CLA-2-85:OT:RR:NC:N2:220
Richard Bernard
ZT Systems
333 Meadowlands Parkway 2nd floor
Secaucus, NJ 07094
RE: The tariff classification of a power supply unit from China
Dear Mr. Bernard:
In your letter dated April 25, 2019 you requested a tariff classification ruling.
The merchandise under consideration is identified as the Power Supply Unit (PSU), ZT Part # PS-2302-1A1U-LF, which is described as a rack mountable PSU that supplies both main output DC power as well as standby DC power. Based in the information provided, the PSU provides 2.5kW, 12.5V / 200A for main power output and 30W, 12V / 2.5A for standby power applications. You state that the PSU is used to supply power to data center and server equipment racks.
In your request you suggest the PSU is correctly classified under 8504.40.7016, Harmonized Tariff Schedule of the United States (HTSUS). We agree in part only. As the subject power supply is rated over 500 Watts, it is more appropriately classified in latter statistical subheadings.
The applicable subheading for the Power Supply, ZT Part # PS-2302-1A1U-LF, will be 8504.40.7018, HTSUS, which provides for “Electrical transformers, static converters (for example, rectifiers) and inductors…: Static converters: Power supplies for automatic data processing machines or units thereof of heading 8471; power supplies for goods of subheading 8443.31 or 8443.32; power supplies for monitors of subheading 8528.42 or 8528.52 or projectors of subheading 8528.62: Other: Other.” The general 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 8504.40.7018, 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 8504.40.7018, 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 the 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