OT:RR:CTF:CPMM H309804 KSG
Port Director U.S. Customs and Border Protection Port of New York/ New Jersey
1210 Corbin Street Elizabeth, NJ 07201 Attn: Maria Teresa Vasquez, Import Specialist RE: Application for Further Review of Protest No. 4601-20-108134; Classification of downrods for ceiling fans Dear Port Director: The following is our decision regarding the Application for Further Review (“AFR”) of Protest No. 4601-20-108134, timely filed by Thomas L. Jarvis on behalf of LG Sourcing Inc. or (“Protestant”). The Protest pertains to the tariff classification of ceiling fan downrods, which the protestant entered under subheading 8414.90.10 of the Harmonized Tariff Schedule of the United States (“HTSUS”).
The subject merchandise was entered by protestant on January 9, 2019. On November 8, 2019, CBP liquidated the entry under subheading 7306.30.50, HTSUS, which provides for “Other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel: Other, welded, of circular cross section, of iron or nonalloy steel: Having a wall thickness of 1.65 mm or more: Other.” On January 10, 2020, protestant filed a protest and AFR regarding the tariff classification of the subject merchandise claiming that the correct classification of the subject merchandise is subheading 8414.90.10, HTSUS.
FACTS:
This case involves ceiling fan downrods which are metal components used to connect the ceiling fan to the mounting hardware on the ceiling. The ceiling fan downrods are of various lengths and finishes. The photograph submitted shows that the downrods are sold separately from ceiling fans.
The rods are cylindrical and have threading at one end. One end has three holes drilled in it and the other end has two holes drilled.
ISSUE:
Whether the downrod is classified in heading 7306, HTSUS, as a tube of iron or steel, or in heading 8414, HTSUS as a part of a fan?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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 GRIs 2 through 6 may then be applied in order.
The HTSUS headings under consideration are the following:
7306 Other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel
8414 Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof:
The term "part" is not defined in the HTSUS or in the Explanatory Notes.
In Bauerhin Techs. Ltd. P’ship. v. United States, 110 F.3d 774 (Fed. Cir. 1997), the court identified two distinct lines of cases defining the word “part.” Consistent with United States v. Willoughby Camera Stores, Inc., 21 C.C.P.A. 322, 324 (1933), one line of cases holds that a part of an article “is something necessary to the completion of that article. . . . [W]ithout which the article to which it is to be joined, could not function as such article.” The other line of cases evolved from United States v. Pompeo, 43 C.C.P.A. 9, 14 (1955), which held that a device may be a part of an article even though its use is optional and the article will function without it, if the device is dedicated for use upon the article, and, once installed, the article will not operate without it. The definition of “parts” was also discussed in Rollerblade, Inc. v. United States, 282 F.3d 1349, 1353 (Fed. Cir. 2002), wherein the United States Court of Appeals for the Federal Circuit (“CAFC”) defined parts as “an essential element or constituent; integral portion which can be separated, replaced, etc.”
In HQ H027029, dated March 3, 2010, automobile fan shrouds, were classified as parts of the fan. In the ruling, CBP noted that… "each fan shroud completes the fan assembly used in the air conditioning condenser or the radiator, and provides the structural mounting necessary to support the fan blades and the fan motor. Further, each shroud provides a means to direct the air flow produced by the fan blades to the vehicle’s radiator or air conditioning condenser. Accordingly, each fan shroud is solely or principally used with an automotive fan."
In HQ 964899, dated January 8, 2001, an aluminum fan housing was classified in heading 8414 as a part of a fan. While the ruling does not factually describe the fan housing in detail, a fan housing completes the fan assembly and like the fan shroud, provides the structural framework of a fan. We note that in HQ H029003, dated March 3, 2010, the terms "fan shroud" and "fan housing" were used interchangeably to mean the same article and it was classified in heading 8414 as a part of a fan used to house the fan blades.
In NY N073243, dated September 18, 2009, classified a downrod for a ceiling fan in subheading 7306.30.50, HTSUS. The article in NY N073243 is a carbon steel welded pipe/tube available in various lengths, depending on customer preference. Produced with outside diameters ranging from 20.82 mm to 21.33 mm, the pipes have wall thicknesses from 1.77 mm to 2.15 mm. The down rod has two holes drilled on each end and extends from the ceiling bracket to the top of the fan. The rods come in a painted or plated finish.
In contrast to HQ H027929 and HQ 964899, the downrod does not complete the fan. It is not necessary to the functioning of the ceiling fan. It is not a part of the fan mechanism. Therefore, the ceiling downrod is not a part of a fan and would not be classified in heading 8414, HTSUS. It is substantially similar to the downrod classified in NY N073243. A ceiling fan can be flush mounted or mounted to the ceiling on a downrod. Threading and the drilling of holes in a tube would not place the article outside of heading 7306. The downrod is a tube made of iron or steel and is classified in heading 7306, HTSUS. In accordance with GRI's 1 and 6, the downrod is classified in subheading 7306.30.50, HTSUS.
HOLDING:
By application of GRIs 1 and 6, the ceiling fan downrods are classified in subheading 7306.30.50, HTSUS. The 2019 column one, general duty rate is Free.
On March 8, 2018, Presidential proclamations 9704 and 9705 imposed additional tariffs and quotas on a number of steel and aluminum mill products. Exemptions have been made on a temporary basis for some countries. Quantitative limitations or quotas may apply for certain exempted countries and can also be found in Chapter 99. Additional duties for steel of 25 percent and for aluminum of 10 percent are reflected in Chapter 99, subheading 9903.80.01 for steel and subheading 9903.85.01 for aluminum. Products classified under subheading 7306.30.50, HTSUS, may be subject to additional duties or quota. At the time of importation, Protestant must report the Chapter 99 subheading applicable to your product classification in addition to the Chapter 72, 73 or 76 subheading listed above. The Proclamations are subject to periodic amendment of the exclusions, so Protestant should exercise reasonable care in monitoring the status of goods covered by the Proclamations and the applicable Chapter 99 subheadings. You are instructed to DENY the protest. In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the Protestant no later than 60 days from the date of this letter. Any re-liquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision. Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings will make the decision available to CBP personnel, and to the public on the Customs Rulings Online Search System (“CROSS”) at https://rulings.cbp.gov/ which can be found on the U.S. Customs and Border Protection website at http://www.cbp.gov and other methods of public distribution. Sincerely,
for
Craig T. Clark, Director Commercial and Trade Facilitation Division