NCS/ARS/CL/10469

You have applied for an Advance Ruling on the tariff classification of Industrial Gas Power Generating Sets (TCG 3016 V12 and V16 Series), imported together with their associated Balance of Plant (BoP) equipment in five (5) × 40-foot containers and one (1) × 20-foot container.

PRODUCT ANALYSIS

Based on the technical documentation submitted, the TCG 3016 V Series comprises industrial gas engines designed for high-efficiency power generation in industrial, municipal, and distributed energy applications. The generating sets are intended to provide electricity for critical infrastructure, industrial facilities, large building complexes, and district heating systems.

The submitted documentation identifies two configurations:

1. TCG 3016 V12 Series: An electrical generating set with a rated electrical output of 520 kWe.
2. TCG 3016 V16 Series: An electrical generating set with a rated electrical output of 800 kWe.

Both generating sets are designed to operate at a frequency of 50 Hz. They are supplied with standard accessories and associated Balance of Plant equipment required for their installation, operation, and integration into the power generation system.

The technical specifications further indicate that both engine configurations have a bore of 132 mm, a stroke of 160 mm, and a mean piston speed of 8.0 m/s. A bore of 132 mm and a stroke of 160 mm means the engine has a cylinder diameter of 132 mm and a piston travel distance of 160 mm from the bottom to the top of its movement. The V12 and V16 configurations have different rated electrical outputs, corresponding to their respective engine configurations.

The generating sets are designed to operate on natural gas or biogas, providing flexibility in fuel selection for industrial and distributed electricity generation.

The associated Balance of Plant equipment (BoP) is supplied to support the operation of the generating sets. BoP equipment encompasses all supporting electrical, mechanical, civil, and control systems needed to operate a power facility, excluding the main power-generating unit itself (such as turbines, engines, or solar/battery blocks).

TARIFF CLASSIFICATION

Based on the foregoing analysis, the Explanatory Notes to Chapter 85, under GENERAL, item (A) THE SCOPE AND STRUCTURE OF THE CHAPTER, it states that 

Chapter 85 cover machines and apparatus for the production, transformation, or storage of electricity, including generators and transformers of headings 85.01 to 85.04, as well as primary cells of heading 85.06 and electric accumulators of heading 85.07.

Accordingly, the TCG 3016 V12 and V16 Series Industrial Gas Power Generating Sets are appropriately classified under tariff heading 85.02, which covers electric generating sets and rotary converters.

More specifically, the generating sets fall under tariff subheading 8502.39.20.00 – Other generating sets: Gas-powered, at 5% rate of duty and 0% VAT in accordance with ECOWAS Common External Tariff (CET) 2022–2027.

LEGAL JUSTIFICATION

• GIR 1 & 6
• Explanatory Note to Chapter 85 General Item (A) - (SCOPE AND STRUCTURE OF THE CHAPTER)