December 10, 2009 CBP Bulletin Notice on Classification of Automotive Fan Shrouds
In the December 10, 2009 issue of the U.S. Customs and Border Protection Bulletin (Vol. 43, No. 50), CBP published a notice proposing to revoke two rulings and a treatment as follows:
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Proposed revocation of rulings; proposed revocation of treatment. CBP is proposing to revoke two rulings on the classification of automotive fan shrouds. Additionally, CBP proposes that this notice covers any rulings on this merchandise that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
CBP states that any party who has received an interpretive ruling or decision on the merchandise that is subject to the proposed revocations, or any party involved with a substantially identical transaction, should advise CBP by January 11, 2010, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.
Automotive fan shrouds. The merchandise in NY N014061 is described as two fan shrouds used in the manufacturer of automobiles. The first fan shroud, identified as an Air Conditioner Shroud (Part 38615-P1E-A00), is constructed of steel and is used to, "protect elements of the air conditioner subassembly, including the fan and exterior condenser, from damage during operation of the vehicle." The second item is identified as a Radiator Shroud (Part 19015-RBB-003) and is one of several components that make up the radiator cooling system used in certain automobiles. The shroud is constructed of plastic and "protect(s) the radiator fan (to) facilitate continued operation of the radiator.
In NY D88203, the subject automotive fan housing, (also referred to as a "fan shroud") was described as being made from injected molded plastic and mounted on the engine side of the vehicle's radiator. Twin electric cooling fans are mounted onto the fan housing. The radiator fan shroud or the cooling system fan shroud facilitate the functioning of the radiator or air cooling system by effectively directing the air over the radiator and throughout the engine compartment.
CBP is proposing to issue HQ H027029 and HQ H029003 in order to revoke NY N014061 and NY D88203, and reclassify the automotive fan shrouds under HTS 8414 as parts of fans, rather than under HTS 8708 as parts of an automotive radiator or HTS 8415 as parts of an automotive air conditioner.
CBP proposes this change as a correction based on Section XVI Note 2 (b), with support from prior rulings.
Each fan shroud completes the fan assembly used in the air conditioning condenser or the radiator, and provides the structural mounting necessary to support the fan blades and the fan motor. Further, each shroud provides a means to direct the air flow produced by the fan blades to the vehicle's radiator or air conditioning condenser. Accordingly, each fan shroud is solely or principally used with an automotive fan which, in turn, operates with the radiator or air conditioning condenser, rather than as a part of the motor vehicle as a whole, under Note 2 (b) to Section XVI.
In NY E83687, dated July 30, 1999, CBP held that fan shrouds designed to house the fan blades within the engine compartment and used in an "electrodrive cooling system" were parts of a fan classified in heading 8414. CBP explained that the fan shroud components were not complete fans but instead were parts that will be assembled with other components to form a completed fan. Similarly, in HQ 966787, dated February 9, 2004, CBP classified a "fan shroud assembly" as a complete axial fan, in part, because the article consisted of: an axial fan, fan blades, fan shrouds, a temperature sensor, mounting brackets and its intended purpose was for use as a fan.
Fan shrouds complete the fan assemblies into an automobile's radiator or air cooling system. It is a long-standing classification principle that "a part of [a] particular part is more specifically provided for as a part of the part than as a part of the whole." C.F. Liebert v. United States, 287 F. Supp. 1009 (1968). Therefore, the shrouds are more immediately parts of fans than they are parts of radiators, air cooling systems or automobiles as a whole. In keeping with the reasoning in C.F. Liebert, and previous rulings involving substantially similar merchandise, CBP finds that the subject fan shrouds are classified as parts of completed fan in heading 8414.
CBP now proposes that by application of GRI 1 and pursuant to Section XVI Note 2 (b), the subject automotive fan housings are classified in subheading 8414.90.10 which provides for "Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof: Parts: Of fans (including blowers) and ventilating or recycling hoods: Other."
Proposed: 8414.90.10, 4.7%; Current: 8708.91.7550, 2.5%; 8415.90.8045, 1.4%; and 8708.99.8180, 2.5%
December 10, 2009 CBP Bulletin (Vol. 43, No. 50) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2009/