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HQ 957245




APRIL 10, 1995

CLA-2 R:C:M 957245 JAS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8415.90.80

Mr. Gurhan Demirkan
The EDGE International, U.S.A.
4333 Charles Crossing Drive
White Plains, MD 20695

RE: NY 898934 Revoked; Parts of Structures, Heading 7308; Panels for Air Conditioners, Rectangular Panels of Galvanized and Stainless Steel Insulated With Polyurethane or Rock Wool; Section XVI, Note 2

Dear Mr. Demirkan:

In a ruling to you, dated June 22, 1994, NY 898934, the Area Director of Customs, New York Seaport, held that certain panels for air conditioning machines were classifiable in subheading 7308.90.90, Harmonized Tariff Schedule of the United States (HTSUS), as plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel.

Pursuant to section 625, Tariff Act of 1930 (19 U.S.C. 1625), 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 of NY 898934 was published on March 8, 1995, in the Customs Bulletin, Volume 29, Number 10.

FACTS:

The merchandise in question is panels, sometimes referred to as casings or modules, for air conditioning machines. They attach to each other by nuts and bolts and serve to enclose the motors, coils and other working parts of the air conditioners. The panels are rectangular shaped, come in different sizes, and consist of inner and outer skins, of either galvanized or stainless steel, insulated either with polyurethane or rock wool.

The provisions under consideration are as follows:

7308 Structures and parts of structures*** plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel:

7308.90 Other:

Other:

7308.90.95 Other...5.1 percent (Free under GSP)

8415 Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated; parts thereof:

8415.90 Parts:

8415.90.80 Other...2 percent (Free under GSP)

ISSUE:

Whether panels for air conditioning machines, as described, are parts solely or principally used with air conditioning machines.

LAW AND ANALYSIS:

Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes, and provided the headings or notes do not require otherwise, according to GRIs 2 through 6.

The Harmonized Commodity Description And Coding System Explanatory Notes (ENs) constitute the Customs Cooperation Council's official interpretation of the Harmonized system. While not legally binding on the contracting parties, and therefore not dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under - 3 -
the System. Customs believes the notes should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

Heading 7308 encompasses complete or incomplete metal structures and parts of such structures. Relevant ENs at p. 1020, indicate that heading 7308 covers parts such as flat-rolled products, "wide flats" including so-called universal plates, strip, rods, angles, shapes, sections and tubes, which have been prepared (e.g., drilled, bent or notched) for use in structures. The panels in issue are composite goods consisting of steel components and the heat insulating agents polyurethane or rock wool. They are fabricated articles that do not conform to the description for parts. The ENs continue at p. 1021 by excluding from heading 7308 constructions clearly identifiable as machinery parts. These are referred to Section XVI. We conclude that the panels in issue are not goods of heading 7308.

Goods that are identifiable as parts of machines or apparatus of chapters 84 and 85 are to be classifiable according to Section XVI, Note 2, subject to the exceptions stated in that note and to the extent the note is applicable. Parts which are goods included in any heading of chapter 84 or 85 are in all cases to be classified in their respective headings. Note 2(a). The panels in issue are not classifiable according to this note. Other parts suitable for use solely or principally with a particular machine or with a number of machines of the same heading, are to be classified with the machines of that kind. Note 2(b). The instant panels qualify as parts for tariff purposes, and are principally, if not solely used with air conditioning machines of heading 8415.

HOLDING:

Under the authority of GRI 1, the panels for air conditioning machines are provided for in heading 8415. They are classifiable in subheading 8415.90.80, HTSUS. Goods so classified, from Turkey, are eligible for duty-free entry under the Generalized System of Preferences (GSP), upon compliance with the law and applicable Customs Regulations.

EFFECT ON OTHER RULINGS:

NY 898934, dated June 22, 1994, is revoked. In accordance with section 625 this ruling will become effective 60 days after its publication in the Customs Bulletin. Publication of rulings or decisions pursuant to section 625 does not constitute a change - 4 -
of practice or position in accordance with section 177.10(c)(1), Customs Regulations (19 CFR 177.10(c)(1)).

Sincerely,

John Durant, Director
Commercial Rulings Division


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