CLA-2-84:OT:RR:NC:N1:106
Mr. Satinder Bains
KPMG LLP
777 Dunsmuir Street
Vancouver, V7Y 1K3 British Columbia, Canada
RE: The tariff classification of gas generators from Canada
Dear Mr. Bains,
In your letter received by this office on April 07, 2014, you requested a tariff classification ruling on behalf of TransCanada Turbines of Airdrie, Alberta, Canada.
The item under consideration has been identified as a gas turbine unit that has adapted turbojets. You state in your request that TransCanada Turbines (TCT) would be importing only a portion of the unit, the gas generator, which is similar in design and configuration to the turbojet. You also note that the gas generator would not be attached to the power turbine for use in industrial applications.
You suggested that based on General Rules of Interpretation (GRI) 2(a) the gas generator be classified under 8411.12.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Turbojets, turbopropellers, and other gas turbines and parts thereof: Turbojets: Of a thrust exceeding 25kN; Other.”
Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the GRIs. GRI 2(a) states “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.”
The Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System, which represent the official interpretation of the tariff at the international level, facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs.
In part, ENs to heading 84.11(C) state that:
“This group includes industrial gas-turbine units which are either specifically designed for industrial use or adapt turbo-jets or turbo-propeller units for uses other than providing motive power for aircraft.”
In your submission you state that the gas generator would be used on a gas turbine unit that has adapted a turbojet for uses other than providing motive power to aircraft. You argue that only the gas generator component that is similar to design and configuration to turbojets would be imported. Based on GRI 2(a), the component that represents the essential character of an unfinished good is to be classified under the same subheading as the finished article. Since the gas turbine unit has been established to be properly classifiable under the HTSUS subheading 8411.82 per headquarter rulings HQ 967102 and HQ W968276, the gas generator of this unit may not be classified elsewhere in the tariff.
In addition, according to the literature you provided and independent internet research, the gas generator under review does not provide any motive power, either to aircraft or “other.” It is used in industrial applications. ENs 84.11 (A) Turbo-Jets explain that this group must provide motive power whether by reaction of a high velocity gas stream on the engine, or by using a “bypass fan jet.”
The applicable classification for the TCT gas generator will be 8411.82.8000, HTSUS, which provides for “Turbojets, turbopropellers, and other gas turbines and parts thereof: Other gas turbine; Other.”
Duty rates are provided for your convenience and are subject to change. The text of the most recent Harmonized Tariff Schedule of the United States and the accompanying duty rates are provided on the 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 this ruling, please contact National Import Specialist Liana Alvarez at [email protected].
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division