CLA-2 OT:RR:CTF:EMAIN H306282 NVF
Port Director
Port of Long Beach
301 E. Ocean Blvd.
Long Beach, CA 90802
U.S. Customs and Border Protection
Attn: John Raynes, Import Specialist
RE: Application for Further Review of Protest No. 2704-19-104352; Classification of a Push-Pull Transformer
Dear Port Director:
This letter is in response to the Application for Further Review (“AFR”) of Protest No. 2704-19-104352, timely filed by counsel on behalf of MPS Industries, Inc. (“MPS”). The protest pertains to the classification and liquidation by U.S. Customs and Border Protection (“CBP”) of a push pull transformer under subheading 8504.31.40 of the Harmonized Tariff Schedule of the United States (“HTSUS”). In preparing this ruling, consideration was given to our conference with counsel and a representative of MPS, held on January 28, 2021. We also took into consideration the supplemental submission, dated February 17, 2021, provided by counsel.
FACTS:
The import at issue is a push-pull transformer, Model A6006. Push-pull type transformers are typically used in circuits that convert DC voltage into another value of DC voltage, as well as in circuits that convert the input voltage from DC electricity into AC. The transformer in this case was designed for assembly onto a power circuit board in a DC/AC inverter for automobiles. MPS states that the material fabrication of the transformer restricts its power handling capacity to 1kVA or less. A specification table provided by MPS indicates input and output for the instant transformer (i.e., model A6006).
MPS argues that the transformer is unrated and therefore should be classified under subheading 8504.31.20 as an unrated transformer.
ISSUE:
Whether the transformer is classified under subheading 8504.31.20 as an unrated transformer or under subheading 8504.31.40 as a transformer having a power handling capacity less than 1 kVA.
LAW AND ANALYSIS:
We observe as an initial matter that the matters protested are protestable under 19 U.S.C. § 1514(a)(2) as decisions on classification and amount of duties chargeable. The subject merchandise was entered by on July 25, 2018. CBP liquidated the entry on June 14, 2019. On September 3, 2019, MPS timely filed a protest and AFR, within 180 days of liquidation of the first entry. Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2) (B) (ii), (iii) (codified as amended at 19 U.S.C. § 1514(c) (3) (2006). Further review of the protest is properly accorded to protestant pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with a previous CBP decision concerning substantially similar merchandise.
Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (“GRIs”) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all classification purposes.
GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relevant section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
Because there is no disagreement that the transformer is classifiable under heading 8504, HTSUS, the instant matter is governed by GRI 6, which states that:
For legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. For the purposes of this rule, the relative section, chapter and subchapter notes also apply, unless the context otherwise requires.
Given that there is also no dispute that the instant transformers are properly classified under subheading 8504.31, the HTSUS provisions under consideration in this case are as follows:
8504 Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof:
Other transformers:
8504.31 Having a power handling capacity not exceeding 1kVA:
8504.31.20 Unrated.
* * *
Other:
8504.31.40 Having a power handling capacity less than 1kVA.
It is well established that transformers may not be classified as unrated if they are of a class or kind which are rated or are for use in power circuits where the capacity of a transformer must be known, even if it is not included on any commercial labels. HQ 951711 (May 29, 1992). In HQ 951711, CBP stated:
Customs has long held that transformers may not be regarded as unrated if they are of a class or kind which are rated or are for uses in power circuits where the capacities of the transformers must be known even if they are not included on any labels. Currently, signal transformers and current transformers (that work as circuit breakers or large power transformers) are the only types of transformers that have been found by Customs and the Courts to be unrated.
Thus, the only transformers that fall under the scope of the term “unrated” for classification purposes are signal transformers and current transformers (that work as circuit breakers or large power transformers). Id. and HQ 081407 (Nov. 23, 1990).
In this case, the transformer at issue is not a signal transformer, nor is it a current transformer that works as a circuit breaker or a large power transformer. Information provided in an A6006 Specification Table by MPS indicates that the transformer at issue has a power capacity of less than 1kVA. Additionally, because these transformers are used in automobiles, we find it unlikely that an automobile manufacturer would incorporate an electrical component like the subject merchandise without known values. MPS states that the specification table on record is from their customer. The specification table provides input and output values, therefore it follows that the customer is using them in a power circuit based on these known values. In light of the foregoing, we conclude that the transformers cannot be classified as unrated.
MPS argues that the transformer does not bear any labels reflecting a power rating and that “as a commercial matter” it is unrated. However, as discussed above, the lack of a label is not sufficient to render a transformer as unrated when its capacity is known. MPS next argues that the transformer is similar in construction to the transformers in NY H82710 (July 3, 2001), which CBP classified under subheading 8504.31.20, HTSUS. However, NY H82710 does not provide any physical features or detailed description of the transformers it classified. NY H82710 merely states that the transformers are described as push-pull transformers and are designed for use in various electrical equipment. Given the lack of detail in NY H82710, we cannot make any meaningful comparisons between the instant transformer and the transformers classified in NY H82710.
MPS also argues that in NY N104105 (May 12, 2010), CBP classified a transformer assembly with a power handling capacity of less than 1kVA as unrated. MPS asserts that NY N104105 indicates that a transformer with a known power capacity still can be classified as unrated when it lacks a specific power-handling rating. However, the merchandise at issue in NY N104105 is different from the instant transformer. The transformer assembly in NY N104105 consists of multiple coil assemblies (as compared to the single assembly in this case) and in addition to transforming voltage, also transfers an electrical signal from the primary winding to the secondary winding via induction. Additionally, the transformer assembly in NY N104105 is used in the manufacture of a linear variable differential transformer, which is not the same as an automobile power circuit. Therefore, NY N104105 does not apply in this case.
Finally, MPS asserts that in NY F81470 (Jan. 14, 2000), CBP classified a signal/pulse/drive transformer as unrated even though its power capacity was known. MPS appears to argue that classification as an unrated transformer depends solely on whether the transformer has a known power-handling rating. However, this argument overlooks the fundamental difference between the transformer in NY F81470 and the ones imported by MPS: the transformer in NY F81470 is a signal/pulse/drive transformer, which is one of the types of transformers recognized by CBP as unrated. HQ 951711. The signal/pulse/drive is classified as an unrated transformer by virtue of its function, and not based on whether the power-handling rating is known.
In light of the foregoing, we conclude that the push-pull transformer is classified under subheading 8504.31.40, HTSUS as a transformer having a power handling capacity less than 1 kVA.
HOLDING:
By application of GRIs 1 and 6, the push-pull transformer is classified under subheading 8504.31.40 which provides for, “Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: Other transformers: Having a power handling capacity not exceeding 1kVA: Other: Having a power handling capacity less than 1kVA.”
You are instructed to DENY the protest.
In accordance with Sections IV and VI of the CBP Protest/Petition Processing Handbook (HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the Protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision.
Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the Customs Rulings Online Search System (“CROSS”) at https://rulings.cbp.gov/, which can be found on the CBP website at http://www.cbp.gov and other methods of public distribution.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division