Request for Reconsideration of NY N012323, NY N161399, and NY N006439; Classification of Manifold and Tank Fitting Packages

HQ H301538 July 22, 2019 OT:RR:CTF:EMAIN: H301538 PF CATEGORY: Classification TARIFF NO.: 8481.40.00; 8481.80.30; 9032.20.00 Mr. Jonathan Torres Boshart Industries, Inc. 25 Whaley Avenue P.O. Box 310 Milverton, Ontario N0K 1M0 Re: Request for Reconsideration of NY N012323, NY N161399, and NY N006439; Classification of Manifold and Tank Fitting Packages Dear Mr. Torres: This is in response to your letter, dated August 27, 2018, in which you request reconsideration of New York Ruling Letter (“NY”) NY N012323, NY N161399, and NY N006439, issued to Boshart Industries, Inc. (“Boshart”). NY N012323 was issued on June 28, 2007 and involves the classification of a constant pressure manifold under the Harmonized Tariff Schedule of the United States (“HTSUS”). NY N161399 was issued on May 13, 2011 and involves the classification of a manifold package under the HTSUS. NY N006439 was issued on March 9, 2007 and involves the classification of a tank fitting package under the HTSUS. We have determined that NY N012323, NY N161399, and NY N006439 are correct, and, for the reasons set forth below, are affirming these rulings. We are also returning samples of the merchandise included with your reconsideration request. NY N012323 gave the following description of the constant pressure manifold: The article in question is described as a constant pressure manifold for use with water storage tanks for water well systems. The manifold is comprised of individual components that are used together when installing a water tank in a well system. The components include a stainless steel manifold, a pressure gauge, a stainless steel hose bib, a stainless steel relief valve, a bracket mounting kit, a stainless steel bushing, and two plastic bushings. The individual components are imported into Canada from various countries and packaged in Canada for distribution to dealers. The stainless steel manifold originates from Taiwan. The gauge, relief valve, hose bib, bracket kit and stainless steel bushing originate from China. The plastic bushings originate from the United States. You state that the pressure manifold is sold as a unit, all components packaged together, unassembled, in a single carton. Accordingly, the manifold components form a set for tariff purposes. The manifold package was described as follows in NY N161399: The article under consideration is described as a stainless steel Manifold Package, part number TFP-07M125SS-03. Descriptive literature and a representative sample were included with your submission. The sample will be returned to you. The Manifold Package is comprised of individual components that are used together when installing a water storage tank in a well system. It includes a manifold, a ball valve with a hand operated actuator, a hose bibb, a bushing, a threaded plug and a pressure gauge all of which are made of stainless steel. These individual components are imported into Canada from various countries and packaged together in Canada for distribution to dealers in Canada and the U.S. The manifold originates from Vietnam. The ball valve, hose bibb, bushing, plug and pressure gauge originate from China. The ball valve attaches to one end of the manifold and is the main shutoff between the water line from the well and the water storage tank. The hose bibb, bushing, plug and pressure gauge are connected to the other various ports on the manifold. The hose bibb is used to drain the water line if and when repairs are necessary to the system. The plug and bushing will be used to either seal a port or fasten a different apparatus to the manifold such as a switch or a monostat while the pressure gauge gives a visual reading of the pressure in the water line. You state that the Manifold Package is sold as one unit, all components packaged together, unassembled in a single carton. As such, the components of this product form a set for tariff purposes. NY N006439 provided the following description of the tank fitting package: “A tank fitting package is comprised of the following components: 1 - tank tee (may be either bronze, galvanized, or stainless steel) c/o TW 1 - ¼” X 3” pipe nipple (may be either bronze, galvanized, or stainless steel) c/o CN 1 – Sediment valve c/o ID 1 – Relief valve c/o TW 1 – Pressure gauge c/o CN 1 – Pressure switch c/o MX” You also state: “The tank fitting package is generally sold unassembled, packaged in one carton with its own SKU and can be ordered in various configurations… The tank fitting package is installed in the main water line between the water well and the water storage tank for a private water well system. The purpose of the individual parts is as follows: The tank tee is the main connection between the water line and the storage tank. It also has various ports for connecting the required components for the operation of the system, i.e. sediment and relief valve, switch, gauge, etc. The sediment valve permits the operator to drain any sediment out of the line and storage tank. The relief valve will release any excess pressure in the line should the switch malfunction. The pressure gauge is strictly for visual use to monitor the pressure in the waterline. The switch is the main operator and is connected to the water pump. Operation: The volume of water in the storage tank must remain fairly constant in order to ensure a steady supply of water to the user. As the volume of water in the storage tank drops so does the pressure in the water line. When the pressure in the water line drops to a preset level the water pressure acting on the pressure switch lessens and activates the switch which in turn starts the water pump. As water is pumped from the water well into the storage tank the volume of water