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 power distribution units from China

Dear Mr. Bernard:

In your letter dated June 17, 2019 you requested a tariff classification ruling.

There are four items under consideration referred to as power distribution units (PDUs) that you identify as Model Numbers STV-4501A, STV-4501C, STV-4501D, and STV-4501K. The subject PDUs are similar to a power strip where numerous electrical sockets are available to plug devices into, however they also contain a network connection for remote switching, circuit breakers/fuses for electrical protection, and various electrical monitoring features.

Model Number STV-4501A is 69 inches long and approximately two inches wide by two inches deep. This unit is described as having two 20A circuit breakers, 24 C13 and 6 C19 electrical sockets, an RJ45 Ethernet connection, an RS-232 serial port, internal controller circuitry, and two temperature/humidity sensor inputs. Model Number STV-4501A provides an IEC C20 type inlet and is rated at 208 V.

Model Number STV-4501C is 69 inches long and approximately two inches wide by two inches deep. This unit is described as having two 20A circuit breakers, 24 C13 and 6 C19 electrical sockets, an RJ45 Ethernet connection, an RS-232 serial port, internal controller circuitry, and two temperature/humidity sensor inputs. Model Number STV-4501C provides NEMA L6-30P type inlet and is rated at 208 V.

Model Number STV-4501D is 69 inches long and approximately two inches wide by two inches deep. This unit is described as having two 20A circuit breakers, 24 C13 and 6 C19 electrical sockets, an RJ45 Ethernet connection, an RS-232 serial port, internal controller circuitry, and two temperature/humidity sensor inputs. Model Number STV-4501D provides IEC C20 type inlet and is rated at 230 V.

Model Number STV-4501K is 69 inches long and approximately two inches wide by two inches deep. This unit is described as having two 20A circuit breakers, 24 C13 and 6 C19 electrical sockets, an RJ45 Ethernet connection, an RS-232 serial port, internal controller circuitry, and two temperature/humidity sensor inputs. Model Number STV-4501K provides an IEC 2P+PE 6Hr type inlet and is rated at 230 V.

In use, the subject PDUs are mounted within electrical equipment cabinets for the purpose of distributing power to the electrical apparatus installed within the enclosure. The application of power from each outlet can be switched remotely over a network while various electrical usage properties, such as current draw or temperature can be also be monitored.

In your request you suggest the Power Distribution Units are classifiable under 8537.10.8000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Touch-sensitive data input devices (so-called "touch screens") without display capabilities, for incorporation into apparatus having a display, which function by detecting the presence and location of a touch within the display area (such sensing may be obtained by means of resistance, electrostatic capacity, acoustic pulse recognition, infra-red lights or other touch-sensitive technology).” As the subject power distribution units are neither touch screens nor do they incorporate any type of touch control circuitry, we disagree.

The applicable subheading for the Power Distribution Units STV-4501A, STV-4501C, STV-4501D, and STV-4501K will be 8537.10.9170, which provides for “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of 8535 or 8536, for electric control or the distribution of electricity…: For a voltage not exceeding 1,000 V: Other: Other: Other”. The general rate of duty will be 2.7 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). 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 8537.10.9170, 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 8537.10.9170, 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