CLA-2-:OT:RR:NC:N3:414
Mr. Jack L. Coppock
Attorney in Fact
Packair Customs Brokers, Inc.
5510 W. 104th Street
Los Angeles, CA 90045
RE: The tariff classification of a segment of a primary mirror for a telescope from Germany
Dear Mr. Coppock:
In your letter dated March 3, 2014 you requested a tariff classification ruling on behalf of CCAT Observatory, Inc.
The item is a pre-production carbon reinforced plastic segment for the primary mirror of a 30-meter telescope for submilimeter wavelength astronomy. The complete primary mirror is approximately the size of 1/3 of a football field and is made up of 162 segments situated in rings.
The applicable subheading for the primary mirror segment for the telescope will be 9005.90.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Binoculars, monoculars, other optical telescopes, and mountings therefor; other astronomical instruments and mountings therefor, but not including instruments for radio-astronomy; parts and accessories: Parts and accessories (including mountings): Other.” The rate of duty will be 8 percent ad valorem.
In your letter, you also requested eligibility under the prototypes provision of subheading 9817.85.01, HTSUS, which provides for "Prototypes to be used exclusively for development, testing, product evaluation, or quality control purposes." You stated that the segment being imported is being sent to California Institute of Technology for testing and evaluation purposes only and will not be used in the final telescope.
Note 7 in Subchapter XVII of Chapter 98 defines prototypes for the purposes of HTSUS subheading 9817.85.01 and sets forth certain conditions and limitations governing classification in the subheading. This Note provides:
For purposes of this subchapter, including heading 9817.85.01, the term "prototypes" means originals or models of articles that –
are either in the pre-production, production, or postproduction stage and are to be used exclusively for development, testing, product evaluation, or quality control purposes; and in the case of originals or models of articles that are either in the production or postproduction stage, are associated with a design change from current production (including a refinement, advancement, improvement, development, or quality control in either the product itself or the means for producing the product).
You stated that the segment will be tested to confirm that it is capable of performing to the required specifications prior finalizing the design. The segment is for laboratory testing only and will not be used in any telescope. You have also stated that in accordance with subparagraph (b)(ii) of Note 7 the segment will never be sold but will be retained by Caltech in their laboratory for reference purposes and once no longer needed may be kept for long term aging analysis, destroyed or put on public display.
In addition, eligibility for prototype treatment also requires that the item not be subject to any of the restrictions in subparagraph (c) of Note 7, i.e. quantitative restrictions, antidumping or countervailing duty orders.
Based on the information provided, we find that the importation of the pre-production carbon reinforced plastic segment for the primary mirror of a telescope qualifies for duty free treatment as a prototype under subheading 9817.85.01, provided that all the conditions delineated in U.S. Note 7, Chapter 98, Subchapter XVII, Harmonized Tariff Schedule of the United States, (HTSUS) are satisfied. Pursuant to Section XXII, Subchapter XVII, U.S. Note 7(a), (b) and (c), the applicable subheading for the subject merchandise will be 9817.85.01, HTSUS, which provides for "Prototypes to be used exclusively for development, testing, product evaluation, or quality control purposes." The rate of duty will be free.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
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 Barbara Kiefer at (646) 733-3019.
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division