Mitsubishi Power America Launches Customs Row Over Supported SCR Catalysts
CBP misclassified Mitsubishi Power America's supported selective catalytic reduction (SCR) catalysts, resulting in the entries wrongly being assessed Section 301 duties, the importer argued in a Jan. 4 complaint at the Court of International Trade. Instead, the supported SCR catalysts fit under a different Harmonized Tariff Schedule subheading that was granted an exclusion to the Section 301 China tariffs by the Office of the U.S. Trade Representative, the importer said (Mitsubishi Power Americas v. U.S., CIT #21-00573).
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The supported SCR catalysts are installed in large stationary catalytic systems that process fossil fuel combustion gases, the complaint said. Their function is to facilitate chemical reactions in these reduction systems. What the catalysts don't do is provide filtration or purification services for liquids or gases in these reduction systems, the importer said.
Mitsubishi originally imported the supported SCR catalysts under HTS subheading 3815.19.0000, which provides for “Reaction initiators, reaction accelerators and catalytic preparations, not elsewhere specified or included: Supported catalysts: Other," free of duty. While this subheading is a List 3 tariff good under Section 301, USTR granted an exclusion for goods entered under this subheading.
CBP liquidated the supported SCR catalysts under HTS subheading 8421.39.4000, which provides for “Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Filtering or purifying machinery and apparatus for gases: Other: Catalytic Converters” -- a List 1 good under Section 301 that doesn't have a USTR exclusion.
Mitsubishi's argument is that heading 3815 is the proper home for the supported SCR catalysts, particularly since it is a facilitating device and not a filtration or purification tool. The importer cited explanatory notes to heading 3815 to back its claim, since these notes say that the heading covers "preparations which initiate or accelerate certain chemical processes." The ENs even list supported catalysts as the type of product to be found under the heading, the complaint said. Therefore, the court should find that CBP improperly classified Mitsubishi's supported SCR catalysts, the importer said.