CLA-2 OT:RR:CTF:TCM W967677 JER
Paul F. Heiss
IBCC Industries, Inc.
3200 South 3rd Street
Milwaukee, WI 53207
RE: Revocation of NY E80816; 8412.29.00, HTSUS; suction diffuser bodies
Dear Mr. Heiss:
On April 19, 1999, U.S. Customs and Border Protection (“CBP”) issued New York Ruling Letter (“NY”) E80816 to IBCC Industries, Inc., classifying a suction diffuser body in subheading 7326.90.8585 of the Harmonized Tariff Schedule of the United States (“HTSUS”), as other articles of steel or iron. After reviewing NY E80816, we have found that ruling to be in error.
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. §1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed revocation was published on February 19, 2009, in the Customs Bulletin, Volume 43, No. 9. One comment was received in response to this notice.
FACTS:
NY E80816 described the subject merchandise in the following manner:
The suction diffuser bodies and covers are made from ASTM A48 Class 30 steel. These bodies and covers are assembled with domestic parts and sold as complete units in sizes ranging from 1-1/2" x 2" through 10" x 12". Suction diffusers are used in building fluid services to minimize turbulent flow at the inlet of a pump. In addition, the suction diffuser incorporates a strainer to remove large particulates from the fluid in order to protect the pump from possible damage. A sample was submitted.
ISSUE:
Whether the subject merchandise is classifiable under heading 8421, HTSUS as a filtering apparatus or under heading 7326, HTSUS, as an article of iron or steel.
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall 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 may then be applied in order.
The HTSUS provisions under consideration are as follows:
7326 Other articles of iron or steel:
7326.90 Other:
Other:
Other:
7326.90.85 Other……..
8421 Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof:
Filtering or purifying machinery and apparatus for liquids:
8421.29.00 Other………
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System. While not legally binding or 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).
EN 84.21 provides in pertinent part that:
This heading covers:
(I) Machines which, by the use of centrifugal force, completely or partly separate substances according to their different specific gravities, or which remove the moisture from wet substances.
(II) Filtering or purifying machinery and apparatus for liquids or gases, other than, e.g., filter funnels, milk strainers, strainers for filtering paints (generally Chapter 73).
(II) FILTERING OR PURIFYING MACHINERY AND APPARATUS, FOR LIQUIDS OR GASES
Much of the filtration or purification plant of this heading is purely static equipment with no moving parts. The heading covers filters and purifiers of all types (physical or mechanical, chemical, magnetic, electro magnetic, electrostatic, etc.). The heading covers not only large industrial plant, but also filters for internal combustion engines and small domestic appliances. The heading does not, however, include filter funnels, milk strainers, vessels, tanks, etc., simply equipped with metallic gauze or other straining material, nor general purpose vessels, tanks, etc., even if intended for use as filters after insertion of a layer of gravel, sand, charcoal, etc.
In general, filtering machinery and plant of this heading is of two distinct types according to whether it is intended for liquids or gases.
* * *
(4) Filters for boiler water. These usually consist of a large vessel fitted internally with several superimposed layers of filtering materials and, in addition to the inlet and outlet tubes, a system of pipes and valves for cleaning the filtering elements by a cross current of water.
* * *
(B) Filtering or purifying machinery, etc., for gases
These gas filters and purifiers are used to separate solid or liquid particles from gases, either to recover products of value (e.g., coal dust, metallic particles, etc., recovered from furnace flue gases), or to eliminate harmful materials (e.g., dust extraction, removal of tar, etc., from gases or smoke fumes, removal of oil from steam engine vapours).
NY E80816 classified the merchandise at issue under subheading 7326.90.8585, of the 1999 HTSUSA, which provided for “[o]ther articles of steel or iron: Other: Other.” However, we have found this decision to be inconsistent with other rulings classifying substantially similar merchandise. Specifically, Headquarters Ruling Letter (“HQ”) 964174, dated July 10, 2000, classified “Y” Strainers used to filter or trap contaminants in water or steam lines under heading 8421, HTSUS. This ruling also revoked a previously issued ruling which classified “Y” Strainers in heading 7326, HTSUS. In HQ 964174, CBP found that heading 8421, HTSUS, provided a more specific description of the merchandise than did heading 7326, HTSUS. See also, HQ 963308 dated July 10, 2000 (which revoked a previously issued ruling that classified “Y” Strainers under heading 7325, HTSUS).
