CIT Classifies Fuel-Cell Powered Machinery as Electric, Not Mechanical
The Court of International Trade on Dec. 2 ruled two types of fuel-cell powered dispensers for public restrooms should be classified in the HTS as electrical machinery (here). Technical Concepts, which is now owned by Rubbermaid, imported TCell fragrance dispensers and SaniCell toilet cleaner dispensers. It argued the hygiene equipment should be classified as machinery in chapter 84 instead of electrical machinery under chapter 85, because it neither takes in nor puts out electricity. But CIT affirmed CBP’s reliquidation of the dispensers as electrical machinery because, through their fuel cells, they “depend on electricity” to operate.
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Rubbermaid’s predecessor entered the merchandise in 2007 and 2008. Each is operated by a fuel cell that uses an electrochemical reaction to create hydrogen. Once enough hydrogen builds up, it pushes out liquid fragrance or cleaner. CBP classified the parts separately as plastic housings under heading 3926 and fragrance and cleaner refills under heading 3307. CBP rethought its stance in 2009, reliquidating entries entirely under subheading 8543.90.88 as parts of “other electrical machinery” not elsewhere specified, dutiable at 2.5%. Rubbermaid protested, arguing the products were instead correctly classified under subheading 8424.90.90 as mechanical appliances for dispersing liquids, which enters duty free.
The court threw out Rubbermaid’s classification, finding neither the TCell nor SaniCell “disperse” liquids. To “disperse” means to scatter a liquid in different directions, but both of Rubbermaid’s products drip the liquid onto a single point: the cleaner into the water in a toilet, and the fragrance into a sponge for evaporation into the air, said CIT. The products are machines classifiable in either chapter 84 or 85, but aren’t specifically identified by a heading in either chapter. That left classification in either heading 8479 for machines and mechanical appliances not elsewhere specified, or heading 8543 as electrical machines not elsewhere specified.
CIT noted that the Explanatory note to heading 8543 says it includes certain electrical goods, provided that the "mechanical features are subsidiary to the electrical function.” It also referenced the Explanatory Note to chapter 85, which includes articles that depend “on the properties or effects of electricity.” Finding the TCell and SaniCell to be electric rather than mechanical, CIT affirmed CBP’s classification as other electrical machinery under subheading 8543.90.88. Although neither product needs an outside electrical source to function, they include no important moving parts, and work by completing a circuit in the fuel cell to transfer electrons and create hydrogen, said CIT.
(Rubbermaid Commercial Prods., LLC v. U.S., Slip Op. 14-139, #10-00116 dated 12/02/14, Judge Barnett)
(Attorneys: Thomas O’Donnell of Clark Hill for plaintiff Rubbermaid Commercial Products, LLC; Stuart Delery for defendant U.S. government)