CLA-2-73:OT:RR:NC:N5:121

Lisa Murrin
Expeditors Tradewin LLC
795 Jubilee Drive
Peabody, MA 01960

RE: The tariff classification of components of a heat exchanger sub-assembly from Canada

Dear Ms. Murrin:

In your letter dated July 29, 2025, you requested a tariff classification ruling on behalf of Samuel, Son & Company.

The merchandise under consideration is described as a Heat Exchanger Sub-assembly, Model # 336770-707. Each sub-assembly consists of 1 containment plate, 1 liner tube sheet, 45 tubes, and 45 turbulators - all made of stainless steel. The components are shipped individually in bulk shipping containers in the required quantities of components needed to create the total number of sub-assemblies ordered. The components are not imported in retail packaging. The containment plate is used to secure the tubes within the heat exchanger. The liner tube sheet is a plate with a specific number of holes that serves to support and isolate the heat exchanger tubes. The turbulators are helically shaped rods that are inserted into the tubes, where they create turbulence of the circulating airflow. The stainless-steel tubes are cold-formed, welded, annealed, and cut-to-length. These tubes have a wall thickness of 0.305 mm, an inside diameter of 12.21 mm, and an outside diameter of 12.77 mm. You state that the tubes isolate the combustion air from the warmed residential household air which is where the exchange of heat occurs. You note that the completed secondary heat exchanger is a crucial component in a heating system. It is situated between a primary heat exchanger and a blower module in a gas-fired air furnace. The furnace heats air that is pushed by a blower module upwards and then into the ducting of a structure.

In your submission, you suggest that the containment plate, liner tube sheet, turbulators, and stainless-steel tubes are classified under subheading 8419.90.3000, Harmonized Tariff Schedule of the United States (HTSUS), as parts of a heat exchange unit. We disagree. Before we can classify the individual components, we must determine the classification of the article in which they are used. The items are components of a secondary heat exchanger in a gas-fired air furnace. While referred to as a “heat exchanger,” it is not a machine for treating materials, nor is it configured so that one fluid is cooled and another is heated. Rather, it needs to be combined with a primary heat exchanger and a blower module to complete its function, which is to act as a heating coil. Because the secondary heat exchanger is not configured as a heat exchanger of heading 8419, the aforementioned items are not classified as parts of a machine of heading 8419. As imported, the containment plate, liner tube sheet, turbulators are specifically provided for in heading 7322, HTSUS, and welded tubes are specifically provided for in heading 7306, HTSUS.

The applicable subheading for the stainless-steel containment plate, liner tube sheet, turbulators will be 7322.90.0045, HTSUS, which provides for Radiators for central heating, not electrically heated, and parts thereof, of iron or steel; air heaters and hot air distributors (including distributors which can also distribute fresh or conditioned air), not electrically heated, incorporating a motor-driven fan or blower, and parts thereof, or iron or steel: Other, Including parts… Parts of air heaters and hot air distributors. The general rate of duty will be Free.

The applicable subheading for the stainless-steel tubes will be 7306.40.1090, HTSUS, which provides for other tubes, pipes and hollow profiles (for example, open seamed or welded, riveted or similarly closed), of iron or steel: other, welded, of circular cross section, of stainless steel: having a wall thickness of less than 1.65 mm: other. The rate of duty will be free. tubes

On March 12, 2025, Presidential proclamations 10895 and 10896 imposed additional tariffs on products of steel and aluminum. Additional duties for steel and aluminum products of 50 percent are reflected in Chapter 99, heading 9903.81.87 for steel and heading 9903.85.02 for aluminum. Products classified under subheading 7306.40.1090, HTSUS, may be subject to additional duties. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e., 9903.81.87, in addition to the Chapter 72, 73, or 76 subheadings listed above.

On March 12, 2025, Presidential proclamation 10896 imposed additional tariffs on certain derivative iron or steel products. Additional duties for derivative iron or steel products of 50 percent are reflected in Chapter 99, headings 9903.81.89, 9903.81.90, and 9903.81.91. Products provided by heading 9903.81.91, as well as products of Chapter 73 provided by 9903.81.89 and 9903.81.90, will be subject to a duty of 50 percent upon the value of the steel content. At the time of entry, you must report the Chapter 99 heading applicable to your product classification, i.e. 9903.81.90, in addition to subheading 7322.90.0045, HTSUS. Derivative iron or steel products processed in another country from steel articles melted and poured in the United States, provided for in heading 9903.81.92, are not subject to the additional ad valorem duties.

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 35 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 subheading 7322.90.0045 or 7306.40.1090, 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 7322.90.0045 or 7306.40.1090, HTSUS.

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 of Canada are not subject to reciprocal tariffs. 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 7322.90.0045 or 7306.40.1090, 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 (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. 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 Jennifer Jameson at [email protected].
Sincerely,

(for)
James Forkan
Acting Director
National Commodity Specialist Division