HQ 957245

APRIL 10, 1995

CLA-2 R:C:M 957245 JAS

CATEGORY: Classification

TARIFF NO.: 8415.90.80

Mr. Gurhan Demirkan
The EDGE International, U.S.A.
4333 Charles Crossing Drive
White Plains, MD 20695

RE: NY 898934 Revoked; Parts of Structures, Heading 7308; Panels
for Air Conditioners, Rectangular Panels of Galvanized and
Stainless Steel Insulated With Polyurethane or Rock Wool;
Section XVI, Note 2

Dear Mr. Demirkan:

In a ruling to you, dated June 22, 1994, NY 898934, the Area
Director of Customs, New York Seaport, held that certain panels
for air conditioning machines were classifiable in subheading
7308.90.90, Harmonized Tariff Schedule of the United States
(HTSUS), as plates, rods, angles, shapes, sections, tubes and the
like, prepared for use in structures, of iron or steel.

Pursuant to section 625, Tariff Act of 1930 (19 U.S.C.
1625), as amended by section 623 of Title VI (Customs
Modernization) of the North American Free Trade Agreement
Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993),
notice of the proposed revocation of NY 898934 was published on
March 8, 1995, in the Customs Bulletin, Volume 29, Number 10.

FACTS:

The merchandise in question is panels, sometimes referred to
as casings or modules, for air conditioning machines. They
attach to each other by nuts and bolts and serve to enclose the
motors, coils and other working parts of the air conditioners.
The panels are rectangular shaped, come in different sizes, and
consist of inner and outer skins, of either galvanized or
stainless steel, insulated either with polyurethane or rock wool.
 - 2 -

The provisions under consideration are as follows:

7308 Structures and parts of structures***
plates, rods, angles, shapes, sections,
tubes and the like, prepared for use in
structures, of iron or steel:

7308.90 Other:

Other:

7308.90.95 Other...5.1 percent (Free
under GSP)

* * * *

8415 Air conditioning machines, comprising a
motor-driven fan and elements for changing
the temperature and humidity, including
those machines in which the humidity
cannot be separately regulated; parts
thereof:

8415.90 Parts:

8415.90.80 Other...2 percent (Free under GSP)

ISSUE:

Whether panels for air conditioning machines, as described,
are parts solely or principally used with air conditioning
machines.

LAW AND ANALYSIS:

Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) in accordance with the
General Rules of Interpretation (GRIs). GRI 1 states in part
that for legal purposes, classification shall be determined
according to the terms of the headings and any relative section
or chapter notes, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6.

The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the Customs Cooperation
Council's official interpretation of the Harmonized system.
While not legally binding on the contracting parties, and
therefore not dispositive, the ENs provide a commentary on the
scope of each heading of the Harmonized System and are thus
useful in ascertaining the classification of merchandise under - 3 -

the System. Customs believes the notes should always be
consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23,
1989).

Heading 7308 encompasses complete or incomplete metal
structures and parts of such structures. Relevant ENs at p.
1020, indicate that heading 7308 covers parts such as flat-rolled
products, "wide flats" including so-called universal plates,
strip, rods, angles, shapes, sections and tubes, which have been
prepared (e.g., drilled, bent or notched) for use in structures.
The panels in issue are composite goods consisting of steel
components and the heat insulating agents polyurethane or rock
wool. They are fabricated articles that do not conform to the
description for parts. The ENs continue at p. 1021 by excluding
from heading 7308 constructions clearly identifiable as machinery
parts. These are referred to Section XVI. We conclude that the
panels in issue are not goods of heading 7308.

Goods that are identifiable as parts of machines or
apparatus of chapters 84 and 85 are to be classifiable according
to Section XVI, Note 2, subject to the exceptions stated in that
note and to the extent the note is applicable. Parts which are
goods included in any heading of chapter 84 or 85 are in all
cases to be classified in their respective headings. Note 2(a).
The panels in issue are not classifiable according to this note.
Other parts suitable for use solely or principally with a
particular machine or with a number of machines of the same
heading, are to be classified with the machines of that kind.
Note 2(b). The instant panels qualify as parts for tariff
purposes, and are principally, if not solely used with air
conditioning machines of heading 8415.

HOLDING:

Under the authority of GRI 1, the panels for air
conditioning machines are provided for in heading 8415. They are
classifiable in subheading 8415.90.80, HTSUS. Goods so
classified, from Turkey, are eligible for duty-free entry under
the Generalized System of Preferences (GSP), upon compliance with
the law and applicable Customs Regulations.

EFFECT ON OTHER RULINGS:

NY 898934, dated June 22, 1994, is revoked. In accordance
with section 625 this ruling will become effective 60 days after
its publication in the Customs Bulletin. Publication of rulings
or decisions pursuant to section 625 does not constitute a change - 4 -

of practice or position in accordance with section 177.10(c)(1),
Customs Regulations (19 CFR 177.10(c)(1)).


Sincerely,


John Durant, Director
Commercial Rulings Division