CLA-2 RR:CR:GC 964893 GOB
Port Director
U.S. Customs Service
423 Canal Street
New Orleans, LA 70130
RE: Protest 2002-00-100529; Urea stripper machinery
Dear Port Director:
This is our decision regarding Protest 2002-00-100529, filed on behalf of Triad Nitrogen LLC (“protestant”) concerning the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of a urea stripper machine.
FACTS:
The file reflects the following. The entry was filed on April 19, 1997, and was liquidated on May 26, 2000. The protest was filed on August 2, 2000.
The merchandise was entered under subheading 8419.50.50, HTSUS, as: “Machinery, plant or laboratory equipment, whether or not electrically heated, 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: . . . Heat exchange units: . . . Other.” The entry was liquidated under subheading 8419.89.90, HTSUS. as: “Machinery, plant or laboratory equipment, whether or not electrically heated, 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: . . . Other machinery, plant or equipment: . . . Other: . . . Other: . . . Other.”
The protestant describes the merchandise in pertinent part as follows:
. . . The urea stripper at issue in this matter constitutes a “shell and tube” heat exchange unit. The terms “shell and tube heat exchange unit” and “urea stripper” are customary and synonymous phrases used among engineers involved in urea processing in discussing the urea stripper. The heat exchange unit in the instant case is cylindrical in shape . . . Specifically, the shell and tube heat exchange unit has two basic parts. The “tube side” of the exchanger includes: (1) the spaces in the top channel; (2) the spaces inside the tubes; and (3) the spaces in the bottom channel. The second area of the exchanger is called the “shell side” of the exchanger which includes the space outside of the tubes but inside the cylindrical shell . . .
The shell and tube heat exchange unit in the instant matter, serves to exchange heat between the urea synthesis process liquid in the tube side of the exchanger and steam located on the shell side of the exchanger . . . A urea solution, that is approximately 127 degrees cooler than the steam, flows through the tube side of the heat exchange unit . . . At the same time, steam is flowing around the tubes through the shell side of the heat exchange unit which exchanges heat with the urea solution – the steam and the solution never mix. The urea solution and resulting vapor exit the heat exchange unit.
ISSUE:
What is the tariff classification under the HTSUS of a urea stripper?
LAW AND ANALYSIS:
We note initially that the protest was timely filed under the statutory and regulatory provisions for protests, 19 U.S.C. 1514(c)(3)(A) and 19 CFR 174.12(e)(1).
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). 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 GRI’s may then be applied.
The Harmonized Commodity Description and Coding System Explanatory Notes (“EN’s”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN’s provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80.
The HTSUS provisions under consideration are as follows:
8419 Machinery, plant or laboratory equipment whether or not electrically heated, 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:
8419.50.50 Other
* * * * * *
Other machinery, plant or equipment:
8419.89 Other:
Other:
8419.89.90 Other.
EN 84.19 provides in pertinent part as follows:
The heading includes a very wide range of machinery and plant of the types described below.
(I) HEATING OR COOLING PLANT AND MACHINERY
This group covers plant of general use in many industries for the simple treatment of materials by heating, boiling, cooking, concentration, evaporation, vaporisation, cooling, etc. They include :
(A) Vessels, vats, etc., of various kinds for heating or cooling :
(1) Vessels, vats, etc., for indirect heating or cooling with double walls or bottoms incorporating provision for the circulation of steam, chilled brine or other heating or cooling media. However, double-walled or double-bottomed vessels fall in Section XIV or Section XV (e.g., heading 73.09) if they do not have such provision for circulating heating or cooling media (e.g., heat-insulated containers) or in heading 84.18 if they incorporate an evaporator of a refrigerating unit (direct cooling).
(2) Single-wall vessels, vats, etc., incorporating provision for direct heating (including heating by perforated steam coils) other than such vessels normally used in the household (heading 73.21, generally). In general, the industrial types are distinguished by their large size and solid construction, or the provision of filters or condensing domes or of mechanical devices such as agitators or tippers.
Such vessels, whether of the single or double-walled type, are frequently constructed for working under high pressure (e.g., autoclaves), or at reduced pressures for special purposes, particularly in the chemical and allied industries.
Vessels fitted with mechanical devices but not incorporating means of direct or indirect heating fall in heading 84.79 unless clearly designed as machinery of a type specified in another heading.
This group of heating vessels includes pasteurisers, sometimes operating at reduced pressure, used to submit food or drink products (milk, butter, wines, beers, etc.) to pre-determined temperatures to eliminate harmful micro-organisms.
(B) Heat exchange units in which a hot fluid (hot gas, steam or hot liquid) and a cold fluid are made to traverse parallel paths, but usually in opposite directions, separated by thin metal walls in such a manner that the one fluid is cooled and the other heated. These units are usually of the three following types, viz., in the form of :
(i) Concentric tube systems : one fluid flows in the annular interval, the other in the central tube.
(ii) A tubular system for the one fluid, enclosed in a chamber through which flows the other fluid.
or (iii) Two parallel series of interconnected narrow chambers formed of baffle plates.
