CLA-2-84:OT:RR:NC:N1:102

Mr. Glenn Carberry
Praxair Inc.
175 East Park Drive
Tonawanda, NY 14150

RE: The tariff classification of heat exchange process modules from China

Dear Mr. Carberry:

In your letter dated November 20, 2018 you requested a tariff classification ruling. Descriptive literature was submitted.

Process Module Systems 1, 2 and 3 are multi-tiered structures that lower the temperature of synthesis gas. The process module systems are installed at a carbon monoxide and hydrogen production facility and primarily consist of heat exchange submodules that allow for heat to be transferred between hot and cold fluids. The heat exchange submodules are said to be constructed of non-aluminum material and are configured as either a shell and tube heat exchanger, a kettle type heat exchanger or a plate and frame heat exchanger.

The applicable subheading for Process Module Systems 1, 2 and 3, will be 8419.50.5000, Harmonized Tariff Schedule of the United States, (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;...Heat exchange units; Other. The rate of duty is Free.

Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS.  The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS.  Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974).  Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.

Products of China classified under subheading 8419.50.5000, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8419.50.5000, HTSUS, listed above.

The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.

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