CLA-2 CO:R:C:G 083270 JMH
Mr. M. L. Pringle
North Atlantic Technologies, Inc.
12900 Whitewater Drive
Minnetonka, MN 55343
RE: Components for air to air plate-type heat exchangers
Dear Mr. Pringle:
Your letter of September 16, 1988, requesting a
classification ruling according to the Harmonized Tariff Schedule
of the United States Annotated (HTSUSA) for components of air to
air plate-type heat exchangers has been referred to this office
for a reply.
FACTS:
The merchandise in question are components for industrial
air to air plate-type heat exchangers. Such heat exchangers act
primarily to preheat combustion air in boilers, incinerators,
fired heaters and thermal plants. The four articles to be
classified are flat air plates, flat flue plates, an end wall
assembly, and a corner post. All of the components are made of
steel and are to be imported from Korea and Poland.
Air plates and flue plates are rectangular pieces. They are
notched at the corners and are dimpled all over. The dimpling
varies according to the use. Deeper dimples allow more space
through which flue gas impurities may pass. This greater space
prevents clogging.
The end wall assembly consists of a plate to which a number
of different stiffeners and angles have been welded, both
horizontally and vertically. This assembly supports all the
plates within the exchanger.
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The corner post is composed of several pieces of steel
welded together. It holds the two end walls together similar to
the bread in a sandwich and the plates are analogous to the
sandwich's filling.
ISSUE:
Whether these components of heat exchangers are properly
classifiable under the HTSUSA according to their content or their
use.
LAW AND ANALYSIS:
The classification of merchandise under the HTSUSA is
governed by the General Rules of Interpretation (GRI's). GRI 1,
HTSUSA, states in part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes and...according to the
following provisions..." The competing headings in this instance
are those within Chapter 72, HTSUSA, which describe basic steel
mill products, and the headings of Chapter 84, HTSUSA, which
describe steel products that have been advanced.
It is the opinion of this office that the steel components
at issue have been worked and advanced into parts of machinery.
The end walls and corner posts are advanced beyond an angle,
shape or section. The notching, dimpling, and welding of these
articles has altered their state from mere articles of base
metals to parts of a heat exchanger. Therefore, according to
Section XV, Note 1(f), HTSUSA, they are excluded from the
headings of Chapter 72 and must be classified by their use.
The appropriate heading for these products is heading 8419,
HTSUSA. This heading describes:
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...other than machinery or plant of a
kind used for domestic purposes...parts
thereof...
8419.90.30 Parts of heat exchange units...
You have stated that these components are used in industrial
heat exchangers and the function of the heat exchangers is
described by this heading. Since non-domestic heat exchangers
are classified within heading 8419, the parts of these heat
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exchangers are also classified within heading 8419. Therefore,
the air plates, flue plates, end wall assemblies, and corner post
are to be classified within subheading 8419.90.30, HTSUSA.
These heat exchanger components are not subject to any
voluntary restraint agreements. They are also not subject to any
special licensing requirements.
HOLDING:
Air plates, flue plates, end wall assemblies, and corner
posts, which are components of air to air plate-type heat
exchangers, are properly classified within subheading 8419.90.30,
HTSUSA. The rate of duty is 4.2 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division