Based upon the documentation in the file, this is how the urea stripper functions. Heat is being supplied to the urea synthesis process liquid by the use of steam. Carbon dioxide is introduced at one end of the stripper and apparently moves up the tubes in which the urea synthesis process fluid runs down the sides. In the tubes, the carbon dioxide comes in contact with the hot urea synthesis process liquid, thereby producing urea solution and carbamate gas. The urea solution exits the stripper at one end and the carbamate gas exits at the other end. In essence, the process may be described as urea synthesis process liquid plus carbon dioxide in the presence of heat yields urea solution and carbamate gas.
The protestant states, in pertinent part: “. . . a copy of the specifications prepared by Stamicarbon for the inquiry and purchase of a replacement for the Triad high pressure urea stripper. Stamicarbon designed, developed and licensed the urea process utilized by Triad.”
We have examined numerous sources in researching the urea stripper and its function. One Internet source (www.cheresources.com/ureamodeling2.shtml) provides as follows with respect to “Stamicarbon Process (Carbon Dioxide Stripping)”:
NH3 and CO2 are converted to urea via ammonium carbamate at a pressure of approximately 140 bar and a temperature of 180-185 degrees C. The molar NH3/CO2 ratio applied in the reactor is 2.95. This results in a CO2 conversion of about 60% and an NH3 conversion of 41%. The reactor effluent, containing unconverted NH3 and CO2 is subjected to a stripping operation at essentially reactor pressure, using CO2 as stripping agent. The stripped-off NH3 and CO2 are then partially condensed and recycled to the reactor. The heat evolving from this condensation is utilized to produce 4.5 bar steam, some of which can be used for heating purposes in the downstream sections of the plant. Surplus 4.5 bar steam is sent to the turbine of the CO2 compressor.
The NH3 and CO2 in the stripper effluent are vaporized in a 4 bar decomposition stage and subsequently condensed to form a carbamate solution, which is recycled to the 140 bar synthesis section. Further concentration of the urea solution leaving the 4 bar decomposition stage takes place in the evaporation section, where a 99.7% urea melt is produced.
Another Internet source (www.efma.org/Publications/BAT%202000/Bat05/section04.asp) provides that: “The commercial synthesis of urea involves the combination of ammonia and carbon dioxide at high pressure to form ammonia carbamate which is subsequently dehydrated by the application of heat to form urea and water.”
The McGraw-Hill Encyclopedia of Science and Technology (1995) provides in pertinent part as follows:
The process for urea synthesis in commercial use today is the pressure synthesis from ammonium carbamate. Ammonia and carbon dioxide are reacted under pressure of 170-400 atm (1.2-2.8 megapascals), with melt temperature maintained in the range of 347-410 degrees F or 175-210 degrees C . . . The partial dehydration of ammonium carbamate formed in the reactor produces urea and water. The mixture let down in pressure from the reactor is stripped of ammonia and carbon dioxide, and the aqueous solution of urea is concentrated for direct granulation . . .
It is our determination that, while heat is employed in the function of the subject urea stripper, the urea stripper is not a heat exchange unit. The urea stripper does not meet the description of heat exchange units in EN 84.19 (I) (B), excerpted above.
We find that the urea stripper is classified in subheading 8419.89.90, HTSUS, as: “Machinery, plant or laboratory equipment whether or not electrically heated, 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: . . . other machinery, plant or equipment: . . . Other: . . .
Other: . . . Other.”
We believe that the following rulings have some relevance with respect to our classification in this case. In NY 871738 dated March 4, 1992, Customs found the following article to be classified in subheading 8419.89.50, HTSUS (the predecessor provision to subheading 8419.89.90, HTSUS):
The process reactor and gas cooler are an integral assembly of equipment forming part of a processing system utilized to produce liquid nitric acid from a mixture of air and ammonia . . . A mixture of air and gaseous ammonia enters the reactor under pressure through the gas inlet and is evenly distributed over a catalyst bed. Upon contact with the catalyst a chemical reaction occurs producing nitrous gases and a large amount of heat. The increased temperature of the gases caused by the intense heat is transferred to water that is then superheated and vaporized in the cooler.
Similarly, in NY 858006 dated November 29, 1990, Customs found the following article to be classified in subheading 8419.89.50, HTSUS:
The reactor is used to produce polyvinyl chloride by a process of addition polymerization. This polymerization results from vinyl chloride and initiator reacting under isothermal conditions. The mixing of these two substances at a maintained temperature of 122 to 158 degrees F. creates the polymer, polyvinyl chloride. The heat, which is supplied in the form of steam, is essential to the chemical reaction between the vinyl chloride and the initiator, and is not secondary to the mixing of the two ingredients. After polymerization, the reactor’s contents are cooled by condensation of the steam.
While the articles in these two rulings are not the same as the urea stripper, we believe there is some similarity in that heat is essential to the reaction.
HOLDING:
As detailed above, the urea stripper is classified in subheading 8419.89.90, HTSUS, as: “Machinery, plant or laboratory equipment whether or not electrically heated, 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: . . . Other machinery, plant or equipment: . . . Other: . . . Other: . . . Other.”
You are instructed to DENY the protest.
In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision the Office of Regulations
and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.treas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division