CLA-2-85:OT:RR:NC:N2:220
Glenn Manfrin
Perimeter Global Logistics
2800 Story Road West Suite 100
Irving, TX 75038
RE: The tariff classification of a network security appliance from China
Dear Mr. Manfrin:
In your letter dated November 12, 2018 you requested a tariff classification ruling on behalf of your client, Avast Inc.
The merchandise under consideration is identified as the Avast Network Appliance which is described as a digital security and privacy appliance that is connected to a home router as an intrusion detection and prevention system (IDPS). The subject appliance consists of an enclosure with a printed circuit board assembly which contains a System on Chip processor, 512 MB of memory, 4 GB eMMC storage, a single gigabit Ethernet port, a reset button, and a three color LED status indicator.
In use, the Avast Network Appliance is connected to a user’s home network router and provides digital security and privacy to the network by blocking malicious content and Botnets, detecting anomalies, and providing protection from malware or similar threats. The device is also a content filter/manager which enables users to limit screen time and unwanted content on certain connected devices. You state that the subject appliance does not operate as a local router or gateway but instead only functions as a local IDPS network filter and scanner to prevent unwanted threats from accessing locally connected devices, such as personal computers, smart phones, and tablets.
In your request you suggest the Avast Network Appliance is correctly classified under 8471.41.0150, Harmonized Tariff Schedule of the United States (HTSUS). In noting the similarity of functionality of the subject network security appliance to the machine that was considered in HQ H271470, we disagree with the suggested classification.
The applicable subheading for the Avast Network Appliance will be 8543.70.9960, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; Other machines and apparatus; …Other”. The rate of duty will be 2.6 percent ad valorem.
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 8543.70.9960, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8543.70.9960, HTSUS, listed above.
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