NCS/ARS/CL/10438

You have applied for the tariff classification of the following Atlas Copco spare parts and maintenance kits, imported in boxes and pallet boxes:

1. Thermostat Kit;
2. Air Filters Kit;
3. Oil Filter Kit;
4. Oil Separator/Minimum Pressure Valve (MPV) Kit;
5. OSV-CV (Oil Stop Valve/Check Valve) Kit;
6. NRV (Non-Return Valve) Kit – Low Pressure.

According to documentation submitted, the products are maintenance and replacement components designed for use principally with the Atlas Copco Oil-injected compressors.

1. THERMOSTAT KIT

The Thermostat Kit comprises principally a 75°C thermostatic valve, together with sealing and installation components, including Thermostatic valve, 75°C; O-ring 34 × 1.5; O-ring 35.1 × 1.6; O-ring 37 × 2.5; 

The thermostatic valve is designed to regulate the temperature of the compressor oil by controlling the flow of oil through the oil-cooling circuit. The O-rings serve as sealing elements between the valve and its housing and do not perform the principal function of the kit.

TARIFF CLASSIFICATION

Based on the foregoing description and analysis, the thermostatic valve constitutes the principal and functional component of the Thermostat Kit. It performs the essential function of regulating the temperature of the system by controlling the flow of the relevant fluid. Accordingly, the thermostatic valve imparts the essential character to the kit.

Heading 84.81 covers:

“Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves.”

Furthermore, paragraph 3 of the Explanatory Notes (EN) to Heading 84.81 specifically provides for valves incorporating thermostatic elements. In addition, paragraph 8 of the Explanatory Notes states that:

“Taps, cocks, valves, etc., remain classified under heading 84.81 even if specialized for use on a particular machine or apparatus...”

Consequently, the Thermostat Kit is appropriately classified under subheading 8481.80.00.00 – Other appliances, at 10% rate of duty and 0% VAT, in line with ECOWAS Common External Tariff (CET), 2022–2027, GIR 1 and 6, the relevant provisions of the Explanatory Notes to Heading 84.81.

2. AIR FILTERS KIT

The Air Filters Kit consists of filtration elements designed to remove dust, dirt and other particulate contaminants from air entering the compressor/engine system.

The kit comprises:

(a) Cylindrical Engine Air Filter

A cylindrical, pleated filter element fitted with end-cap components. The pleated filter medium provides an enlarged filtration surface for the removal of dust and other particulate matter from incoming air.

(b) Square Air Filters

Two square filter panels incorporating a framed filtration medium and protective grille/slated surfaces. These elements perform the same essential function of filtering airborne contaminants before the air enters the equipment.

TARIFF CLASSIFICATION

Part (II) of the Explanatory Notes to Section XVI, refers to parts; it generally provides that parts suitable solely or principally for use with a particular machine or apparatus are classified with that machine. However, the same provisions state that filtering machinery and apparatus are “in all cases classified in their own appropriate heading even if specially designed to work as part of a specific machine.”

Therefore, Filtering or purifying machinery and apparatus are specifically provided for under Heading 84.21, which covers:

“Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases.”

Accordingly, the air filters kit in view is appropriately classified under tariff heading 8421.39.90.00 – Filtering or purifying machinery and apparatus for gases: Other – Other at 5% Rate of duty and 0% in line with ECOWAS Common External Tariff (CET), 2022–2027, GIR 1 and 6, Explanatory Notes to Heading 84.21 and Section XVI.

3. OIL FILTER KIT

The Oil Filter Kit comprises: Oil filter; O-ring 32.15 × 3.53; and O-ring 20 × 2

The oil filter is designed to remove contaminants, metallic particles, deposits and other foreign matter from the compressor oil before the oil is recirculated through the compressor's lubrication system. The O-rings provide the necessary sealing of the filter assembly.

TARIFF CLASSIFICATION

The oil filter performs the specific function of filtering oil and is therefore covered by Heading 84.21, which includes:

“Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases.”

Based on documentation, the oil filter kit is designed solely for lubrication oil filter for Atlas Copco oil compressor and is not intended for an internal combustion engine. 

Accordingly, the oil filter kit is properly classified in tariff subheading 8421.29.00.00 – Filtering or purifying machinery and apparatus for liquids: Other, at 5% rate of duty and 0% VAT in accordance with ECOWAS CET 2022–2027, GIR 1 and 6 and the relevant Explanatory Notes to Heading 84.21.

