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 > 1994 HQ Rulings > HQ 0955016 - HQ 0955095 > HQ 0955063

Previous Ruling Next Ruling


HQ 955063


January 27, 1994

CLA-2 CO:R:C:M 955063 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 7309.00.00

District Director of Customs
1000 Second Avenue
Suite 2200
Seattle, WA 98104

RE: Protest No. 3004-93-100061; Chloride Trap Reactor; Tanks, Vats and Similar Containers; Headings 7309, 8419, and 8421; EN 73.09

Dear District Director:

The following is our decision regarding the request for further review of Protest No. 3004-93-100061, which concerns the classification of Chloride Trap Reactors under the Harmonized Tariff Schedule of the United States (HTSUS). The entry of the subject merchandise was liquidated on April 9, 1993. The protest was timely filed on May 4, 1993.

FACTS:

The chloride trap reactors are pressure vessels made of carbon steel, which are used to remove chlorides from a stream of hydrogen gas. The chloride trap reactors are filled with a catalyst (not included) that absorbs the chlorides, inducing an endothermic reaction (or generates heat). The hydrogen flows through the reactors' in/out nozzles by pressure.

The merchandise was entered under subheading 8421.39.00, HTSUS, as other filtering or purifying machinery and apparatus, for liquids and gases, eligible for duty reduction under the Canadian Free Trade Agreement (CFTA). The entry was liquidated under subheading 8419.89.50, HTSUS, as other machinery, plant or equipment for the treatment of materials by a process involving a change of temperature, eligible for duty reduction under the CFTA.

Classification of the merchandise under subheading 7309.00.00, HTSUS, as reservoirs, tanks, vats and similar containers for any material, is also under consideration.

The subheadings under consideration are as follows:

7309.00.00: Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquified gas), of iron or steel, of a capacity exceeding 300 liters, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment . . . .

Goods classifiable under this provision have a general, column one rate of duty of 2.6 percent ad valorem. The CFTA rate of duty is 1.3 percent ad valorem.

8419.89.50 Machinery, plant or laboratory equipment, whether or not electrically heated, 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. . .: [o]ther machinery, plant or equipment: [o]ther: [o]ther. . . .

Goods classifiable under this provision have a general, column one rate of duty of 4.2 percent ad valorem. The CFTA rate of duty is free.

8421.39.00 . . .filtering or purifying machinery and apparatus, for liquids or gases. . .:
[f]iltering or purifying machinery and apparatus for gases: [o]ther. . . .

Goods classifiable under this provision have a general, column one rate of duty of 3.9 percent ad valorem. The CFTA rate of duty is free.

ISSUE:

Whether the chloride trap reactors are classifiable as other filtering or purifying machinery and apparatus for gases, or as other machinery or equipment for the treatment of materials by a process involving a change of temperature, or as a reservoir, tank or vat, of iron or steel, under the HTSUS?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

Based on the record, the chloride trap reactors are not part of a larger mechanical or electrical apparatus which are classifiable under chapters 84 or 85. Therefore, classification of the subject merchandise is based upon its condition at the time of importation. The chloride trap reactor is used in the process of removing chlorides from hydrogen gas. The change in temperature to remove chlorides from a stream of hydrogen gas is the result of the chemical reaction of the catalyst which is added after importation. The vat itself does not cause a change in temperature, but is merely the means of housing the chemical reaction.

The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the Customs Cooperation Council's official interpretation of the HTSUS. While not legally binding, 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. EN 73.09, page 1021, states as follows:

These containers are normally installed as fixtures for storage or manufacturing use, e.g., in factories, chemical works, dye works, gasworks, breweries, distilleries and refineries, and to a smaller extent in houses, shops, etc. This heading covers containers for any material other than compressed or liquified gas. Containers for such gas are classified in heading 73.11, irrespective of their capacity. Containers fitted with mechanical or thermal equipment such as agitators, heating or cooling coils or electrical elements fall in Chapter 84 or 85.

On the other hand containers which have simply been fitted with taps, valves, level gauges, safety valves, manometers, etc., remain in this heading.

Because the subject merchandise is a container which is not fitted with mechanical or thermal equipment, classification is precluded under Chapter 84 or 85. Based upon EN 73.09, the subject merchandise is classifiable under subheading 7309.00.00, HTSUS, as a container of iron or steel.

The protestant argues that the subject merchandise should be classified under heading 8421, HTSUS, because the chloride trap reactors are chiefly used to filter or purify the hydrogen gas. Classification under heading 8421, HTSUS, is precluded because the subject merchandise does not filter or purify, but merely contains or houses the hydrogen gas and the catalyst in order to create a chemical reaction.

HOLDING:

For the foregoing reasons, the chloride trap reactors are classifiable under subheading 7309.00.00, HTSUS, as reservoirs, tanks, vats and similar containers.

Because the rate of duty under the classification indicated above is more than the liquidated rate of duty, you should deny the protest in full. In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision, together with the Customs Form 19, should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to mailing of the decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Lexis, Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director

Previous Ruling Next Ruling

See also: