CLA-2-85:OT:RR:NC:N4:112
Shawn Glover
UPS Trade Management Services, Inc.
2031 S. Centennial Ave.
Aiken, SC 29803
RE: The tariff classification of a fuel cell stack from China
Dear Ms. Glover:
In your letter dated June 9, 2016 you requested a tariff classification ruling on behalf of your client, UniEnergy Technologies, LLC.
The merchandise under consideration is referred to as a “stack”, which is a component of a fuel cell electrical generator. A single stack is described as an enclosure containing an electrode and plastic, copper, and graphite sheets sandwiched together to form a collection of cells. Each stack has an inlet and outlet for an electrolyte solution to be circulated across the arranged sheets. The device currently under review is comprised of two stacks fitted together to form an assembly containing the positive and negative electrodes where the stacks are separated by a proton exchange membrane (PEM). As imported, the stack assembly consists of the electricity producing components of an incomplete generator as the pumps, reservoirs, piping and any controllers are not subject to this request.
In use, the imported stack assembly is combined with pumps, reservoirs, and piping of electrolyte solution to form an electrical generator. The PEM allows protons to pass through from the anode to the cathode while releasing electrons which produce electricity. The amount of electricity generated by a stack is determined by the number of cells as well as the number of stacks, which are arranged in series. Although generator configurations may vary, you state the stack currently under review here is rated at 1,000 A and 40 kW. You cite the Explanatory Notes (ENs) and suggest 8501.32.6000, Harmonized Tariff Schedule of the United States (HTSUS) as an appropriate tariff classification for the instant stacks.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
GRI 2(a) states: 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 falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
While the subject fuel cell stack cannot function solely on its own and requires the pumps, electrolytic solutions, etc. to produce electricity, we find that the stack assembly provides the essential character of a fuel cell electrical generator and through application of GRI 2(a), should be classified as such. We therefore agree with your suggested classification
The applicable subheading for the fuel cell stack will be 8501.32.6000, HTSUS, which provides for: “Electric motors and generators: Other DC motors; DC generators: Of an output exceeding 750W but not exceeding 75 kW: Generators.” The general rate of duty will be 2% ad valorem.
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 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 Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division