US Renews Cross-Motion for Judgment, Raises New Classification for Hydrogen Fuel Cell Generator Components
The U.S. renewed a cross-motion for judgment June 6 regarding the classification of importer HyAxiom’s hydrogen fuel cell generator components, saying the importer’s product was “a multi-functional machine” classifiable under Harmonized Tariff Schedule heading 8479. The government’s initial motion was dismissed by Court of International Trade Judge Timothy Stanceu in August 2024 (see 2408290019) (HyAxiom v. United States, CIT # 21-00057).
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The product in question is HyAxoim’s PC50 supermodule -- a number of components and systems that are used in manufacturing the importer’s PureCell Model 400 hydrogen fuel-cell powerplant, “which generates energy for customer use in equal parts electricity and heat.”
The U.S. argued in its initial cross-motion for judgment that the products should have been classified as parts used with electric motors or generators under heading 8503, but Stanceu said that would only work if the products didn’t fall under HyAxiom’s preferred heading, 8405. He held that he couldn’t reach that conclusion without a factual determination as to whether the PC50’s main function is gas generation. A “principal function” analysis of the PC50s was required, he explained, but Commerce hadn’t conducted one and HyAxiom’s was flawed.
Now, almost a year later, the parties have submitted a joint statement of material facts and have both filed renewed motions for judgment that make arguments regarding the PC50s’ principal function. The government also switched up its argument, instead pushing for classification under heading 8479, not heading 8503.
The U.S. said that PC50s aren’t just gas generators -- they perform many functions. In particular, they condense steam into water and provide cooling water to other components; they collect heat generated by other components and make it available to users of the overall Model 400 generator system; they support “the thermal balance and management of the Model 400”; and they provide ventilation and thermal stability to the Model 400s.
These aren’t just auxiliary functions, the government argued. They are “interconnected” in a way that is “necessary” for the overall generators to operate, it said. For this reason, the PC50s don’t have a principal function, it said.
Because of this, it said, the court must look to Note 7 of the Explanatory Notes for HTS Chapter 84 to make its decision. Note 7 instructs that machines without a principal purpose should be classified under heading 8479.