HQ 087074: Electric Generating Set; Gas Turbine and Electric Generator Imported Together

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                              HQ 087074

                              NOVEMBER 21 1991

   CLA-2:CO:R:C:M   087074 JAS

   CATEGORY:   Classification

   TARIFF NO.: 8502.30.0000; 8503.00.6060, HTSUSA

   Patrick D. Gill, Esq.
   Rode & Qualey
   295 Madison Avenue
   New York, N.Y. 10017

   RE:  Electric Generating Set; Gas Turbine and Electric
        Generator Imported Together

   Dear Mr. Gill:

        In your letter of February 15, 1990, as supplemented, on
   behalf of Siemens Power Corporation (formerly Utility Power
   Corporation), Bradenton, Florida, you inquire as to the tariff
   classification of a gas turbine and electric generator imported
   together from Germany.  Our ruling follows.

   FACTS:

        The machine in question is the Kraftwerk Union 60 Hz model
   V84 gas turbine-generator.  It is described as a single shaft
   (3600 rpm), single casing machine consisting of one 17-stage
   compressor and one four-stage turbine.  Both components will be
   imported in the same shipment.  Two large silo-type multi-
   burner combustion chambers suitable for burning natural gas,
   light or heavy oils, and fuel oils will be imported separately
   and flange-mounted to each side of the turbine.  The compressed
   air and fuel mixture from these chambers causes the turbine
   blades to turn, thus creating rotating mechanical energy, which
   the generator, by means of electromagnetic induction, converts
   to alternating current electrical energy.

       You state that the V84 is designed and uniquely matched as
   a functional unit whose sole purpose is to generate
   electricity.  It is a combination of a generator and its prime
   mover, the turbine, which are connected by coupling the shafts,
   designed and mounted together as one unit.  The units are rated
   almost one-to-one in terms of kW output between turbine and
   generator.  Moreover, the turbine and generator are connected
   by piping which provides lubrication to the thrust and journal
   bearings, fuel, and water for emission control.  The
                                - 2 -

   lubrication system includes one common operating pump, filter,
   and cooling system.  Both the turbine and generator are
   controlled by a common control system that receives electronic
   signals from both units to compute and govern the actual
   output.

        For these reasons, you maintain the turbine-generator
   combination is classifiable under the provision for other
   generating sets, in subheading 8502.30.0000, Harmonized Tariff
   Schedule of the United States Annotated (HTSUSA).  You maintain
   the exhaust stack would be classifiable in subheading  8503.00.
   6060, HTSUSA, a provision for parts solely or principally used
   with a machine of heading 8502.

   ISSUE:

        Whether the turbine and generator imported together are
   classifiable together as a set, or are separately classifiable.

   LAW AND ANALYSIS:

        Merchandise is classifiable under the HTSUSA in accordance
   with the General Rules of Interpretation (GRIs).  GRI 1,
   HTSUSA, 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 otherwise require, according to GRIs 2
   through 6.

        The Explanatory Notes (ENs) constitute the Customs
   Cooperation Council's official interpretation of the Harmonized
   System.  While not legally binding, they provide a commentary
   on the scope of each heading of the Harmonized System, and are
   thus useful in ascertaining classification under the System.
   Customs believes they should always be consulted.  See T.D. 89-
   80.

        Relevant ENs indicate that for purposes of heading 8502
   the expression "generating sets" applies to the combination of
   an electric generator and any prime mover other than an
   electric motor and that generating sets consisting of the
   generator and its prime mover, which are mounted (or designed
   to be mounted) together as one unit or on a common base (see
   the General Explanatory Note to Section XVI), are classified
   [in heading 85.02] provided they are presented together.

        Turbines and generators of this type are stand-alone
   machines with their shafts being typically connected either by
   means of a gear box or a flange.  The instant units are
                                - 3 -

   connected by means of couplings on their respective shafts
   which are bolted together to form the single shaft referred to
   in the literature.  The coupling between turbine and generator
   is a precision mechanical fit designed to insure that both
   shafts rotate at identical speeds.  The design of these units
   is such that in addition to shaft rotation, their vibrational
   behavior, bearing loads, etc., must be matched.  Moreover, the
   generator, in this case, is used as a motor to start the
   turbine.  The gas turbine cannot be started or operated by any
   means other than its matching generator.

        It has been suggested that the cited General Explanatory
   Note may support the proposition that there must be substantial
   physical integration of the turbine and generator for these
   units to constitute a set for tariff purposes, and that a mere
   coupling of the shafts is insufficient in this regard.  In our
   opinion, the note is inconclusive in imposing this requirement
   on the turbine and generator in issue here and, in any event,
   there is substantially more integration of these units than a
   mere coupling of the shafts.  This note, therefore, should not
   be interpreted in such a way as to contravene the otherwise
   clear scope of heading 8502.

        Because the units in issue here are commonly bought and
   sold together, are commercially regarded as generating sets,
   and possess design features that indicate they will be
   permanently attached to one another, we conclude that they are
   designed to be mounted together as one unit for purposes of
   heading 8502.

   HOLDING:

        Under the authority of GRI 1, the turbine and generator
   which comprise the Kraftwerk Union model V84 are provided for
   in heading 8502.  Actual classification is under the provision
   for other generating sets in subheading 8502.30.0000, HTSUSA.
   The rate of duty is 3 percent ad valorem.


                               Sincerely,



                               John Durant, Director
                               Commercial Rulings Division