CLA-2-84:OT:RR:NC:N2:220
David Stuart
On Tap Consulting
3511 Clay Street
San Francisco, CA 94118
RE: The tariff classification of the Amber Life from China
Dear Mr. Stuart:
In your letter dated October 31, 2018 you requested a tariff classification ruling on behalf of your client, Latticework, Inc.
The merchandise under consideration is identified as the Amber Life which is described as a small cube-shaped Personal Hybrid Cloud device that is principally used as a network storage unit in a Redundant Array of Independent Disks (RAID) configuration. Depending on one of three model numbers, the Amber Life contains a 1.1-2.6 GHz processor, dual 1.0-4.0 TB hard disk drives, multiple USB ports, an integrated AC2600 Wi-Fi router, WAN/LAN ports, and a single HDMI output. The variations between models reflect the speed of the processor and the overall storage capacity.
In use, consumers install the Amber Life inside their home for the purpose of storing digital media from their personal digital devices such as cell phones, tablets, or cameras. As noted in your request, the Amber Life also contains Wi-Fi router functionality which provides connectivity to the device when consumers are in the local network. When consumers are outside of their local network, you state the LatticeNest Cloud software running on the Amber Life allows users to connect to the device and access files through the existing network’s router.
Note 3 to Section XVI states that machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component which performs the principal function. As noted above, the Amber Life is said to have two functions. The first is to provide network storage of digital files and allow controlled access to those files. The second function is to function as a router by providing Wi-Fi connectability to the network where the Amber Life resides. It is the opinion of this office that the principal function of the Amber Life is the network storage of files.
In your request you suggest the Amber Life is correctly classified as an automatic data processing (ADP) machine under 8471.50.0150, Harmonized Tariff Schedule of the United States (HTSUS). As the Amber Life is not the ADP machine itself but more accurately described as a storage unit for ADP, we disagree with the suggested classification. Furthermore, Customs and Border Protection has previously ruled on RAID network attached storage devices in NY N161101.
The applicable subheading for the Amber Life will be 8471.70.5065, HTSUS, which provides for "Automatic data processing machines and units thereof…Storage units: Magnetic disk drive units: Other: Other: Hard magnetic disk drive units." The 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). 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 8471.70.5065, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8471.70.5065, 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 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