CLA–2 OT:RR:CTF:TCM H169058 AMM
Ms. Darlene Enlow
GE Wind Energy
7 Independence Pointe, Suite 300
Greenville, SC 29615
RE: Ruling Request; Classification of a Generator Bedplate for a Wind Turbine
Dear Ms. Enlow:
This is in response to your ruling requests, dated April 22, 2011, filed on behalf of GE Wind Energy, regarding the classification of a Generator Bedplate used in a wind turbine machine head. CBP has also taken into consideration your supplemental submission dated August 2, 2011.
FACTS:
On April 22, 2011, you filed a request for a binding ruling concerning the classification of a Generator Bedplate used in a wind turbine machine head. The Generator Bedplate is a large metal frame that acts as a foundation frame for the generator and some cables. It is a series of welded I-Beams incorporating lifting eyes. You assert that it is a part of the wind turbine machine head, also known as a “nacelle assembly.”
ISSUE:
Whether the subject Generator Bedplate is classified under heading 8412, HTSUS, as “Other engines and motors, and parts thereof”, or under heading 8503, HTSUS, as “Parts suitable for use solely or principally with the machines of heading 8501 or 8502”.
LAW AND ANALYSIS:
The 2011 HTSUS provisions at issue are:
8412 Other engines and motors, and parts thereof:
8412.90 Other:
8412.90.90 Other
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8503 Parts suitable for use solely or principally with the machines of heading 8501 or 8502:
Other:
8503.00.95 Other
Note 1 to Section XV (which covers Chapter 73), HTSUS, states, in pertinent part: “This section does not cover: … (f) Articles of section XVI (machinery, mechanical appliances and electrical goods); …”.
Note 2 to Section XVI (which covers Chapters 84 and 85), HTSUS, states, 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:
(a) 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;
(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.
* * *
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs), constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to consult, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89–80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The EN to heading 84.12 states, in pertinent part:
This heading covers engines and motors not included in the preceding headings (headings 84.06 to 84.08, 84.10 or 84.11) or in heading 85.01 or 85.02. It therefore covers non-electric engines and motors other than steam turbines and other vapour turbines, spark-ignition and compression-ignition internal combustion piston engines, hydraulic turbines, water wheels, turbo-jets, turbo-propellers or other gas turbines.
The heading includes reaction engines (other than turbo-jets), pneumatic power engines and motors, wind engines (windmills), spring-operated or weight-operated motors, etc., certain hydraulic power engines and motors, and certain steam or other vapour power units.
* * *
(D) WIND ENGINES (WINDMILLS)
This group includes all power units (wind engines or wind turbines), which directly convert into mechanical energy the action of the wind on the blades (often of variable pitch) of a propeller or rotor.
Usually mounted on a fairly tall metal pylon, the propellers or rotors have an arm perpendicular to their plane, forming a vane, or some similar device for orientating the apparatus according to the direction of the wind. The motive force is generally transmitted by reduction gearing through a vertical shaft to the power take-off shaft at ground level. Some wind motors (“depression motors”) have hollow blades in which a pressure reduction is developed by rotation, and is transmitted to the ground by airtight conduits to drive a small reaction turbine.
* * *
Electric generator units composed of wind motors mounted integrally with an electric generator (including those for operation in aircraft slipstreams) are excluded (heading 85.02).
* * *
The EN to heading 85.01 states, in pertinent part:
(II) ELECTRIC GENERATORS
Machines that produce electrical power from various energy sources (mechanical, solar, etc.) are classified here, provided they are not more specifically covered by any other heading of the Nomenclature.
* * *
The heading also excludes:
* * *
(c) Electric generators combined with prime movers (heading 85.02).
* * *
PARTS
Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the machines of this heading are classified in heading 85.03.
The EN to heading 85.02 states, in pertinent part:
(I) ELECTRIC GENERATING SETS
The expression “generating sets” applies to the combination of an electric generator and any prime mover other than an electric motor (e.g., hydraulic turbines, steam turbines, wind engines, reciprocating steam engines, internal combustion engines). Generating sets consisting of the generator and its prime mover which are mounted (or designed to be mounted) together as one unit or on a common base (see the General Explanatory Note to Section XVI), are classified here provided they are presented together (even if packed separately for convenience of transport).
* * *
PARTS
Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the machines of this heading are classified in heading 85.03.
A wind turbine converts wind energy into useful electrical energy. It is generally composed of three major components: the nacelle, blade assembly, and a tall metal tower. The nacelle of a wind turbine is a lozenge-shaped housing which contains mechanical equipment and electronics necessary to convert the rotational energy of a shaft into useful electrical energy. A complete wind turbine is classified under heading 8502, HTSUS, as an electric generating set. See New York Ruling Letter (NY) N099779, dated April 20, 2010; NY J84838, dated May 30, 2003; NY I83359, dated July 11, 2002.
According to the EN to heading 85.02, “[t]he expression ‘generating sets’ applies to the combination of an electric generator and any prime mover other than an electric motor (e.g., … wind engines …).” Wind turbines, when imported without an electric generator, are classified under heading 8412, HTSUS, specifically under subheading 8412.80, HTSUS, which provides for “Other engines and motors, and parts thereof: Other engines and motors”. See NY N058766, dated May 26, 2009.
