CLA-2-84:OT:RR:NC:N1:104
Ms. Jane L. Taeger
Danfoss LLC
Glboal Services-Logistics/NAM
11655 Crossroads Circle
Baltimore, MD 21220-2863
RE: The tariff classification of Energy Recovery Devices from Denmark
Dear Ms. Taeger:
In your letter dated April 8, 2016, you requested a tariff classification ruling.
The iSave 21 – 40 Energy Recovery Devices (“ERD”) are said to be used exclusively in seawater reverse osmosis desalinization plants. The ERD’s function is to reduce the high energy costs associated with this process. Once desalinization is complete, the remaining reject brine water is eliminated as waste. The isobaric pressure exchanger in the ERD recovers the high pressusre energy in the brine and transfers it to the feed seawater. Once the pressure is transferred, the brine is expelled at low pressure to drain away. The iSave consists of an isobaric pressure exchanger, a high-pressure positive displacement booster pump and an electric motor. The pressure exchanger features a rotor in the middle with a port plate at each end. The port plates control the direction of the brine and seawater flows in the pressure exchanger. You state that the vane pump and pressure exchanger are always imported together as a single assembled unit and are never shipped or sold as separate units. The motor is added in the United States subsequent to importation as the motors are interchangeable based on the customer’s specifications.
You have requested a ruling as to the tariff classification of the iSave 21 – 40 Energy Recovery Devices under the following two scenarios: (A) the vane pump and the pressure exchanger imported together without the motor
and
(B) in cases where a complete ERD has been exported and is now being returned, an importation of a complete ERD consisting of a vane pump, a pressure exchanger and a motor. The motor would not be assembled to the balance of the ERD due to risk of damage.
General Rule of Interpretation 2(a) (“GRI 2(a)”), Harmonized Tariff Schedule of the United States (HTSUS), extends the scope of a heading to include an article, whether assembled or unassembled, that is imported incomplete or unfinished provided the article is found to have the essential character of the complete or unfinished good. Under GRI 2(a), the factor or factors which determine essential character will vary with the merchandise. It may, for example, be determined by the nature of a component or components, their bulk, quantity, weight or value, or the role of a component or components in relation to the use of the good. In this instance, this office finds that the ERD described in scenario A, i.e., without the motor, does have the essential character of a complete ERD.
The applicable subheading for the iSave 21 – 40 Energy Recovery Devices, imported with or without motors, will be 8479.89.6500, Harmonized Tariff Schedule of the United States (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: Other: Electromechanical appliances with self-contained electric motor: Other. The rate of duty will be 2.8 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 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 Patricia O’Donnell at [email protected].
Sincerely,
Deborah C. Marinucci
Acting Director
National Commodity Specialist Division