CLA-2-84:OT:RR:NC:N1:104
Mr. Harry Clark
Orrick, Herrington & Sutcliffe LLP
1152 15th Street N.W.
Washington, DC 20005
RE: The tariff classification of Components of a Solar Tracker from China
Dear Mr. Clark::
In your letter dated October 19, 2018, om behalf of your client, NEXTracker Inc., you requested a tariff classification ruling.
The imported product called NX Tracker is a single axis solar tracker which tracks the sun’s movements through the day and generates electricity using crystalline solar photovoltaic (CSPV) modules attached to the tracker. The CSPV modules are not being imported and are provided by the customer. There are two alternative power sources for the NX Tracker which is used for rotational power and communication. They are 1) a small solar panel supplied by NEXTracker or 2) a hard-wired solution provided by the customer. These power sources do not deliver any of its power on to the electricity grid.
The components for the NX Tracker consists of 1) Mechanical torque tubes 2) Bearing housing assemblies 3) Module mounting rail assemblies 4) Slew gear mount 5) Slew gear assembly 6) SPC 7) SPC mount and 8) DC motor. You state in the ruling letter that these components are being imported in a single bill of lading but packaged separately from one another and in bulk form. The NX Tracker will be imported disassembled and in an incomplete manner. The number of each imported component corresponds to the number necessary to assemble a NX Tracker for the customer. The only components of a completed NX Tracker not being imported consists of the piers, fasteners and dampers. The network controller unit and weather station will be imported later since they are not necessary for the operation of the NX Tracker to rotate. The CSPV panels installed on top of the NX Tracker will be installed by the customers and are not part of the importation or a product offered by NEXTracker.
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes. GRI 2(a) extends the scope of the HTSUS headings to include unfinished parts, provided the unfinished parts have the essential character of the finished parts. GRI 2(a) further states that, “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled”. Under GRI 2(a), the factor or factors which determine essential character will vary with the merchandise. It may, for example, be determined by the nature of a component or components, their bulk, quantity, weight or value, or the role of a component or components in relation to the use of the good. It is the opinion of this office that the solar tracker components in their imported condition possess the essential character of a complete NX Tracker.
In your letter, you propose classifying the NX Tracker under subheading 8479.89.6500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter, parts thereof: Other machines and mechanical appliances: Other: Electromechanical appliances with self-contained electric motor: Other”. As justification for your position, you state that the NX Tracker, which incorporates a self-contained motor, is electromechanically operated. This office acknowledges the validity of your statement. However, subheading 8479.89.6500, HTSUS, does not encompass every assembly which includes an electric motor. The NX Tracker is not similar to the products listed in the tariff as being classifiable as “Electromechanical appliances with self-contained electric motor”. Thus, in this office’s opinion, classification in subheading 8479.89.6500, HTSUS, would not be appropriate.
The applicable subheading for the Componnets of a Solar Tracker will be 8479.89.9499, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Other: Other: Other”. The rate of duty will be 2.5 percent ad valorem.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02,
9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8479.89.9499, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8479.89.9499, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Patricia O’Donnell at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division