In your submission, you assert that the instant Generator Bedplate is properly classified under heading 8412, HTSUS, which provides for “Other engines and motors, and parts thereof”, because it is a part of the wind engine portion of a wind turbine. According to Note 2(a) to Section XV, HTSUS, “Parts which are goods included in any of the headings of chapter 84 … are in all cases to be classified in their respective headings.” Therefore, it is proper to first consider whether the instant product is classified under heading 8412, HTSUS, as a part of a wind engine, before considering the other headings at issue.
The courts have considered the nature of “parts” under the HTSUS and two distinct though not inconsistent tests have resulted. See Bauerhin Technologies Limited Partnership, & John V. Carr & Son, Inc. v. United States, 110 F.3d 774, 779 (Fed. Cir. 1997). The first, articulated in United States v. Willoughby Camera Stores, 21 C.C.P.A. 322 (1933) requires a determination of whether the imported item is “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 778 (quoting Willoughby Camera, 21 C.C.P.A., at 324). The second, set forth in United States v. Pompeo, 43 C.C.P.A. 9 (1955), states that an imported item “dedicated solely for use” with another article is a part of that article provided that, “when applied to that use,” the article will not function without it. Pompeo, 43 C.C.P.A., at 14. Under either line of cases, an imported item is not a part if it is “a separate and distinct commercial entity.” ABB, Inc. v. United States, 28 Ct. Int’l Trade 1444, 1452-53 (2004); Bauerhin, 100 F. 3d, at 1452-32.
In NY N138276, dated December 16, 2010, CBP considered the classification of a bedplate cast, a large metal frame used in a wind turbine which “serves as a foundation frame for the wind turbine assembly within the machine head, providing structural support to the essential components of the wind motor, i.e. the housed bearing that fixes the mechanical shaft to which the hub and blades of the wind motor are connected and the gearbox that passes torque created by the rotation of the blades of the wind motor to the generator.” See NY N138276. This bedplate cast was classified under heading 8412, HTSUS, specifically under subheading 8412.90.90, HTSUS, which provides for parts of other engines and motors.
In your submission, you state that the instant Generator Bedplate is used to support the electric generator contained inside a completed wind turbine. It does not support the weight of any components of the wind engine, such as the rotor bearing, gears, shafts, brake, yaw system, or blade assembly, in the way that the product considered in NY N138276 does. Furthermore, a wind engine could function as such if the instant product was not attached, because the assembly would still be able to capture the kinetic energy of the wind and convert it to rotational energy if the instant product was missing. Therefore, the instant Generator Bedplate is not a “part” of a wind engine, and cannot be classified under heading 8412, HTSUS.
Heading 8503, HTSUS, provides for “Parts suitable for use solely or principally with the machines of heading 8501 or 8502”. Electric generators are classified in heading 8501, HTSUS, while electric generating sets are classified in heading 8502, HTSUS. If the instant merchandise can be considered a “part” of either an electric generator or and electric generating set, then it would be properly classified under heading 8503, HTSUS.
An electric generating set of heading 8502, HTSUS, consists of a combination of an electric generator and a prime mover, such as a wind engine. See EN(I) to 85.02. In your submission, you provided a cutaway drawing of a wind turbine nacelle which includes such components as a rotor bearing (or pillow block), bedplate cast, rotor shaft, gearbox, yaw drive, generator, and generator bedplate. According to the diagram, the bedplate cast supports the weight of the wind engine components (namely, the rotor bearing, rotor shaft, gearbox, and yaw drive), while the Generator Bedplate supports the weight of the generator. The bedplate cast and the Generator Bedplate are designed to support their respective loads and to ensure proper alignment between the wind engine and the generator. If the Generator Bedplate was removed, there would be no alignment between these two components of the wind turbine. The rotational energy would not be transferred to the generator, and no electricity would be generated. Therefore, the Generator Bedplate meets the definition of a “part” of a generating set, in that it is dedicated for use with the wind turbine, and that the wind turbine would no longer function if it was removed. Therefore, the instant Generator Bedplate is properly classified under heading 8503, HTSUS, as a part suitable for use solely or principally with a machine of heading 8502, HTSUS. See also Note 2(b) to Section XVI, HTSUS; EN 85.02. Specifically, the instant product is classified under subheading 8503.00.95, HTSUS, which provides for “Parts suitable for use solely or principally with the machines of heading 8501 or 8502: Other: Other”.
HOLDING:
Based upon the information presented, the instant Generator Bedplate is properly classified by operation of GRI 1 and Note 2(b) to Section XVI, HTSUS, under heading 8503, HTSUS, specifically under subheading 8503.00.95, HTSUS, which provides for “Parts suitable for use solely or principally with the machines of heading 8501 or 8502: Other: Other”. The 2011 column one, general rate of duty is 3% ad valorem.
A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Ieva O’Rourke, Chief
Tariff Classification and Marking Branch