in the storage tank increases and so does the pressure in the water line. The pressure acting on the switch will increase to a preset level and turn off the switch shutting off the pump. If the switch malfunctions and does not turn the pump off, the relief valve will release the excess pressure and thereby protect the system from damage. The components form a complete regulating apparatus required for the proper operation of the water supply system.” Unlike the gas train assemblies in Headquarters Ruling Letter 966982, the valves here are not used to change the flow of the fluid in normal operation. In normal operation, the water will pass through the pipe section unimpeded. The pipe (Tank tee) has thread openings on one side of the tee for the mechanical pressure gauge to be screwed in and on the other side for the pipe connecting the “Pressure switch” to the tee. The subject merchandise in NY N012323 and NY N161399 is described as being packaged together as a set and is used when installing a water tank in a well system. The sets consist primarily of a manifold or tank tee, fittings or fittings with bushings, a ball valve or drain valve, a pressure relief valve, and a pressure gauge. In addition to these components, the tank tee fitting package includes a pressure switch. Moreover, the subject merchandise in NY N006439 is also packaged as a set and is comprised of a tank tee, a pipe nipple, a sediment valve, a relief valve, a pressure gauge, and a pressure switch. In NY N012323, CBP classified the constant pressure manifold in subheading 8481.40, HTSUS, which provides for “Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: Safety or relief valves.” CBP classified the manifold package in NY N161399 in subheading 8481.80.30, HTSUS, which provides for “Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: Other appliances: Hand operated: Of iron or steel.” In NY N006439, CBP classified the tank fitting package in subheading 9032.20, HTSUS, which provides for “Automatic regulating or controlling instruments and apparatus; parts and accessories thereof: Manostats.” In your reconsideration request, you contend that the classifications in NY N012323, NY N161399, and NY N006439 are incorrect. You maintain that the tank tee fitting is the principal component that imparts the essential character of the sets in NY N012323, NY N161399, and NY N006439 and request that these rulings be reconsidered. The tank tee fitting’s role is to facilitate the connection between a water well and a water storage tank and to connect the multiple components that contribute to the proper operation of the system. However, we are of the view that there are other components that impart the essential character with respect to the sets in NY N012323, NY N161399, and NY N006439. You describe that the function of the manifold in NY N012323 is to connect the pressure tank and other mechanisms to the water well system. The manifold set is used where the water well system is always under a constant pressure. The relief valve, which is included as part of the manifold set, is the mechanical apparatus that is designed to open and release pressure should the pressure exceed a specific parameter. Based on the relief valve’s functionality, it is evident that the role of the valve is critical for a system that must remain under constant pressure. Therefore, we find that the relief valve imparts the essential character of the constant pressure manifold in NY N012323. Pressure relief valves are provided for in heading 8481, HTSUS, and specifically provided for in subheading 8481.40, HTSUS. Accordingly, the constant pressure manifold set remains classified in subheading 8481.40, HTSUS. The manifold package set in NY N161399 is comprised of multiple components that are used when installing a water storage tank in a well system. The ball valve, which is a component of the manifold package set, provides a means to obtain water samples and allows water to be used from the well system. The ball valve also drains the tank and water system of water and sediment when a pressure tank requires replacement. The ball valve’s functionality is indispensable to the water well system, and as such, imparts the essential character of the manifold package set. Ball valves are provided for in heading 8481, HTSUS, and specifically provided for in subheading 8481.80.30, HTSUS. Accordingly, the constant pressure manifold set remains classified in subheading 8481.80.30, HTSUS. In NY N6006439, we determined that the tank fitting package set was classified in heading 9032, HTSUS, based on the pressure switch’s function as a manostat. The pressure switch ensures that the water pressure in the system remains constant and sends instructions to a pump to increase the pressure if it falls below the established level. Therefore, the essential character of the tank fitting package set is imparted by its function as a manostat, which is provided for in heading 9032, HTSUS. For all the aforementioned reasons, we hereby affirm NY N012323, NY N161399, and NY N006439. Accordingly, the constant pressure manifold in NY N012323 remains classified in heading 8481, HTSUS, and specifically in subheading 8481.40, HTSUS, as “Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: Safety or relief valves.” The manifold package in NY N161399 remains classified in heading 8481, HTSUS, and specifically in subheading 8481.80.30, HTSUS, as “Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: Other appliances: Hand operated: Of iron or steel.” The tank fitting package in NY N006439 remains classified in heading 9032, HTSUS, and specifically in subheading 9032.20, HTSUS, as “Automatic regulating or controlling instruments and apparatus; parts and accessories thereof: Manostats.” Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division