The tariff classification of refrigerated air dryers from Turkey.

N176164 August 15, 2011 CLA-2-84:OT:RR:NC:N1:106 CATEGORY: Classification TARIFF NO.: 8419.89.9540 Maureen Florence Bejar, Business Area Rep/Import Coordinator Sullair Corporation 3700 East Michigan Blvd Michigan City, IN 46360 RE: The tariff classification of refrigerated air dryers from Turkey. Dear Ms. Bejar: In your letter dated July 21, 2011, you requested a tariff classification ruling. The items under consideration have been identified as refrigerated air dryers, models: RC, RD, and RN. According to the information found on the website provided by you, these air dryers are equipped with a mono-block heat exchanger system constructed of air/air heat exchanger, air/refrigerant and moisture separator. This system operates in three phases: The first phase, called Economiser, pre-cools hot inlet compressed air The second phase cools the already pre-cooled air to achieve the dew point The third phase removes 99.99% of the water to supply a real 37F dew point The fourth phase drains the liquid and moisture free air flows through the inner tube to the outlet. You suggested that the refrigerated air dryers be classified under 8418.69, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Refrigerators, freezers and other refrigerating or freezing equipment…: Other…: Other.” Classification of goods in the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 3 states in pertinent parts (a)“ …The heading which provides the most specific description shall be preferred to headings providing a more general description…,” (b) “…[Goods] shall be classified as if they consisted of the material or component which gives them their essential character and (c ) “When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.” The refrigerated air dryer is a composite machine which performs three principal functions: refrigerating, cooling, and drying. All three functions of the machine are covered by different subheadings in the HTSUS, such as 8418.69 and 8419.89. Pursuant to GRI 3(c), the refrigerated air dryer should be classified under HTS 8419.89, because it occurs last in numerical order. The applicable subheading for the refrigerated air dryers RC, RD and RN will be 8419.89.9540, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machinery… for the treatment of materials by a process involving a change of temperature such as… drying… cooling…: Other machinery…: Other: Designed for cooling: Other”. The rate of duty will be 4.2% 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/. Articles classifiable under subheading 8419.89.9540, HTS, which are products of Turkey, may be entitled to duty free treatment under the GSP upon compliance with all applicable regulations. The GSP is subject to modification and periodic suspension, which may affect the status of your transaction at the time of entry for consumption or withdrawal from warehouse. To obtain current information on GSP, check our Web site at www.cbp.gov and search for the term "GSP". 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 Matthew Sullivan at (646) 733-3013. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division