The tariff classification of energy recovery ventilators from Canada

N103203 May 24, 2010 CLA-2-84:OT:RR:NC:1:104 CATEGORY: Classification TARIFF NO.: 8479.89.6500 Ms. Corie Koropatnicki GHY USA Inc. Customs Brokers/Trade Consultants 572 South 5th Street Pembina, ND 58271 RE: The tariff classification of energy recovery ventilators from Canada Dear Ms. Koropatnicki: In your letter dated April 20, 2010 on behalf of Tempeff North America you requested a tariff classification ruling. The RG Series Dual Core Energy Recovery Ventilators is designed to evacuate stale air and replace it with fresh air. The units are available in various configurations. Models vary depending on the air volume required by the customer or the options chosen. A standard dual core unit contains a damper section, energy cores comprised of aluminum plates, fans/blowers (e.g., an exhaust fan and a supply fan) and self-contained motors. A unit may include optional equipment such as cooling coils, heating coils and filters. The models are used in applications such as schools, apartment/condo complexes and factories. Regardless of the configuration, all the models are capable of transferring sensible (temperature) and latent (humidity) energy. When in “Shut Down Mode”, the dampers close so as to isolate the building from the atmosphere. In “Energy Recovery Mode Phase 1”, the dampers position so that Energy Core A adds energy to the supply air stream. This action heats up the air. At the same time, Energy Core B is absorbing energy from the exhaust air stream. After 60 seconds, the dampers reposition. In “Energy Recovery Mode Phase 2”, the dampers reposition so that Energy Core B is now adding the energy it reclaimed in Phase 1 to the supply air stream, thereby heating it up. Energy Core A is now absorbing energy from the exhaust air stream. Phase 1 and Phase 2 alternate every 60 seconds so as to constantly deliver high energy recovery regardless of outdoor air temperatures. No energy recovery will take place in the “Free Cooling Mode”. In your letter, you suggest that the heat recovery system would be correctly classified as a heat exchanger in subheading 8419.50.5000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for 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 cooling…: heat exchange units: other. This is not correct as the system has no system of parallel closed paths wherein cold and hot gasses pass, separated by thin metal walls in such a matter that one gas is cooled and the other heated. Instead, a portion of the system which is warm or cool, has ambient air passed across it with the assistance of a fan and there is no actual exchange. Thus, subheading 8419.50.5000, HTSUS, would not be applicable. The applicable subheading for the RG Series Dual Core Energy Recovery Ventilation Equipment will be 8479.89.6500, HTSUS, which provides for Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Other: Electromechanical appliances with self-contained electric motor: Other. The rate of duty will be 2.8 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 Patricia O’Donnell at (646) 733-3011. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division