Nov 2 CBP Bulletin Proposed Ruling Actions on Gas Generator
In the November 2, 2011 issue of the U.S. Customs and Border Protection Bulletin (Vol. 45, No. 45), CBP published a notice that proposes to modify or revoke two rulings and similar treatment regarding the classification of certain gas generators.
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Comments on Proposed Ruling Actions Due December 2
CBP states that any party who has received a ruling or decision on the merchandise that is subject to the proposed modification or revocation, or any party involved with a substantially identical transaction, should advise CBP by December 2, 2011, the date that written comments on the proposed rulings 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 agents for importations subsequent to the effective date of the final decision in this notice.
Proposed Modification and Revocation
CBP is proposing to modify or revoke the rulings below, and any rulings on these products 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.
Certain Gas Generators
| Item: Three gas generators. Generators 1 and 2 were originally designed as turbojets to provide motive power for aircraft, but have been adapted for industrial uses (and are thus referred to as aeroderivatives). Generator 3 is coupled to a power turbine after importation to form a complete gas turbine engine. |
| Current: Generators 1 & 2, 8411.82.80, 2.5 % (other gas turbines); Generator 3, 8411.99.90, 2.4% (a part of a gas turbine) |
| Proposed: 8411.82.80, 2.5% (other gas turbines) |
| Reason: CBP states that the three gas generators are classifiable as gas turbines under HTS subheading 8411.82.80 because they consist of a compressor, a combustion chamber, and a turbine to power the compressor. Regarding Generators 1 and 2, CBP notes that turbojets are classified in subheading 841.12.80 and are commonly recognized as gas turbine engines. But because aeroderivative gas turbine engines have a completely different purpose and stream of commerce than turbojets, they are classified as subheading 8411.82 "other gas turbines." Regarding Generator 3, CBP believes a misunderstanding of the basic gas generator, the definition of gas turbines, and the turbine component in a basic gas generator, led to the classification of the generator as a "part." However, it should also be classified as an "other gas turbine" under subheading 8411.82. |
| Proposed for modification: HQ 967102 (2004) Proposed for revocation: HQ 087981 (1990) |
| Proposed new ruling: HQ W968276, HQ H108255 |