CLA-2-84:OT:RR:NC:N1:105

Tashi McClain
Nissan North America
One Nissan Way
Franklin, Tennessee 37067

RE: The tariff classification of an oil filter cartridge from Japan.

Dear Mr. McClain:

In your letter dated January 20, 2022, you requested a tariff classification ruling.

The item under consideration is described as an oil filter cartridge (part number 15208AD21A), which is the filtering element present inside an engine oil filter used to filter the dust particles, debris and other contaminants found in the engine oil. The cartridge is made of plastic end plates used to mount the inner tube and filter element, the paper filter element that absorbs the contaminants in the oil during the filtering process, the plastic inner tube that has holes on its surface and allows the oil passage directly from the filter back to the engine, and plastic strips used to tie the filter element with the inner tube. The filter cartridge is combined with a separately provided housing in order to complete the oil filter. The filter housing is the casing for the fuel filter element which temporarily stores the oil and pushes the oil towards the corrugated filter paper.

In operation, the oil pump starts pumping the engine oil from the oil pan. The oil first goes to the oil filter where all the debris is removed and then enters into the engine. The oil pump is connected with the inlet of the oil filter wherein the outlet of oil filter will be connected to the engine for lubrication to reduce the friction of engine parts.

In your submission you suggest the classification of the oil filter cartridge to be 8421.99.0080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Parts: Other: Other.” You reference Note 2(b) to Section XVI stating the filter cartridge is a part and is solely or principally used with the oil filter. The term “part” is not defined in the HTSUS. In the absence of a statutory definition, the courts have fashioned two distinct but reconcilable tests for determining whether a particular item qualifies as a part for tariff classification purposes. See Bauerhin Technologies Limited Partnership, & John V. Carr & Son, Inc. v. United States, 110 F.3d 774 (Fed. Cir. 1997). Under the first test, articulated in United States v. Willoughby Camera Stores, 21 C.C.P.A. 322 (1933), an imported item qualifies as a part only if can be described as an “integral, constituent, or component part, without which the article to which it is to be joined, could not function as such article.” Bauerhin, 110 F.3d at 779. Pursuant to the second test, set forth in United States v. Pompeo, 43 C.C.P.A. 9 (1955), a good is a “part” if it is “dedicated solely for use” with a particular article and, “when applied to that use…meets the Willoughby test.” Bauerhin, 110 F.3d at 779 (citing Pompeo, 43 C.C.P.A. at 14); Ludvig Svensson, Inc. v. United States, 63 F. Supp. 2d 1171, 1178 (Ct. Int'l Trade 1999) (holding that a purported part must satisfy both the Willoughby and Pompeo tests). An item is not a part if it is “a separate and distinct commercial entity.” Bauerhin, 110 F.3d at.779. In our opinion, the oil filter cartridge is not a part of the oil filter as it is the material component that provides the actual filtering.

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 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. GRI 2(a) provides, in relevant part, that “[a]ny 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 articles has the essential character of the complete or finished article.” It is our opinion that the filter cartridge, as imported, has all of the characteristics needed when imported into the United States to act as a filter. The paper filter performs the filtering function in its imported state and does not require any changes to its imported condition. Furthermore, the filter has the size and shape of the finished filter. Upon importation, the filter cartridge can be used for no other purpose than to act as an oil filter. Based on these attributes, the oil filter cartridge has the essential character of a complete oil filter.

Consequently, according to GRI 2(a), the applicable subheading for the oil filter cartridge (part number 15208AD21A) will be 8421.23.0000, Harmonized Tariff Schedule of the United States (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: Oil or fuel filters for internal combustion engines.” The rate of duty will be 2.5 percent ad valorem.

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 Jason Christie at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division