CLA-2-84:OT:RR:NC:N1:103
Nick Laviola
Bollore Logistics Inc.
125 Chubb Avenue
Lyndhurst, NJ 07071
RE: The tariff classification of process vessels from China
Dear Mr. Laviola:
In your letter dated June14, 2022, you requested a tariff classification ruling on behalf of your client, Koch Modular Process Systems, LLC.
The first item under consideration is the V-300 process vessel, a vertical vessel that is fitted with nozzles, an integrated steam jacket, and support lugs. A steam jacket is welded to the outside of the shell and used to indirectly heat the liquid inside the vessel. Steam is fed to the jacket inlet nozzle, where it transfers heat indirectly to the process liquid. The V-300 vessel is made from carbon steel and used during the treatment of polypropylene plastic. You describe the vessel as a part of a larger system to purify waste plastics, functioning as a component that performs a discrete unit of operation in a broader chemical process.
The second item under consideration is the V-700 process vessel, a horizontal vessel that is fitted with nozzles, an integrated steam jacket, and supported by saddles. A steam jacket is welded to the outside of the shell and used to indirectly heat the liquid inside the vessel. Steam is fed to the jacket inlet nozzle, where it transfers heat indirectly to the process liquid. The V-700 vessel is made from carbon steel and used during the treatment of polypropylene plastic. You describe the vessel as a part of a larger system to purify waste plastics, functioning as a component that performs a discrete unit of operation in a broader chemical process.
You suggest classifying both the V-300 and V-700 process vessels under subheading 8419.89.9580, Harmonized Tariff Schedule of the United States (“HTSUS”). We agree.
The third item under consideration is a Scheibel extraction column, model number C-200, designed for waste plastics. At the time of importation, the pressure vessel does not have any mechanical components and is empty with the exception of welded internal baffles. It does not have any heating elements but includes a steam jacket welded to the outside of the vessel, which provides indirect heating using steam that is fed to the jacket. After importation, a shaft mounted rotating impeller assembly and a motor are installed. Both the motor and assembly are sourced domestically and once assembled function as an agitator within the Scheibel column. The purpose of the Scheibel column is to mix an immiscible solvent stream and feed stream together such that the solvent may extract impurities from the feed stream.
In your request, you suggest the C-200 Scheibel extraction column is properly classified in subheading 8479.82.0040, HTSUS, which provides for “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Mixing, kneading, crushing, grinding, screening, sifting, homogenizing, emulsifying or stirring machines: Mixing, kneading or stirring machines.” This office disagrees and is of the view that the extraction column, in its imported condition, is more appropriately classified elsewhere in the tariff. As imported, the Scheibel extraction column does not have the ability to mix solvent and feed streams because it lacks the shaft mounted rotating impeller assembly and the motor. You explain that as imported, the column is merely a pressure vessel with internal fixed baffles and a steam jacket welded to the outside of the vessel. Thus, in its condition as imported, the column will be classified in its respective provision.
The applicable subheading for the V-300 process vessel, V-700 process vessel, and C-200 Scheibel extraction column will be 8419.89.9580, 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, nonelectric; parts thereof: Other machinery, plant or equipment: Other: Other: Other: Other: For rubber and plastics.” The rate of duty will be 4.2 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8419.89.9580, 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., 9903.88.02, in addition to subheading 8419.89.9580, HTSUS, listed above.
The HTSUS is subject to periodic amendment, so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
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 Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division