CLA-2-84:OT:RR:NC:N1:104
Lawrence M. Friedman
Barnes, Richardson & Colburn, LLP
303 East Wacker Drive
Suite 305
Chicago, IL 60601
RE: The tariff classification of a motorized solar tracker from Spain.
Dear Mr. Friedman:
In your letter dated January 29, 2020, you requested a tariff classification ruling on behalf of your client, Nclave Renewable S.L.
The item under consideration, the Nclave SP160 Solar Tracker, is a mechanical device that adjusts the orientation of solar panels based on the movement of the sun. The component materials of the Solar Tracker are electronic equipment; slew drive; motor or actuator; and a steel structural unit and related parts. No solar panels are included with the Solar Tracker at importation. All components are shipped unassembled for installation after importation into the United States.
You present two different shipping scenarios. In scenario one, the components that makeup the Solar Tracker will be consolidated at a single port of export (Spain) and shipped separately on multiple conveyances. In scenario two, the components that make up the Solar Tracker will be shipped separately on multiple conveyances from different ports of export in Spain, China, and possibly other locations. You state that 19 CFR §141.58 is applicable in both shipping scenarios.
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order. As stated in your submission, the mechanical tracker components are shipped unassembled. General Rule of Interpretation “GRI” 2(a) states as follows:
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.
Furthermore, the Explanatory Notes to the Harmonized Commodity Description and Coding System (ENs) represent the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper interpretation of these headings. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The EN for GRI 2(a) states in “Rule 2(a) (Articles presented unassembled or disassembled) (V)”:
The second part of Rule 2 (a), provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport.
The applicable subheading for the Nclave SP160 Solar Tracker, when shipped in accordance with 19 CFR §141.58 as described in scenario one, 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.
Scenario two does not meet the requirements set forth in 19 CFR §141.58 and the goods in each individual shipment will be subject to classification in accordance with their condition as imported. See Headquarters Ruling Number H234076 dated March 22, 2013.
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 Denise Hopkins at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division