CLA-2-84:OT:RR:NC:N1:102
Ms. Nichol Bradley
FLUOR Corporation
6700 Las Colinas Blvd
Irving, TX 75039
RE: The tariff classification of a distillation refining module
Dear Ms. Bradley:
In your letter dated August 30, 2018 you requested a tariff classification ruling. Technical information was submitted with your request.
The Distillation Refining Module, module 1101JB, interfaces with various other modules and consists of interconnected components that include reboilers, condensers, pumps, drums and interconnecting pipes. It is noted that the distillation module does not include the distillation columns and does not complete a distillation process. The function of the multi-tiered module is to complete a transfer of heat process that vaporizes liquid and a cooling process that liquefies gas.
The reboilers are configured as shell and tube heat exchangers that use steam or gas to vaporize liquid. The vapor is then returned to the boilers and liquid drawn from the boilers is collected by a drum and subsequently pumped to another module.
The condensers, which are also said to be configured as a shell and tube heat exchangers, cool vapor and liquefy gas. The condensed liquid produced by the condensers is sent to a drum and later pumped to another module.
The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation ("GRIs"). General Rule of Interpretation 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relevant section or chapter notes and, unless otherwise required, according to the remaining GRIs taken in order.
In your letter, you suggest that the heat exchangers impart the essential character of the module and therefore, the Distillation Refining Module should be classified in subheading 8419.50.5000, HTSUS, which provides for Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters...heat exchange units: other. While we agree with the suggested heading, we differ at the subheading level.
Note 4 to Section XVI states that where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function.
Based on the information presented, the clearly defined function of the Distillation Refining Module is the transfer of heat that vaporizes liquid and a cooling process that liquefies gas. This functionality, which is completed by the reboilers and condensers, is beyond the scope of the suggested subheading.
Therefore, in accordance with GRI 1 and Note 4 to Section XVI, the applicable subheading for the Distillation Refining Module, module 1101JB, will be subheading 8419.89.9585, HTSUS, which provides for Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating…vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; Other machinery, plant or equipment: Other: Other: Other: For other materials. The general rate of duty 4.2 percent ad valorem.
In your submission, you request a ruling for country of origin. Additional information is needed. Such information includes providing the country or origin for each component and providing a detailed explanation of the manufacturing processes that occur in the various countries mentioned.
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 on the World Wide Web at https://hts.usitc.gov/current.
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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division