The tariff classification of a Transformer Protector Explosion Prevention System from the United States

N149059 March 18, 2011 CLA-2-84:OT:RR:NC:1:104 CATEGORY: Classification TARIFF NO.: 8479.89.9899 Mr. Clinton Yu Givens & Johnston, PLLC 950 Echo Lane, Suite 360 Houston, TX 77024-2788 RE: The tariff classification of a Transformer Protector Explosion Prevention System from the United States Dear Mr. Yu: In your letter dated February 7, 2011 on behalf of Transformer Protector Corporation, you requested a tariff classification ruling. The Transformer Protector Explosion Prevention System (“Transformer Protector”) is designed to reduce the incidence of transformer explosions and fires. The device is described as a passive mechanical system which utilizes a combination of high-speed depressurization, nitrogen injection and oil-gas separation to prevent transformer explosions in oil-cooled transformers with ratings up to 1,000 MVA and larger. Oil cooled transformers operate submerged in a tank of oil. This oil is circulated to remove the heat from the transformer and exhaust it through a tank equipped with heat exchangers. When a transformer explodes, generally as a result of a transformer short circuit, the oil becomes a fire hazard. The Transformer Protector is only activated when a pre-determined critical pressure level of transformer tank internal pressure is reached during short-circuits. You indicate that the Transformer Protector does not include a transformer. The Transformer Protector is shipped unassembled, lacking only the interconnecting piping, in one shipment. As presented, the unassembled, incomplete system does possess the essential character of a complete or finished transformer protector. While Transformer Protectors may vary with the addition of options chosen by a customer to meet his specific needs, you indicate that the basic model of the Transformer Protector contains the following four major components: (1) Depressurization Set - Relieves overpressure through the use of a rupture disk. This rupture disk simply “ruptures” (opens) upon high pressure. The Depressurization Set is comprised of an isolation valve, a rupture disc and a decompression chamber. (2) Oil-Gas Separation Set – Collects the mixture of depressurized oil and flammable gases, separates the flammable gases from the oil and channels the gases to a safe location. (3) Inert Gas Injection Set – An inert medium (nitrogen) is injected (manually or automatically) after depressurization so as to (a) end explosive gas generation and (b) create a safe atmosphere inside the transformer for maintenance. (4) Control Panel – Functions as an interface between the Transformer Protector components. All the modules contribute together to the single function of transformer explosion prevention. You suggest that the device be classified in subheading 8504.90.9540, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical transformers, static converters (for example rectifiers) and inductors; parts thereof: Parts: Other: Other: Other parts: Of transformers.” As per the National Import Specialist who handles heading 8504, HTSUS, the four components (machines) of the Transformer Protector would not be considered a part of a transformer because they do not complete the function or contribute to the functioning of a transformer, which is to transform an alternating current into another alternating current of different voltage, impedance, etc., by means of induction, “without” any moving parts.  While there is no doubt that the Transformer Protector contributes to the safer functioning of a transformer, it does not assist in the function that a transformer of heading 8504 executes, but rather detects any over heating and as a result takes action.  One of the components within the Transformer Protector contains a shutter so as not to allow air to flow back into the pipes.  It appears that the shutter is a moving part. In accordance with EN 85.04 (I), Electrical Transformers do not have any moving parts. In view of the above, the Transformer Protector would not be considered to be a part of a transformer within subheading 8504.90.9540, HTSUS.   The applicable subheading for the basic Transformer Protector Explosion Prevention System (“Transformer Protector”), as described above, will be 8479.89.9899, 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: Other … Other. The general rate of duty will be 2.5 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