The tariff classification of a Marine Tunnel Thruster from various countries

N186781 October 26, 2011 CLA-2-84:OT:RR:NC:1:104 CATEGORY: Classification TARIFF NO.: 8479.89.9899 Mr. Jon R. Weiner Rolls-Royce North America 2001 S. Tibbs Avenue Speed Code S36 Indianapolis, IN 46241 RE: The tariff classification of a Marine Tunnel Thruster from various countries Dear Mr. Weiner: In your letter dated September 29, 2011 you requested a tariff classification ruling. The imported item is called a marine tunnel thruster imported with a hydraulic power pack powered by an electric motor all contained in one unit. The hydraulic power pack is composed of two rotary positive displacement gear-type hydraulic pumps, an oil tank, a variety of valves, switches, hoses, and connections. The electric motor is a 3-phase AC motor with a power rating of 1.8 kW. A tunnel thruster is a propulsion device that is built into the bow of a ship or boat in order to make it more maneuverable. It is also used in dynamic-positioning systems to power and position offshore oil production platforms, and to hold large vessels such as drill ships and other rigs in place where the waters are too deep for anchoring. The purpose of the hydraulic power pack is to provide hydraulic power that alters the pitch or angle of the propeller blades of the thruster. The tunnel thruster is affixed in a tunnel that runs the full width of the hull and does not rotate. It cannot be moved to direct its propulsive force nor can it steer the vessel. When a ship is lining up parallel to its berth, it can use the tunnel thruster to move in a perpendicular line toward the berth. However, the tunnel thruster does not perform a steering function. It only provides the side-to-side motion. When installed on a platform, the tunnel thrusters are used by the dynamic positioning system to maintain the platform’s position by counteracting environmental disturbances such as wind and ocean currents. In your ruling you cited NY ruling L82977 in which a boat thruster imported with a hydraulic power system was classified under subheading 8412.29.80 of the Harmonized Tariff System of the United States (HTSUS) which provides for “Other Engines and Motors: Hydraulic Power Engines and Motors: Other: Other.” As per the National Import Specialist for heading 8412, HTSUS, the hydraulic power pack is not a prime mover for the thrusters. The hydraulics simply serve to adjust the pitch of the prop blades. Thus, heading 8412, HTSUS, would not be applicable. In your letter you also proposed subheading 8413.60.0030, HTSUS, which provides for “Other rotary positive displacement pumps, hydraulic fluid power pumps, gear type. As per the National Import Specialist for heading 8413, HTSUS, the article incorporates a pump of 8413, but it has functionality outside the scope of 8413. The applicable subheading for the Marine Tunnel Thruster 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% 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