CLA-2-90:OT:RR:NC:N1:105
Meredith DeMent
Sidley Austin LLP
1501 K Street, N.W.
Washington, DC 20005
RE: The tariff classification of the E-Series Ultrasonic meters from Mexico
Dear Ms. DeMent:
In your letter dated November 19, 2019, on behalf of your client, Badger Meter, Inc., you requested a tariff classification ruling.
The product under consideration is the E-Series Ultrasonic meter, which is used to measure the flow of liquids in potable, reclaimed, residential, commercial, industrial and fire service applications. The meters are installed between water lines owned by a utility and lines leading to a commercial or residential location. The meter measures the flow rate by determining the difference in the time it takes an acoustic signal to travel upstream versus downstream through flowing water. The difference in time is proportional to the flow rate. The devices include pressure and temperature monitoring which enables the utilities and industries to receive early detection alerts of disturbances to flow, pressure and temperature. The E-Series Ultrasonic meters contain a high–resolution LCD display which shows the flow rate in gallons per minute, cubic meters per hour, feet per hour, reverse-flow, pressure, temperature and alarms for certain conditions. The meters are powered with lithium batteries and transmit readings to the end user via connected radios that transmit to different types of networks, including cellular, power line, Wi-Fi, RF, etc. Based on the information provided, the E-Series Ultrasonic meter appears to be “electrical” as defined by Additional U.S. Note 2 to Chapter 90.
The subject articles are machines designed to perform at least two complementary functions. First, the device measures the flow rate in order to detect problems such as leaks in a water system, suggesting classification under heading 9026. Second, the device can also read the total amount of liquid, i.e., volume, that travels through (“Firmware in the flow meters uses the flow rate to calculate utilization volume and the LCD register displays both flow rate and volume.”). Accordingly, and pursuant to Note 3 to Chapter 90, Harmonized Tariff Schedule of the United States (HTSUS), which applies the rules set forth in Notes 3 and 4 to section XVI, such multifunction devices are classified in accordance with their principle use. We find that the principle use of the E-Series Ultrasonic meter is to measure the flow rate, suggesting classification in heading 9026.
However, the Explanatory Notes (ENs) to the HTSUS, which constitute the official interpretation of the tariff at the international level, must be considered here. The Explanatory Notes to heading 9026, HTSUS, state: “apparatus which merely indicate the total amount of liquid delivered over a period” are excluded. As noted, the device does not merely indicate the total amount but provides detailed flow rate information, which is the principle use of the device. The Explanatory Notes to heading 9028, HTSUS, state that “flowmeters [of heading 9026], which measure rate of flow are excluded…”. Again, as the primary function of the E-Series Ultrasonic meter is to measure the flow rate we find that the devices are excluded from classification under heading 9028.
The applicable subheading for the E-Series Ultrasonic meters will be 9026.10.2040, HTSUS, which provides for “Instruments and apparatus for measuring or checking the flow, level, pressure or other variables of liquids or gases (for example, flow meters, level gauges, manometers, heat meters), excluding instruments and apparatus of heading 9014, 9015, 9028 or 9032; parts and accessories thereof: For measuring or checking the flow or level of liquids: Electrical: Flow meters.” The general rate of duty will be free.
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 Jason Christie at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division