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 computer chassis from China
Dear Mr. Bernard:
In your letter dated June 14, 2019 you requested a tariff classification ruling.
There are two items under consideration that are referred to as Chassis and are described as modular multi-function computing and storage enclosures. You state that the chassis are constructed of steel and are imported in two variations. The first example, PN CS-00318, is a 27.5” x 17” x 3.5” empty steel chassis with no subassemblies installed. On the front of CS-00318 are power on/off switches, an alarm mute button, a system reset button, various system LED indicators, and two USB connectors. The CS-00318 is equipped with drive bays and a hard disk drive backplane but does not have a power supply, motherboard, printed circuit board assemblies (PCBA), disk drives, memory, etc. which allow it to function.
The second example, PN CS-00312, is a 17.5” x 16.9” x 6.9” empty steel chassis with no subassemblies installed. On the front of CS-00318 are power on/off switches, an alarm mute button, a system reset button, various system LED indicators, and two USB connectors. The CS-00312 is equipped with drive bays and cooling fans but does not have the power supply, motherboard, PCBAs, disk drives, memory, etc. which allow it to function.
In your letter, you suggest that the subject chassis should be classified under subheading 8415.90.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity; Parts; Chassis, chassis bases and outer cabinets.” However, this office disagrees, because although the subject item is a chassis, it does not house components that meet the terms of heading 8415. As such, the subject chassis is excluded from consideration under heading 8415.
The applicable subheading for the Chassis, PN CS-00318 and CS-00312 will be 8473.30.5100, HTSUS, which provides for “Parts and accessories (other than covers, carrying cases and the like) 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: 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). 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 8473.30.5100, 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 8473.30.5100, 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