CLA-2 OT:RR:CTF:TCM H083278DSR
Mr. Ralph Garcia
Mitsubishi Motors North America, Inc.
6400 Katella Avenue
Cypress, CA 90630
RE: Revocation of NY N075384; tariff classification of a motor vehicle heater controller assembly
Dear Mr. Garcia:
This letter is in reference to New York Ruling Letter (NY) N075384, issued to you on October 7, 2009, regarding the classification under the 2009 Harmonized Tariff Schedule of the United States (HTSUS) of a motor vehicle heater controller assembly (“assembly”) designed exclusively for use in Mitsubishi automobiles. The ruling classified the assembly under subheading 8708.29.50, HTSUS, which provides for “Parts … of … motor vehicles …: Other parts … of bodies …: Other: Other,” dutiable at 2.5% ad valorem.
CBP has reviewed the tariff classification of the assembly and has determined that the cited ruling is in error. Therefore, NY N075384 is revoked for the reasons set forth in this ruling.
FACTS:
The item in question is identified as a “Heater Controller Assembly (part number 7820A064HA),” and its primary function is to control the airflow and air temperature within an automobile for the comfort of the driver and passengers. As a secondary function, you state that the assembly provides a mounting surface for several air conditioning components as well as an aesthetic finish that matches the contours of the instrument panel.
A thorough examination of the assembly identifies the following components:
One heater controller – a mounting subcomponent made from molded plastic incorporating a printed circuit board (PCB) populated with active and passive components including two lamp-holders with incandescent lamps
Three light emitting diode (LED) lamps
One electrical rotary switch that regulates fan speed
Three electrical push-button switches for the vehicle’s rear defogger and A/C on/off control, and the recirculation of interior air
Two mechanical rotary levers with Bowden cables for directing air flow and temperature
One heater control cover panel with identifying labels
Three plastic knobs
ISSUE:
Whether the motor vehicle heater controller assembly in question is classified under heading 8708, HTSUS, as a part or accessory of the motor vehicles of headings 8701 to 8705; or under subheading 8537.10.90, HTSUS, as a base equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity.
LAW AND ANALYSIS
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 2 through 6 may then be applied in order. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89 80, 54 Fed. Reg. 35127 (August 23, 1989).
The HTSUS provisions under consideration in this case are as follows:
8537 Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517:
* * *
8708 Parts and accessories of motor vehicles of headings 8701 to 8705.
* * * *
Initially, Section XVI, Note 1(l), HTSUS, excludes articles of Section XVII. Heading 8708, parts and accessories of motor vehicles, is in Section XVII. However, Section XVII, Note 2(f), HTSUS, states the following:
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: … Electrical machinery or equipment (chapter 85).
The question, therefore, is whether the heater assembly is described by a provision in Chapter 85.
Heading 8536, HTSUS, covers electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits (for example, switches, relays, fuses, surge suppressors, plugs, sockets, lamp-holders and other connectors, junction boxes), for a voltage not exceeding 1,000 volts. The subject heater assembly consists of several individual, but interconnected, switches intended to contribute together to electrically control or provide power (not exceeding 1,000 volts) to several apparatus of a motor vehicle, i.e., the vehicle’s heater, fan, rear defogger, and A/C. Each of those switches meets the plain language of heading 8536, HTSUS.
In order to be classified in heading 8537, HTSUS, a device must be equipped with two or more apparatus of heading 8535 or 8536, HTSUS. Under General Note 4 to Section XVI, machines composed of interconnected units, intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or 85, falls to be classified as a functional unit in the heading appropriate to that function. Also, the ENs to heading 8537, HTSUS, state the following:
[The goods of the heading] consist of an assembly of apparatus of the kind referred to in the two preceding headings (e.g., switches and fuses) on a board, panel, console, etc., or mounted in a cabinet, desk, etc. They usually also incorporate meters, and sometimes also subsidiary apparatus such as transformers, valves, voltage regulators, rheostats or luminous circuit diagrams.
Contrary to our statement in NY N075384 that the assembly “only incorporates one electrical item classifiable in HTSUS headings 8535 or 8536; a Heater Blower Switch classifiable in HTSUS heading 8536,” the subject heater assembly meets the plain language of heading 8537, HTSUS because it is an assembly of “two or more” devices of heading 8536, HTSUS. By operation of Section XVII, Note (2)(f), HTSUS, it is eliminated from consideration as a good of heading 8708, HTSUS.
HOLDING:
By application of GRI 1, the subject merchandise identified as “Heater Controller Assembly (part number 7820A064HA),” is classifiable under heading 8537, HTSUS. Specifically, it is classifiable under subheading 8537.10.90, HTSUS, which provides for “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517: For a voltage not exceeding 1,000 volts: Other.” The column one, general rate of duty is 2.7%.
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.
EFFECT ON OTHER RULINGS:
NY N075384, dated October 7, 2009, is hereby revoked.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division