CLA-2-73:OT:RR:NC:N1:113
Mr. Michael Cantlay
Twa Panel System, Inc.
1201 – 4th Street
Nisku, AB, Canada
T9E 7L3
RE: The tariff classification of Modular Active Chilled Beams
Dear Mr. Cantlay:
In your letter dated December 16, 2009, you requested a tariff classification ruling. Descriptive literature for the Twa Modular Active Chilled Beams was submitted with your ruling request for our review. You indicate in your letter that a request for a North American Free Trade Agreement (NAFTA) ruling on regional value content for Modular Active Chilled Beams model MACB222 and model MACB288 was submitted to the Commissioner, Customs & Border Protection, on December 16, 2009.
The subject product identified as a Modular Active Chilled Beam Unit (MAC Beam) is also known as an induction diffuser. The MAC Beam Unit consists of a galvanized steel beam module (casement), a galvanized steel pressurization plenum box, a hinged access door with integral perforations, formed induction nozzles, discharge air slots, a heat exchanger coil (copper tubing with aluminum fins) for chilled and/or hot water, a flange for duct connection and adjustable mounting brackets.
The MAC Beam Unit is designed to provide cooling, ventilation and/or heating in commercial buildings. The unit is used to deliver a supply of outside air to cool or heat the room air, and to pressurize the beam plenum. The outside air then passes through an array of formed nozzles along the length of the beam. The jets of air discharging from the nozzles causes the room air to be drawn through the unit mounted coil via induction. The mixture of the outside air and the induced air enters the room through the discharge slots on each side of the beam. You indicate in your letter that approximately 65-75 percent of the cooling effect is provided by the chilled water coil. The difference between the room air temperature and the chilled water temperature determines the MAC Beam Unit’s ability to absorb heat. The cooler the room, the less heat can be absorbed by the coil. Therefore, the beam’s capacity is self-regulating. The unit has no moving parts and requires no electrical connections.
Twa MAC Beams are available in sizes that measure 2’ by 2’, 2’ by 4’, 2’ by 5’, 2’ by 6’, and 2’
by 8’. The beam designed to fit within a standard 2’ wide T-bar ceiling grid can also be installed within a finished drywall ceiling.
The MAC Beam Unit consists of 85 percent galvanized steel and 15 percent copper tubing. As stated in Section XV, Note 7, "Except where the headings otherwise require, articles of base metal (including articles of mixed materials treated as articles of base metal under the General Rules of Interpretation) containing two or more base metals are to be treated as articles of the base metal predominating by weight over each of the other metals." When classifying an article made of two or more different metals, there is no determination of essential character. Principal weight is the sole determining factor. As indicated in your letter, the base metal predominating by weight over each of the other metals in the MAC Beam Unit is steel. Therefore, the subject articles will be classified as articles of steel in heading 7326, Harmonized Tariff Schedule of the United States (HTSUS).
The applicable subheading for the Modular Active Chilled Beams will be 7326.90.8588, HTSUS, which provides for other articles of iron or steel, other, other, other, other, other. The rate of duty will be 2.9 percent ad valorem.
Duty rates are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Ann Taub at 646-733-3018.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division