OT:RR:CTF:EMAIN H342749 DSR
Center Director
Machinery Center of Excellence and Expertise
U.S. Customs and Border Protection
109 Shiloh Dr., Suite 300
Laredo, TX 78045
ATTN: Michelle Petrie, Supervisory Import Specialist
RE: Application for Further Review of Protest No. 2801-24-102038; Application of Section
301 duties to filter membrane rolls and filter membrane flats from China; U.S. note
20(ttt)(i)(2), (28) to subchapter III of Chapter 99 (subheadings 9903.88.01, 9903.88.67,
HTSUS).
Dear Center Director:
This letter is our decision regarding the Application for Further Review (AFR) of Protest
No. 2801-24-102038 filed on behalf of Snyder Filtration (Protestant). The Protest and AFR
concern the classification under the Harmonized Tariff Schedule of the United States (HTSUS)
of certain filter membrane rolls and filter membrane flats from China, in addition to the
assessment of additional duties pursuant to Section 301(b) of The Trade Act of 1974, as amended
(“Section 301” duties). The AFR was forwarded to this office for consideration.
FACTS:
The subject articles were entered under subheading 8421.99.0140, HTSUS Annotated
(HTSUSA), which covers certain parts of machinery and apparatus for filtering or purifying
water. At the time of entry, Protestant claimed that the articles were excluded from the additional
duties imposed by subheading 9903.88.01, HTSUS, per the exclusion set forth in U.S. note
20(ttt)(i)(28) to subchapter III of Chapter 99 (subheading 9903.88.67, HTSUS). However, the
entries were subsequently assessed Section 301 duties when CBP determined that the exclusion
does not apply. Protestant now challenges that assessment.
The filter membrane rolls at issue are described as being made of “permeate tube,
membrane sheet, spacer, permeate carrier and outer sheet roll.” The filter membrane flats can be
described as flat versions of the membrane rolls and are similar in functionality. All of the filter
models contain an organic polymeric membrane material (polyamide, PES and PVDF) that is
only compatible with water-based filtration and thus can only be used as part of machinery or
apparatus for filtering water or water-based liquids. Protestant asserts that they are integral parts
of the filtration machinery in which they are installed.
ISSUE:
Are the subject articles excluded from the scope of subheading 9903.88.01, HTSUS, by
virtue of the application of U.S. Note 20 (ttt)(i)(28) to subchapter III of Chapter 99 (9903.88.67,
HTSUS)?
LAW AND ANALYSIS:
We first note that this matter is protestable under 19 U.S.C. §1514(a)(2) as a decision on
classification. Protestant entered the merchandise between December 15, 2022, and March 1,
2024, and the entries were liquidated on April 19, 2024. The protest was timely filed on October
10, 2024, which was within 180 days of liquidation of the entries. See Miscellaneous Trade and
Technical Corrections Act of 2004, Pub. L. 108-429, § 2103(2)(B)(ii), (iii) (codified as amended
at 19 U.S.C. § 1514(c)(3) (2006)). Further review of the protest is properly accorded to
Protestant pursuant to 19 C.F.R. § 174.24(b).
Merchandise imported into the United States is classified under the HTSUS. Tariff
classification is governed by the principles set forth in the General Rules of Interpretation
(“GRIs”) and, in the absence of special language or context which requires otherwise, by the
Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of
Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all
classification purposes.
GRI 1 requires that classification be determined first 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 heading and legal notes do not
otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
There is no dispute that the goods are classified in subheading 8421.99.01, HTSUS, as
parts of filtering or purifying machinery and apparatus, for liquids and gases. What is being
considered is whether the goods are subject to additional duties by application of subheading
9903.88.01, HTSUS, or excluded from such duties by application of the exclusion (subheading
9903.88.67, HTSUS)) presented in U.S. note 20(ttt)(i)(28) to subchapter III of Chapter 99,
HTSUS.
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U.S. note 20(ttt)(i)(28) reads as follows:
Filter housings, covers, or couplings, the foregoing of steel and comprising parts
of machinery or apparatus for filtering liquids (described in statistical reporting
number 8421.99.0040 prior to January 27, 2022; described in statistical reporting
number 8421.99.0140 effective January 27, 2022)
Protestant argues that the exclusion’s reference to “steel” only applies to the preceding
terms “filter housings, covers, or couplings,” and that the “and” after the phrase “the foregoing of
steel” is adding to that phrase to specify that other parts that are not made of steel are included
within the scope of the exclusion. In support, Protestant states that “If the intention of the phrase
was to make each element a requirement, then the word ‘and’ would be removed, reading ‘Filter
housings, covers, or couplings, the foregoing of steel, comprising parts of machinery or
apparatus for filtering liquids’” Further, Protestant argues that:
The inclusion of the word “and” shows an alternative, where the exclusion can also
include parts of machinery or apparatus for filtering liquids. Therefore, the
language of the exclusion shows that it includes steel filter housings or steel covers
or steel couplings or parts of machinery for filtering liquids or parts of apparatus
for filtering liquids.
That is a labored interpretation of the exclusion’s plain language. A straightforward
reading of the language indicates that the phrases “the foregoing of steel” and “comprising parts
of machinery or apparatus for filtering liquids” qualify and restrict the scope of the preceding
elements “filter housings, covers, or couplings.” Simply put, the exclusion indicates that
pertinent filter housings, covers or couplings must be made of steel and must also be parts of
machinery or apparatus for filtering liquids in order for the exclusion to apply, and the subject
articles are not made of steel. For those reasons, we conclude that the subject articles are
classified in subheading 8421.99.01, HTSUS, and remain subject to additional duties imposed by
subheading 9903.88.01, HTSUS.
HOLDING:
By application of GRI 1, the filter membrane rolls and filter membrane flats are classified
in heading 8421, HTSUS, specifically in subheading 8421.99.1040, HTSUS, which provides for
“Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for
liquids or gases; parts thereof: Filtering or purifying machinery and apparatus for liquids: Parts:
Other: Parts of machinery and apparatus for filtering or purifying water.” The general, column
one rate of duty is “Free.”
Also, pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China
classified under subheading 8421.99.01, HTSUS, unless specifically excluded, are subject to an
additional 25 percent ad valorem rate of duty imposed by subheading 9903.88.01, HTSUS.
Duty rates are provided for your convenience and are subject to change. The text of the
most recent HTSUS and the accompanying duty rates are provided at www.usitc.gov. The
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HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring
the status of goods covered by the Note cited above and the applicable Chapter 99 subheading.
You are instructed to DENY the Protest.
You are also instructed to notify the Protestant of this decision no later than 60 days from
the date of this decision. Any reliquidation of the entry or entries in accordance with the decision
must be accomplished prior to this notification. Sixty days from the date of the decision, the
Office of Trade, Regulations and Rulings will make the decision available to CBP personnel and
the public on the Customs Rulings Online Search System (CROSS) at https://rulings.cbp.gov/, or
other methods of public distribution.
Sincerely,
for Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division
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