United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1993 HQ Rulings > HQ 0952716 - HQ 0952810 > HQ 0952792

Previous Ruling Next Ruling


HQ 952792


March 5, 1993

CLA-2 CO:R:C:M 952792 LTO

CATEGORY: CLASSIFICATION

TARIFF NO.: 8414.80.20; 8421.29.00

Mr. B. Major
Major Diversities Inc.
5601 Gray Street
Arvada, Colorado 80002

RE: Refrigerant Recovery Systems; filtering machinery; compressors; Section XVI, Note 3; EN 84.21

Dear Mr. Major:

This is in response to your letter of October 6, 1992, requesting the classification of refrigerant recovery systems under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The articles in question are several models (1/2 HPCA, 1/2 HPC, 1000CAB, D1/2 HPC, D1000CA, D1000CB, D1000CAB, 2000C and D3000C) of refrigerant recovery systems. They are used to recover and/or recycle refrigerants from refrigerating and air conditioning machines. The units that perform only the recovery function are generally used to draw out the refrigerant when repairing a machine. The refrigerant is put back into the machine after it has been repaired. Those units that also perform the recycling function are necessary when the refrigerant will be stored or used elsewhere, rather than being placed back into the same machine.

Models D1000CB, 2000C and D3000C draw the refrigerant out of the machines, remove entrapped oil and then deliver the refrigerant to external storage cylinders. Other equipment must be used to perform any further cleansing of the contaminants. Recovery is effected by a compressor, which is the main constituent of these models. In addition to the compressor, each unit includes a heat exchanger which causes the refrigerant to - 2 -
vaporize, leaving behind entrapped oils that have a higher boiling point.

Models 1/2 HPCA and 1/2 HPC (which are the same except that the first is specially designed for recovery of refrigerant from automobiles), and Model D1/2 HPC are single machines that recover and recycle refrigerant at the same time. The recycling involves the removal of remaining impurities, such as acids and other particulates. Their removal is effected by filters within the units.

Models 1000CAB and D1000CAB are combinations of recovery and recycle units. In these models, the recovery unit can be used by itself, but because it takes its power from the recovery unit, the recycle unit cannot. The recycle unit has a 9-prong plug that fits the recovery unit's socket.

Model D1000CA performs only the recycling function. It can be used with the D1000CB.

ISSUE:

Whether the refrigerant recovery systems are classifiable as compressors under heading 8414, HTSUS, or as filtering machinery under heading 8421, HTSUS.

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states in pertinent part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ."

The articles in question can be broken down into the following groups: (1) recovery units--Models D1000CB, 2000C and D3000C; (2) recycling unit--Model D1000CA; (3) single units that recover and recycle--Models 1/2 HPCA, 1/2 HPC and D1/2 HPC; and (4) combinations of recovery and recycling units--Models 1000CAB and D1000 CAB.

The Group 1 units draw refrigerant out of machines, and at the same time remove entrapped oil. They then deliver the refrigerant to external storage cylinders. Refrigerant recovery is effected by a compressor. A heat exchanger causes the refrigerant to vaporize, leaving behind entrapped oils (but not other impurities). Any further cleansing of contaminants must be accomplished by other equipment.

Note 3 to Section XVI states that "machines adapted for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or being that machine which performs the principal function." The principal function of the Group 1 units is the recovery of refrigerant. The component which performs this function is the compressor.

Heading 8414, HTSUS, provides for air or vacuum pumps, air or other gas compressors. Specifically, the Group 1 units are classifiable under subheading 8414.80.20, HTSUS, which provides for other gas compressors.

The Group 2 unit performs only a recycling function. Heading 8421, HTSUS, provides for filtering or purifying machinery and apparatus for liquids or gases.

The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the Customs Co-operation Council's official interpretation of the Harmonized System. While not legally binding, the ENs provide a commentary on the scope of each heading of the Harmonized System, and are generally indicative of the proper interpretation of these headings. EN 84.21, pg. 1181, states that this heading covers "filters and purifiers of all types (physical or mechanical, chemical, magnetic, electro-magnetic, electrostatic, etc.)." The Group 2 unit is classifiable under subheading 8421.29.00, HTSUS, which provides for other liquid filtering or purifying machinery and apparatus.

The Group 3 units are single machines which perform both the recovery and the recycling function at the same time. The Group 4 units are combinations of one recovery unit and one recycling unit. The units are fitted together by means of a 9-prong plug found on the recycling unit that fits into a socket found on the recovery unit.

According to Note 3 to Section XVI, the Group 3 units must be classified as if consisting only of that component which performs the units' principal function. As for the Group 4 units, the Explanatory Note to Note 3 to Section XVI, pg. 1133, states that "[c]omposite machines consisting of two or more machines or appliances of different kinds, fitted together to form a whole, consecutively or simultaneously performing separate functions which are generally complementary and are described in different headings of Section XVI, are also classified according to the principal function of the composite machine [underlining added]."

The units that perform only the recovery function are used to draw out the refrigerant when repairing a machine. The refrigerant is put back into the machine after it has been repaired. Those units that also perform the recycling function are necessary when the refrigerant will be stored or used elsewhere, rather than being placed back into the same machine. The purpose of the units that perform the recycling function is to cleanse the refrigerant of contaminants so that it is suitable for reuse.

It is our opinion that the recycling function is the principal function of the Group 3 and the Group 4 units. Thus, these units are classifiable as filtering machinery under subheading 8421.29.00, HTSUS.

HOLDING:

The recovery units (Models D1000CB, 2000C and D3000C) are classifiable under subheading 8414.80.20, HTSUS, which provides for "[a]ir or vacuum pumps, air or other gas compressors and fans . . . [o]ther, except parts . . . [o]ther compressors." The corresponding rate of duty for articles of this subheading is 3.4% ad valorem.

The recycling unit (Model D1000CA), the single units that recover and recycle (Models 1/2 HPCA, 1/2 HPC and D1/2 HPC) and the combinations of recovery and recycling units (Models 1000CAB and D1000CAB) are classifiable under subheading 8421.29.00, HTSUS, which provides for "filtering or purifying machinery and apparatus, for liquids or gases . . . [f]iltering or purifying machinery and apparatus for liquids . . . [o]ther." The corresponding rate of duty for articles of this subheading is 3.9% ad valorem.

Sincerely,

John Durant, Director

Previous Ruling Next Ruling

See also: