CLA-2-90:OT:RR:NC:N3:135
Mr. John Coccimiglio
VoCare, Inc.
PO Box 207
Zionsville, IN 46077
RE: The tariff classification of Vitals360® from China
Dear Mr. Coccimiglio:
In your letter dated March 28, 2019, you requested a tariff classification ruling. Additional information was provided via email on April 3 and April 8, 2019.
Vitals360® is a smartphone-sized device measuring blood pressure, electrocardiogram (EKG or ECG), temperature, blood glucose, blood oxygen, and weight. The front panel of the device consists of a touch screen, two ECG pads, a front facing camera, a speaker, and three buttons. The back panel contains a hands-free speaker, a blood pressure female port, a rear facing camera, non-contact thermometer, and a pulse O2 finger door. The online user manual shows on the sides there are a Micro USB port for power charging, a SIM card slot, a blood glucose strip receiver, and a power button. Based on your website, the device is equipped with WiFi, Bluetooth, and 4G LTE, acts as its own stand-alone wireless hub and automatically uploads data via 4G LTE cellular and WiFi connectivity. You claim that the device is intended for remote patient monitoring along with chronic care management only. Vital readings are taken by the patient daily and data is uploaded into your cloud database for remote monitoring of patient's vital signals and other purposes. Patients can use the Vitals360’s® video feature to conduct telehealth visits on the device.
The applicable subheading for the Vitals360® will be 9018.19.5500, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Instruments and appliances used in medical, surgical, dental or veterinary sciences …: Electro-diagnostic apparatus (including apparatus for functional exploratory examination or for checking physiological parameters) …: Other: Other: Patient monitoring systems.” The general rate of duty will be free.
Effective July 6, 2018, the Office of the United States Trade Representative 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. For additional information see “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01 and classified in one of the subheadings enumerated in U.S. note 20(b) 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 subheading 9903.88.01.
Products of China classified under subheading 9018.19.5500, 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., 9903.88.01, in addition to subheading 9018.19.5500, 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.
In your letter, you also sought for the country of origin ruling. However, you did not provide enough information for us to determine the country of origin of the product. Your request for a country of origin ruling should include the following:
Provide a list of all the materials/components and the country of origin of each.
Provide a cost of materials/components and production in each country.
Provide the step by step manufacturing process in each country.
Where does the design and research of the Vitals360® occur? Is there software installed? If yes, what is the country of origin of the software? In what country is the software installed?
Describe the difficulty of the manufacturing process (e.g. assembly process) in each country. What is the manufacture processing time spent in each country? Does each manufacturing process require a trained technician? If yes, please explain.
In addition, you requested whether there was an applicable trade program or trade agreement. At this time, the United States does not have a trade program or trade agreement in force with China.
Although no request was made for marking, a review of the label design received indicated that it was not legally marked. A side panel of the label contains the US address and phone numbers of Vocare Inc., USA; the Chinese address of Vocare China Company; and the phrase “Product Designed in U.S.A.” Section 134.46, Customs Regulations (19 CFR 134.46), requires that in any case in which the words “United States,” or “American,” the letters “U.S.A.,” any variation of such words or letters, or the name of any city or locality in the United States, or the name of any foreign country or locality other than the country or in which the article was manufactured or produced, appears on an imported article or its container, there shall appear, legibly and permanently, in close proximity to such words, letters, or name, and in at least a comparable size, the name of the country of origin preceded by “Made in,” Product of,” or other words of similar meaning. In order to satisfy the close proximity requirement, the country of origin marking must generally appear on the same side(s) or surface(s) in which the name or locality or other than the actual country of origin appears.
We note that Customs has previously allowed the phrase "designed in" to be used in conjunction with country of origin information. In Headquarters Ruling Letter 734144 (dated July 5, 1991), Customs held that a label marked "Designed in U.S.A." with the words "Made in (Country of Origin)" in close proximity and in the same size and color as the words "Designed in U.S.A." satisfies the marking requirements of 19 U.S.C. 1304 and 19 CFR 134.46 so long as the words "Made in (Country of Origin)" are legible, conspicuous and permanent. In this case, we do not find the words "Made in (Country of Origin)" or words of similar meaning in close proximity and in the same size and color as the words "Product Designed in U.S.A." You may wish to discuss the matter of country of origin marking with the Customs import specialist at the proposed port of entry.
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 Fei Chen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division