Our research indicates that the subject suction diffuser bodies (hereinafter “suction diffusers”) and “Y” Strainers are substantially similar in physical structure, use and function. Generally, suction diffusers function as a strainer, flow straightener, elbow and pipe reducer. Strainer, Suction Diffuser, at http://www.grainger.com; see also FSI Suction Diffusers, at http://www.suctiondiffuser.com. Also, the filtration capacity of the suction diffuser is designed to increase or ensure pump protection against harmful debris in fluids which flow throughout the pipe system. Id. Likewise, “Y” Strainers have a strainer orifice designed to increase filtration capacity in pipe systems. Typically, both the suction diffusers and “Y” strainers have an iron body and stainless steel screens and are used in industrial or commercial systems to strain out debris (and provide pump protection in the case of suction diffusers). Both are used in high pressure water and steam systems and through the use of screens, mesh liners and covers, are able to filter and trap contaminants. Id. We find that these filtration functions are covered in heading 8421, HTSUS.
Note 1(f) to Section XV, HTSUS, states in pertinent part that “[t]his section does not cover: Articles of section XVI (machinery, mechanical appliances and electrical goods).” Filtering and purifying apparatus for liquids or gases are articles of Section XVI, HTSUS, and are therefore excluded from classification in heading 7326, HTSUS, which is a heading of Section XV, HTSUS.
Similarly, the ENs to heading 7326, HTSUS, explain that, “[t]his heading covers all iron or steel articles obtained by forging or punching, by cutting or stamping or by other processes such as folding, assembling, welding, turning, milling or perforating other than articles included in the preceding headings of this Chapter or covered by Note 1 to Section XV or included in Chapter 82 or 83 or more specifically covered elsewhere in the Nomenclature.”
By contrast, heading 8421, HTSUS, covers filtering or purifying machinery and apparatus for liquids and for gases. The ENs to heading 8421, HTSUS, explain that the heading covers filters and purifiers of all types, including filters for boiler water consisting of a system of inlet and outlet tubes, pipes and valves for cleaning the filtering elements by a cross-current water.
The comment received in response to the February 9, 2009, suggests that the subject merchandise should be classified as a “part” of pump under subheading 8413.91, HTSUS. The commenter argues that since the suction diffusers have additional functions beyond the primary filtering function (i.e., acting as a pipe reducer, elbow and flow strainer), and because these functions may be used with pumps, the suction diffusers are thus classifiable as a “part” of a pump. We disagree. While we do not find this article to be a “part” of a pump, we note that the classification of “parts” of headings of Chapter 84 are subject to Note 2 (b) to Section XVI which states that “[p]arts which are goods included in any of the headings of Chapter 84 or 85 are in all cases to be classified in their own respective headings.” Accordingly, even if the subject merchandise were considered to be a “part” of a pump, because it is also classifiable as a “good” of Chapter 84, it must be classified in its own heading pursuant to Note 2 (b) to Section XVI. Nidec Corporation v. United States, 861 F. Supp. 136, 142, 18 Ct. Int’l Trade 821, aff'd 68 F. 3d 1333 (Fed. Cir. 1995),
Based on all the foregoing, we find that the subject suction diffuser body was incorrectly classified under heading 7326, HTSUS, and is provided for in heading 8421, HTSUS.
HOLDING:
By application of GRI 1 and Note 1 (f) to Section XV, HTSUS, the subject suction diffuser body is classified in heading 8421, HTSUS. Specifically, the merchandise is provided for in subheading 8421.29.00, HTSUS, which provides for: “Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Filtering or purifying machinery and apparatus for liquids: Other.” The column one, general rate of duty is Free.
EFFECT ON OTHER RULINGS:
NY E80816, dated April 19, 1999, is hereby revoked. In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division