CLA-2 OT:RR:CTF:TCM H254022 ALS
Port Director
U.S. Customs and Border Protection
6747 Engle Road
Middleburg Heights, Ohio 44130
Attn.: Kimberly Williams, Import Specialist
RE: Application for Further Review Protest No. 4101-14-100159; Tariff classification of an Oil Cooler Core
Dear Port Director:
This letter is in reply to an Application for Further Review (“AFR”) of Protest number 4101-14-100159, filed on behalf of the importer, Allison Transmission, Inc. (also referred to herein as “Protestant”) on February 4, 2014. The Protest is against U.S. Customs and Border Protection’s (“CBP’s”) tariff classification of the above-referenced Oil Cooler Core under subheading 8708.99.8180 of the Harmonized Tariff Schedule of the United States (“HTSUS”).
FACTS:
The subject article is an oil cooler core. The Protestant describes the oil cooler core (also referred to herein as “OCC”) as being “made of stainless steel and [consisting] of a stack of seventeen hollow plates through which automatic transmission fluid flows horizontally. The core has one inlet and one outlet port that allows the [automatic transmission fluid] to flow in and out of the oil cooler core… The [OCC] is attached to the back (drive shaft) end of the transmission assembly.” The Protestant also describes the function of the oil cooler, on to which the OCC is mounted, as follows:
…to cool Automatic Transmission Fluid used in semi-trucks equipped with an Allison [Transmission, Inc.] transmission… In operation, hot [automatic transmission fluid] travels from the transmission to the oiler cooler and is run through the tubular system of the oil cooler core and heat is exchanged with the glycol based coolant as it transverses through the enclosed oil cooler housing.
The Protestant had entered numerous OCCs under several entries under subheading 8419.90.3000, HTSUS, as other parts of the heat exchange units. CBP liquidated the entries over the course of several weeks, beginning October 11, 2013, under subheading 8708.99.8180, HTSUS, as other parts of motor vehicles of 8701 to 8705. Semi-trucks are motor vehicles of heading 8704. The Protestant asserts that the OCCs are properly classified under subheading 8419.90.3000.
ISSUE:
Is the Oil Cooler Core, as described above, properly classified under heading 8419, 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; instantaneous or storage water heaters, nonelectric; parts thereof”, or under heading 8708, HTSUS, which provides for “Parts and accessories of the motor vehicles of headings 8701 to 8705?”
LAW AND ANALYSIS:
Initially, we note that the Protest was timely filed on February 4, 2014, which is within 180 days of the earliest date of the liquidation among the subject entries, October 11, 2013. See 19 U.S.C. §1514(c)(3)(B). Additionally, CBP’s classification of the merchandise is a protestable matter under 19 U.S.C. §1514(a)(2). Further Review of Protest No. 4101-14-100159 is properly accorded to the Protestant pursuant to 19 CFR 174.24(b).
Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRI”) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (“ARI”). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings 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, GRIs 2 through 6 may be applied in order.
The following headings and subheadings of the HTSUS are under consideration in this case:
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:
Other machinery, plant or equipment:
8419.90 Parts:
8419.90.30 Of heat exchange units…
* * *
8708 Parts and accessories of the motor vehicles of headings 8701 to 8705:
8708.99 Other:
8708.99.81 Other. . .
* * * * * * * * *
Note 2(b) to Section XVI, HTSUS, of which heading 8419 is part, provides the following:
2. 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:
(b) 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...
Note 2(e) to Section XVII, HTSUS, of which heading 8708 is a part, provides the following:
2. The expressions "parts" and "parts and accessories" do not apply to the following articles, whether or not they are identifiable as for the goods of this section:
(e) Machines or apparatus of headings 8401 to 8479, or parts thereof; articles of heading 8481 or 8482 or, provided they constitute integral parts of engines or motors, articles of heading 8483…
Thus, the OCC is not classifiable as a part under Section XVII, and by extension heading 8708, if it is a part of a machine of headings 8401 to 8479. In this case, we must determine whether or not the OCC is a part of machinery of heading 8419.
The Protestant contends that the OCC is classifiable under heading 8419, HTSUS, because it is an “integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article,” quoting United States v. Willoughby Camera Stores, Inc., 21 C.C.P.A. 322, 324 (1933), (aff’d Bauerhin Technologies Limited Partnership v. United States, 110 F.3d 774, 779 (Fed. Cir. 1997). The Protestant argues that the OCC is dedicated for use with the complete oil cooler assembly and that it cannot perform its intended function in its imported state and without being installed as part of the oil cooler assembly.
Upon review of the Protestant’s arguments and the information provided with its submission, we find that the subject OCC is an article that is principally used with machinery for the treatment of materials by a process involving a change in temperature. In this case, the material being treated is transmission fluid, and the material is being cooled. Because the instant merchandise is prima facie classifiable under heading 8419, HTSUS, its classification is resolved by operation of Note 2(b) to Section XVI, and it is therefore excluded from being classified under heading 8708 by application of Note 2(e) to Section XVII.
Thus, the Oil Cooler Core is properly classified under heading 8419, HTSUS, which provides for "Machinery, plant or laboratory equipment, whether or not electrically heated… for the treatment of materials by a process involving a change in temperature such as heating: Heat exchange units: Other." Specifically, the Oil Cooler Core is properly classified under subheading 8419.90.30, HTSUS, as “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: Other machinery, plant or equipment: Parts: Of heat exchange units…”
HOLDING:
By application of GRI 1 and Note 2(b) to Section XVI, HTSUS, the Oil Cooler Core is properly classified under heading 8419, HTSUS, which provides for "Machinery, plant or laboratory equipment, whether or not electrically heated… for the treatment of materials by a process involving a change in temperature such as heating: Heat exchange units: Other." Specifically, the Oil Cooler Core is properly classified under subheading 8419.90.30, HTSUS, as “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: Other machinery, plant or equipment: Parts: Of heat exchange units…” The general column one rate of duty, for merchandise classified in this subheading is Free.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
The Protest should be GRANTED in accordance with the LAW AND ANALYSIS section above. A copy of this ruling should be attached to the CBP Form 19 or equivalent document and provided to the protestant as part of the notice of action on the protest.
Sixty days from the date of the decision the Office of International Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division