CLA-2-76:OT:RR:NC:N1:164
Darren Alexander
Twa Panel Systems, Inc.
1201 - 4th Street
Nisku, Alberta T9E 7L3
Canada
RE: The tariff classification of hydronic radiant cooling and heating systems from Canada
Dear Mr. Alexander:
In your letter dated May 1, 2025, you requested a tariff classification ruling regarding hydronic radiant
cooling and heating systems from Canada. Technical information was submitted with your request.
The items under consideration are described as hydronic radiant cooling and heating systems that consist of
ceiling or wall-mounted panels that heat or cool indoor spaces by circulating chilled or heated water through
affixed tubing. The systems are integrated with and rely on a building’s central boiler, chiller, or heat pump
system. During operation, the systems receive water and circulate it through a network of copper pipes
affixed to aluminum or steel paneling. As the water circulates, heat is transferred to or from the panel surface.
In turn, this affects the surrounding ambient temperature.
Each panel primarily consists of formed aluminum or steel sheet which houses 5.8-inch outer diameter
serpentine copper tubing. An aluminum sheet metal configuration features either 14-gauge perforated
aluminum or 18-gauge unperforated aluminum. An alternative configuration is built with extruded aluminum
clinched, screwed, or welded together to form a panel profile to specifications. Configurations incorporating
steel sheet metal feature sheets of 14-gauge or 20-gauge thickness. All configurations feature panels backed
with 1 inch of fiberglass insulation to direct cooling or heating capacity as desired.
In your submission, you suggest that the subject panels are classifiable under subheading 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; instantaneous or
storage water heaters, nonelectric; parts thereof: Heat exchange units: Other. We disagree.
The subject panel is not a machine for treating materials, nor is it configured to transfer heat from one fluid to
another or from one substance to another. Instead, it is a convector element that is mounted on walls or
ceilings to provide radiant heating and cooling to indoor spaces. As such, the subject panels are precluded
from consideration in heading 8419, HTSUS.
Classification under the HTSUS in accordance with the General Rules of Interpretation (GRIs). GRI 1
provides that the classification of goods will be determined 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 headings and legal notes do not otherwise require, the remaining GRIs 2
through 6 will then be applied in order.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official
interpretation of the HTSUS. 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. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
As the hydronic cooling and heating systems are composite goods, we must apply GRI 3(b), which provides
that composite goods are to be classified according to the component that gives the goods their essential
character. EN VIII to GRI 3(b) explains that “the factor which determines essential character will vary as
between different kinds of goods. It may, for example, be determined by the nature of the material or
component, its bulk, quantity, weight or the use of the goods.” We must determine whether the metal
components (sheet metal panels, extrusions, and coils), the fiberglass, or other components impart the
essential character to the hydronic cooling and heating systems.
In this case, the totality of the metal components provides the structure for mounting, for securely holding
them together, and for facilitating the flow of chilled or heated water during operation. Furthermore, the
metal components provide the physical forms and surface areas that enable heating by infrared radiation and
cooling from radiant absorption. In addition, the metal components provide convective cooling and heating
effects. As a result, the metal components impart the essential character of the hydronic cooling and heating
systems.
Section XV Note 7, HTSUS, states that the classification of composite articles of base metal containing two
or more base metals are to be treated as articles of the base metal that predominates by weight over each of
the other metals. In this case, the hydronic cooling and heating systems are composed of more than one base
metal (aluminum, steel, copper). Based on the information provided, aluminum predominates by weight in
the aluminum panel models, and steel predominates by weight in the steel panel models. Consequently,
predominantly aluminum models are classifiable in heading 7616, HTSUS, and the predominantly steel
models are classifiable in heading 7322, HTSUS.
The applicable subheading for the predominantly aluminum hydronic cooling and heating systems will be
7616.99.5190, HTSUS, which provides for Other articles of aluminum: Other: Other: Other: Other: Other:
Other. The general rate of duty will be 2.5 percent ad valorem.
The applicable subheading for the predominantly steel hydronic cooling and heating systems will be
7322.19.0000, HTSUS, which provides for Radiators for central heating, not electrically heated, and parts
thereof, of iron or steel . . .: Radiators and parts thereof: Other. The general rate of duty will be Free.
Products of Canada as provided by heading 9903.01.10 in Section XXII, Chapter 99, Subchapter III, U.S.
Note 2(j), HTSUS, other than products classifiable under headings 9903.01.11, 9903.01.12, 9903.01.13,
9903.01.14, and 9903.01.15, HTSUS, will be subject to an additional 25 percent ad valorem rate of duty. At
the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.10, in addition to
subheadings 7616.99.5190 or 7322.19.0000, HTSUS, listed above. Articles that are entered free of duty
under the terms of general note 11 to the HTSUS (U.S.-Mexico-Canada Agreement (USMCA)), including
any treatment set forth in subchapter XXIII of Chapter 98 and subchapter XXII of chapter 99 of the HTSUS,
will not be subject to the additional ad valorem duties provided for in heading 9903.01.10. If your product is
entered duty free as originating under the USMCA, you must report heading 9903.01.14, HTSUS, in addition
to subheadings 7616.99.5190 or 7322.19.0000.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must
be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries
will be subject to an additional 10 percent ad valorem rate of duty. Your products fall within an excepted
subheading. At the time of entry, you must report the Chapter 99 heading applicable to your product
classification, i.e. 9903.01.26, in addition to subheadings 7616.99.5190 or 7322.19.0000, HTSUS, listed
above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 at https://hts.usitc.gov/.
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
(C.F.R.), 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 C.F.R. 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection
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, please contact
National Import Specialist Paul Taylor at [email protected].
Sincerely,
(for)
Steven A. Mack
Director
National Commodity Specialist Division