CLA-2-84:OT:RR:NC:N2:220
Richard Bernard
ZT Systems
333 Meadowlands Parkway, 2nd Floor
Secaucus, NJ 07094
RE: The tariff classification of a Graphics Processing Units from China
Dear Mr. Bernard:
In your letter dated June 13, 2019 you requested a tariff classification ruling.
The first item under consideration is identified as the NVIDIA Quadro K2000D (Quadro), which is described as a PCI Express printed circuit board assembly having 2 GB GDDR5 memory, dual DVI-DL output connections, a Mini-DisplayPort, and a heatsink fan assembly. The Quadro video card is a graphics processing unit (GPU) that is intended to be physically mounted inside an automatic data processing machine for the purpose of providing the graphics interface/imaging applications to an output device.
The second item under consideration is identified as the NVIDIA Tesla V100 SXM2 GPU Accelerator (Tesla), which is described as a high bandwidth data center GPU having 32 GB HBM2 memory and a mezzanine style card that plugs into the motherboard using board to board connectors. The Tesla video card contains two high speed connectors that carry NVLink, PCI Express, power, ground, and various control signals. The Tesla video card is intended to be physically mounted inside an automatic data processing machine for the purpose of providing the graphics interface in data center computing applications.
The applicable subheading for the Graphics Processing Units, NVIDIA Quadro K2000D & NVIDIA Tesla V100 SXM2 GPU Accelerator, will be 8473.30.1180, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Parts and accessories … suitable for use solely or principally with machines of headings 8469 to 8472: Parts and accessories of the machines of heading 8471: Not incorporating a cathode ray tube: Printed circuit assemblies." 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). See also “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, 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 8473.30.1180, 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., 9903.88.03, in addition to subheading 8473.30.1180, 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 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