts of refrigerators by operation of Note 2(b) to Section XVI.
HOLDING:
By application of GRIs 1 (Note 2(b) to Section XVI) and 6, the refrigerator gasket is classified under heading 8418, HTSUS specifically subheading 8418.99.80, HTSUS which provides for, “Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps, other than the air conditioning machines of heading 8415; parts thereof: Parts: Other: Other.” The general column one rate of duty is free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8418.99.80, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8418.99.80, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
EFFECT ON OTHER RULINGS:
NY N300351, dated November 16, 2018, is REVOKED.
In accordance with 19 U.S.C. 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division