CBP Ruling H008507

HQ H008507 June 4, 2012 CLA-2 OT:RR:CTF:TCM H008507JER CATEGORY: Classification TARIFF NO.: 8415.20 John M. Peterson, Esq. Neville Peterson, LLP 17 State Street, 19th Floor New York, NY 10004 RE: Revocation of New York Ruling Letter M87553; Classification of the Brisk Air Rooftop Air Conditioner Dear Mr. Peterson: This letter is in response to your request of March 9, 2007, for reconsideration of New York Ruling Letter (NY) M87553, dated November 6, 2006, classifying the subject "Brisk Roof Top Air Conditioner" under subheading 8415.82.01, of the Harmonized Tariff Schedule of the United States (HTSUS). We have reviewed NY M87553 and found it to be incorrect. For the reasons set forth in this ruling, we are revoking NY M87553. 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 of NY M87553 was published on November 30, 2011, in the Customs Bulletin, Volume 45, Number 49. No comments were received in response to the proposed revocation. FACTS: NY M87553 described the subject merchandise as follows: The article in question is described as the "Model Brisk" air conditioner used primarily for recreational travel trailers. The units are designed for installation through an existing roof vent or through a ceiling utilizing wood framing materials. The units are self-contained and have cooling capacities that range from 11,000 to 15,000 BTU (3.22 to 4.39 kW/hour). Descriptive information was submitted. Exhibit B of the March 9, 2007 submission describes the subject merchandise as the: "DUO-THERM(r) BRISK AIR ROOFTOP AIR CONDITIONER." Exhibit D of the submission describes the merchandise as the: "Dometic DUO-THERM Model 6003 Roof-Top Air Conditioner" and notes that: "This air conditioner is specifically designed for installation on the roof of a recreational vehicle (RV)...it is preferred that the air conditioner be installed on a relatively flat and level roof section measured with the RV parked on a level surface...an 8° slant on either side or front or back is acceptable." ISSUE: Whether the "Brisk Roof Top Air Conditioner" is classifiable as a self-contained window or wall type in subheading 8415.10.30, HTSUS, or as a air conditioning machine of a kind used for persons, in a motor vehicle in subheading 8415.20.00, HTSUS, or as a other than year-round unit, incorporating a refrigeration unit, self-contained type, in subheading 8415.82.01, HTSUS. 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. GRI 6 provides that the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only those subheadings at the same level are comparable. The 2006 HTSUS provisions under consideration are as follows: 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: 8415.10 Window or wall types, self-contained or "split-system": 8415.10.30 Self-contained * * * 8415.20.00 Of a kind used for persons, in motor vehicles * * * Other, except parts: * * * 8415.82.01 Other, incorporating a refrigerating unit: Self-contained machines and remote condenser type air conditioners other than year-round units... The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding nor 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, 35128 (August 23, 1989). EN 84.15 provides, in pertinent part, as follows: Subheading Explanatory Notes. Subheading 8415.10 This subheading covers air conditioning machines of window or wall types, self-contained or "split-system". The self-contained type air conditioning air conditioners are in the form of single units encompassing all required elements and being self-contained. The "split-system" type air conditioners are ductless and utilize a separate evaporator for each area to be air conditioned (e.g., each room). * * * Subheading 8415.20 This subheading covers equipment which is intended mainly for passenger motor vehicles of all kinds, but which may also be fitted in other kinds of motor vehicles, for air conditioning the cabs or compartments in which persons are accommodated. There is no dispute that by application of GRI 1, the subject "Brisk Roof Top Air Conditioner" (hereinafter, Roof-Top Model) is classified in heading 8415, HTSUS, which provides for: "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." At issue is classification at the six-digit level by application of GRI 6. In your submission, you contend that the subject merchandise should be classified in subheading 8415.10, HTSUS, as a self-contained window or wall type air conditioning machine, or in the alternative, in subheading 8415.20, HTSUS, as an air conditioning machine of a kind used for persons, in a motor vehicle. Specifically, you assert that the use of the word "type" suggests that subheading 8415.10, HTSUS, is broad in scope and intended for goods to