CLA-2-85:OT:RR:NC:N2:209

George R. Tuttle, III
Tuttle Law Offices
1100 Larkspur Landing Circle, Suite 385
Larkspur, CA 94939

RE: The tariff classification of network expansion devices from China

Dear Mr. Tuttle:

In your letter dated May 23, 2019, you requested a tariff classification ruling on behalf of your client, Netgear Inc.

The item concerned is referred to as the Powerline 1000 – PL1000. The Powerline 1000 – PL1000 is a network expansion/extension device which is comprised of two separate units. There is a base unit and a remote unit. The base unit connects to a user’s network router via an Ethernet cable. Then the unit is plugged into a household electrical outlet. The remote unit connects to a user’s end use device and is plugged into a different household electrical outlet.

The function of the item concerned is to route data through a home’s internal power lines. By routing data through the existing home wiring system the network coverage can be extended or expanded to areas that may be resistant to a wireless connection or where it may be difficult to run new cable.

You have proposed classification of the item concerned within subheading 8517.62.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “…Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other.” Based upon the function of the item(s) concerned, it is the opinion of this office that the routing of network data, through a power line system, is a function described more specifically by a different subheading within heading 8517, HTSUS. Similar merchandise has been ruled upon by CBP in N300884, which found that devices used to route data through a power line system, are classified as a type of routing device within subheading 8517.62.0020, HTSUS, as such classification within subheading 8517.60.0090, HTSUS, would be inapplicable.

The applicable subheading for the Powerline 1000 – PL1000 will be 8517.62.0020, HTSUS, which provides for “Telephone sets…; other apparatus for the transmission or reception of voice, images or other data…: Other apparatus for transmission or reception…: Machines for the reception, conversion, and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Switching and routing apparatus.” The general rate of duty will be Free.

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). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). 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 8517.62.00, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.04, in addition to subheading 8517.62.0020, 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 Steven Pollichino at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division