Tariff classification of plate heat exchangers turned on principal use; multi-industry applications kept them in the residuary entry.

Imported plate heat exchangers were required to be shown as designed mainly or principally for milk processing to fall within the milk-treatment sub-heading. The catalogues and pamphlets showed multiple uses across cooling, heating, food and industrial applications, so they were not confined to dairies or milk treatment. The importer's intention to supply the goods to dairies was insufficient to determine classification. The goods were therefore correctly placed in the residuary part of Entry 84.17(2) and not under Entry 84.17(1).

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Issues: Whether the imported plate heat exchangers were classifiable under Entry 84.17(1) as machinery not elsewhere specified or under Entry 84.17(2) as machinery and equipment for food and drink other than those used for treating milk.

Analysis: The tariff entry required the importer to show that the goods were designed mainly or principally for treatment or processing of milk. The catalogues and pamphlets produced showed that the goods had multiple uses in different industries, including cooling, heating and other food and industrial applications, and were not confined to milk processing. The fact that the importer intended to supply them to dairies did not by itself establish classification under the milk-processing sub-heading.

Conclusion: The goods were correctly classified under the residuary part of Entry 84.17(2) and not under Entry 84.17(1); the finding was against the assessee.

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