be classified according to their construction, styling and capabilities rather than a literal interpretation of the phrase "window or wall types." In support of this position, you offer NY R02265, dated August 10, 2005, which classified a self-contained climate control unit in subheading 8415.10, HTSUS, despite the fact that it was mounted inside of a door (rather than in a window or wall). EN 84.15 explains that subheading 8415.10, HTSUS, includes window or wall air conditioning machines, which are either self-contained or "split-system." Self-contained window or wall type air conditioners are mounted into an opening in a window or wall, which are both vertical surfaces. The design of the drainage system for an A/C unit mounted vertically differs from those which are mounted horizontally. This design distinguishes window or wall type A/C units from the instant merchandise.1 While the subject Roof-Top Model is a self-contained A/C unit it is not designed to be mounted or installed in a vertical surface such as a window, wall or door. As such, we find that the subject Roof-Top Model is not classifiable in subheading 8415.10, HTSUS, as a window or wall type A/C unit. Alternatively, you argue that the subject Roof-Top Model is classifiable in subheading 8415.20, HTSUS as an air-conditioning machine of a kind used for persons, in a motor vehicle. We agree. At the GRI 6 level, the subheadings of heading 8415, HTSUS, provide for "air-conditioning machines...of a kind used for persons in a motor vehicle." CBP has previously classified AC units used in motor vehicles under subheading 8415.20, HTSUS. For instance, we classified a climate control system for vehicle truck cabs in subheading 8415.20, HTSUS. See NY M81991, dated April 26, 2006. In that ruling, the merchandise was designed to be integrated into and dependent upon the vehicle's heating and ventilation system, thus making use of the vehicle's air ducts, vents, automotive fans, radiator and power source. While the subject Roof-Top Model is an independent ventilation and cooling system, its independent design does not preclude it from classification under subheading 8415.20, HTSUS. As the ENs to subheading 8415.20, HTSUS, explain, "[t]his subheading covers equipment which...may also be fitted in other kinds of motor vehicles, for air conditioning the cabs or compartments in which persons are accommodated." A recreational vehicle (RV) is a kind of motor vehicle for tariff classification purposes. As we noted in Vehicles, Parts and Accessories Under the HTSUS, Informed Compliance Publication (May 2009): The term "vehicle" is derived from the Latin word "vehiculum." It means a carriage or conveyance. The type of vehicles which go in Chapter 87 are, for the most part, those whose main function is to transport people or things from one place to another (three exceptions: tractors, special purpose motor vehicles and armored fighting vehicles). In the instant case, the RV is used to transport and accommodate people. Moreover, the principal purpose of the subject merchandise is to provide air conditioning in a compartment of an RV in which persons are accommodated. Accordingly, we find that the terms of subheading 8415.20, HTSUS "air-conditioning machines...of a kind used for persons in a motor vehicle", describes the subject merchandise. HOLDING: By application of GRI 1, the subject Brisk Roof Top Air Conditioner is classified in heading 8415, HTSUS. It is specifically classified at GRI 6 in subheading 8415.20.00, HTSUS, which provides for: "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: of a kind used for persons, in motor vehicles." The 2006 column one, general rate of duty was 1.4% ad valorem. Duty rates are provided for convenience only and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov. EFFECT ON OTHER RULINGS: NY M87553, dated November 6, 2006, is hereby revoked. In accordance with 19 USC §1625 (c), this ruling will become effective 60 days after publication in the Customs Bulletin. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division 1 In your March 9, 2007 submission on page 4, it explicitly states that "This air conditioner is specifically designed for installation on the roof of a recreational vehicle (RV)." The submission further describes the subject merchandise as a "Roof-Top Air Conditioner" which should be installed on a "flat and level roof section." Id. at 1 and 4. Specifications in Exhibit D of your submission explain that an "8° slant on either side or front or back is acceptable for all units." id. at 4. --------------- ------------------------------------------------------------ --------------- ------------------------------------------------------------ 6