CLA-2 OT:RR:NC:N1:102
Joel A. Rios
Cross Border Logistics
4403 West Miliary Hwy, Suite 100
McAllen, Texas 78503
RE: The classification of a compressor subassembly from China.
Mr. Rios:
In your letter dated April 12, 2022, on behalf of Standard Motor Products, Inc. dba Four Seasons Division, you requested a ruling on the classification of a compressor subassembly.
The merchandise under consideration is referred to as a ¾ compressor subassembly. The compressor subassembly consists of an inlet, an outlet, pistons, and an outer housing that features specifically placed mountings that allow the subassembly to be bolted to the engine of a motor vehicle. Once installed and connected to a clutch and refrigerant hoses, the subassembly compresses refrigerant using the reciprocating motion of the pistons.
In your letter, you suggest that the compressor subassembly is classified within subheading 8415.90.8045, Harmonized Tariff Schedule of the United (HTSUS), which provides for Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated; parts thereof: Parts; Other; Other; Of automotive air conditioners. Your reasoning is that the subassembly is used in an air conditioning system of a motor vehicle and furthermore, it is imported without the clutch, which transfers power to the compressor. In regard to the assertion that subassembly is imported without the clutch, we find that the clutch is not an integral, constituent part of the compressor subassembly. As described, the subassembly is a complete compressor.
In addressing the premise of whether the subassembly is classified as a part of an air conditioning (AC) unit because it is used in an AC system, we turn to the Harmonized Commodity Description and Coding System Explanatory Notes ("ENs"), which constitute as the official interpretation of the Harmonized System at the international level. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings.
The Parts ENs to Heading 8415, in relevance, explain that parts for air-conditioning machines, whether or not designed for building into a self-contained unit, are to be classified in accordance with the provisions of Note 2(a) to Section XVI (heading 8414, 8418, 8419, 8421, 8479, etc.).
Note 2 to Section XVI states that subject to certain exclusions found in Note 1 to Section XVI, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: (a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective heading;
Heading 8414 specifically provides for Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; gas-tight biological safety cabinets, whether or not fitted with filters; parts thereof. Moreover, the General ENs to Heading 8414 explain that compressors, air pumps, fan, blowers, etc., specially constructed for use with other machines remain classified in this heading and not as parts of such other machines. Therefore, while the compressor is used in an air conditioning system, it is excluded from heading 8415 and instead, classified within heading 8414.
In accordance with Note 2(a) to Section XVI, the applicable subheading for the ¾ compressor subassembly will be 8414.30.8030, HTSUS, which provides for Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; gas-tight biological safety cabinets, whether or not fitted with filters; parts thereof; Compressors of a kind used in refrigerating equipment (including air conditioning); Other; Other; For all refrigerants except ammonia, For motor vehicles. The rate of duty is Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8414.30.8030, HTSUS, unless specifically excluded, are subject to an 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 8414.30.8030, 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. Part 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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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