The tariff classification of a fuel conversion system for a diesel engine from Germany

N070555 August 26, 2009 CLA-2-84:OT:RR:E:NC:N1:102 CATEGORY: Classification TARIFF NO.: 8481.80.9050 Ms. Cheryl M. Smith Star USA, Inc. 250 N Davis Road Ashland, OH 44805 RE: The tariff classification of a fuel conversion system for a diesel engine from Germany Dear Ms. Smith: In your letter dated July 31, 2009 you requested a tariff classification ruling on behalf of your client Altronic. Descriptive information was submitted. The article in question is described as the GTI Bi-Fuel System which converts a standard diesel engine allowing the engine to operate on up to 70% natural gas or bio-gas. The system is comprised of a number of components, including a control panel, a fixed-venturi air-gas mixing device, and various valves that allow the gaseous fuel to be safely introduced into the engine’s combustion chambers. In your request, you suggest that the conversion system is a composite good having the essential character of a solenoid valve and as such is classified at General Rule of Interpretation (GRI) 3(b) in subheading 8481.80.9005, Harmonized Tariff Schedule of the United States (HTSUS). While we agree the system is classified as an appliance of HTSUS heading 8481, we find that classification is at GRI 1. At GRI 1 classification is determined in accordance with the terms of the headings and any relative section or chapter notes. The conversion system, which is for use solely with diesel engines, is, prima facie, a part of the engine. Parts of engines are provided for in HTSUS heading 8409. Heading 8409, as well as heading 8481, fall within section XVI of the tariff. Note 4 to section XVI provides that when a combination of machines contribute to a clearly defined function covered by one of the headings in chapter 84 of the tariff, then the whole falls to be classified in the heading appropriate to that function. All the components of the conversion system contribute together to control the flow of a fluid, i.e. gaseous fuel, to the engine. Because that function is appropriate to HTSUS heading 8481, the conversion system falls to be classified in heading 8481, HTSUS, at GRI 1. Because the valves of which the system is comprised are actuated by a number of means other than by solenoid, HTSUS subheading 8481.80.9005 does not provide a complete description. However, the system may be classified elsewhere within HTSUS heading 8481 without reliance on essential character. The applicable subheading for the GTI Bi-Fuel System will be 8481.80.9050, which provides for other taps, cocks, valves and similar appliances. The rate of duty will be 2 percent ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177). A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Kenneth T. Brock at (646) 733-3009. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division