4. OIL SEPARATOR / MINIMUM PRESSURE VALVE (MPV) KIT

The Minimum Pressure Valve (MPV) Kit is a maintenance kit for the Minimum Pressure Valve assembly used in an oil-injected screw compressor.

The kit comprises components including O-ring 106 × 3; Washer 30.5; O-ring 69.5 × 3; Springs; O-ring 40 × 2; Circlips; and Tube of grease.

The Minimum Pressure Valve maintains the required minimum pressure within the compressor's oil/air separator vessel and associated circuit. It assists in maintaining proper oil circulation and separation and prevents excessive pressure loss during compressor operation.

The MPV constitutes the principal functional component of the kit. The accompanying O-rings, washer, springs, circlips and grease are ancillary components necessary for the installation, sealing and servicing of the valve assembly.

TARIFF CLASSIFICATION

Heading 84.81 covers:

“Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves.”

Subheading Note 3 to Chapter 84 provides that, “...valves used specifically in the transmission of fluid power in hydraulic or pneumatic systems, where the energy source is supplied in the form of pressurised fluids, are termed “valves for oleohydraulic or pneumatic transmissions”, that these valves may be of any type (for example, pressure-reducing type, check type).

The MPV kit is specifically designed to regulate and maintain pressure in the pressurised air/oil system of the compressor and therefore falls within the scope of subheading 8481.20.00.00 – Valves for oleohydraulic or pneumatic transmissions at 5% Rate of duty and 0%VAT in accordance with ECOWAS CET 2022–2027, GIR 1 and 6, Subheading Note 3 to Chapter 84 and the Explanatory Notes to Heading 84.81.

5. OSV-CV KIT – OIL STOP VALVE / CHECK VALVE KIT

Product Description

The OSV-CV Kit is a replacement and maintenance kit for the oil stop/check valve assembly used in Atlas Copco oil-injected screw compressors.

The kit comprises components including Oil Stop Valve; Seal washer M14; Spring; Check valve C111-C106; Oil Stop Valve Spring; Gasket; Dowty seal washer ¼; and Dowty seal washer ½+.

The Oil Stop Valve controls the flow of oil within the compressor circuit, while the check valve permits flow in one direction and prevents reverse flow.

TARIFF CLASSIFICATION

Based on the above description, the kit comprises valve components and ancillary sealing and spring components. Its principal function is associated with the oil stop/check valve assembly.

The check valve is an identifiable functional valve component specifically provided for under Heading 84.81. The associated spring, washers, gasket and sealing components are ancillary to the valve assembly.

Accordingly, where the OSV-CV Kit is imported as a complete replacement kit for the oil stop/check valve assembly, the kit is appropriately classified under subheading 8481.30.00.00 – Check (nonreturn) valves at 10% Rate of duty, and 0% VAT in line with ECOWAS CET 2022–2027, GIR 1 and 6 and the Explanatory Notes to Heading 84.81

6. NRV KIT – LOW PRESSURE

The NRV Kit comprises Non-return valve; O-ring 12.3 × 2.4; and O-ring 3.3 × 2.4.

The Non-Return Valve (NRV) is designed to permit the passage of fluid or gas in one direction while preventing reverse flow. Within the compressor system, it ensures that the fluid follows the intended direction of flow and prevents backflow.

TARIFF CLASSIFICATION

The principal and functional component of the kit is the non-return valve. The O-rings are ancillary sealing components required for the proper installation and operation of the valve.

Heading 84.81 covers:

“Taps, cocks, valves and similar appliances for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves.”

The NRV is, by its nature and function, a check/non-return valve and therefore falls directly within this specific tariff provision. Accordingly, the NRV Kit is classified in tariff subheading 8481.30.00.00 – Check (nonreturn) valves, at 10% Rate of duty, and 0% VAT in line with ECOWAS CET 2022–2027, GIR 1 and 6 and the Explanatory Notes to Heading 84.81

 SUMMARY

Based on the product descriptions, technical functions and the applicable provisions of the Harmonized System, the proposed classifications are as follows:

LEGAL JUSTIFICATION

• GIR 1 & 6
• Explanatory Notes to Heading 84.81
• Part (II) of the Explanatory Notes to Section XVI
• Explanatory Notes to Heading 84.21