CLA-2-90:OT:RR:NC:N1:105
John Strough
Mohawk Global Logistics Corp.
123 Air Cargo Road
North Syracuse, NY 13212
RE: The tariff classification of an enclosure for a tank gauging and leak detection system from China
Dear Mr. Strough:
In your letter dated November 22, 2017, on behalf of Mardek LLC, you requested a tariff classification ruling.
The product at issue is described as a bottom box enclosure for the Proteus Automatic Tank Gauging and Leak Detection System. The enclosure is constructed of steel and is specially designed to house the components of the Proteus tank monitoring system. Pegs within the enclosure accommodate the system’s internal components, while specially placed holes facilitate the connection of power and sensor cables and the mounting of the complete unit. Per the information provided, the complete Proteus system is capable of monitoring product levels, water levels, temperature leaks, etc., in up to 16 tanks simultaneously. The Proteus receives and stores the data collected from sensors within each tank. A 7-inch touchscreen graphic display on the face of the Proteus enables a user to access real-time and historical measurement information.
In your submission you suggest classification of the bottom box enclosure for the Proteus in subheading 9032.90, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts and accessories of automatic regulating or controlling instruments and apparatus. Based on the information provided, the complete Proteus system would not be considered an instrument or apparatus of heading 9032 in that it does not meet the terms of Note 7 to Chapter 90 (which describes the types of products that are classified in heading 9032). As the complete Proteus system is not an apparatus of heading 9032, the enclosure at issue could not be considered a part or accessory of that heading.
In addition to not meeting the specific terms of Note 7 to Chapter 90, the complete Proteus system does not appear to perform any controlling function whatsoever. The Proteus collects and displays measurement data collected from numerous sensors placed in tanks, and can even sound an alert if certain variables (e.g. the amount of water in a tank or the temperature level) exceeds predetermined variables. However, the Proteus does not take any action in response to an alert, such as sending a command to open or close a valve in a tank. Instead, the Proteus passively monitors the status of the tanks to which it is connected, and collects measurement data that can be reviewed by a user as needed. In this respect the Proteus serves a function similar to that of the data recorders discussed in Headquarters Ruling Number H126636, dated June 15, 2015. The data recorders in that ruling were found to be classified in subheading 9031.80, HTSUS, which provides for “other” measuring and checking instruments, appliances, and machines.
The complete Proteus system would be classified in subheading 9031.80. As the bottom box enclosure at issue is solely suitable for use as a part of the complete Proteus system and is not excluded from classification in heading 9031 by Notes 1 or 2 to Chapter 90, or by Additional U.S. Rule of Interpretation 1(c), it would be properly classified in subheading 9031.90.
The applicable subheading for the Proteus bottom box enclosure will be 9031.90.9195, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: Parts and accessories: Other: Other: Other: Other. 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 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 Evan Conceicao at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division