CLA-2-84:OT:RR:NC:N1:118
Mr. Jean-Claude Excoffier
HP Inc.
150 Route du Nant d’Avril
Meyrin, CH1217
Switzerland
RE: The tariff classification of a HP Laser Toner Reload Kit from China.
Dear Mr. Excoffier:
In your letter dated January 14, 2020, you requested a tariff classification ruling.
You have stated that the item under consideration, identified as a HP Toner Reload Kit, is a standard capacity toner cartridge that is compatible only with HP Neverstop Laser 1000 Printer Series and HP Neverstop Laser MFP 1200 Printer Series. The HP Neverstop Laser 1000 Printer series functions solely as a printer, while the HP Neverstop Laser MFP 1200 Printer series can print, scan and copy documents. Bother printers are capable of connecting to a computer, smartphone or tablet.
The HP Toner Reload Kit incorporates special mechanical and electrical components, including an authentication chip, which prevents the toner cartridge from being used with any other types of printers. When the toner needs to be refilled, the user receives a message on their computer. The Toner Reload Kit can then be inserted and locked into the toner access port on the HP Neverstop Laser Printer Series. The authentication chip contains information used by the printers to authenticate it as a certified HP toner supply. The printer reads the chip and initializes the HP Toner Reload Kit.
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRI). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
There is no dispute that the HP Toner Reload Kit is classified in heading 8443, HTSUS, which provides for printing machinery used for printing by means of plates, cylinders and other printing components of heading 8442; other printers, copying machines and facsimile machines, whether or not combined; parts and accessories thereof. Rather, the issue is the proper classification at the subheading level. As a result, GRI 6 applies. The two competing subheadings are subheading 8443.99.25, which provides for parts of printers units; and subheading 8443.99.50, which provides for parts of printer/scanner/copier units. GRI 6 provides that the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to GRIs 1 through 5 on the understanding that only subheadings at the same level are comparable. GRI 3(a) states that the subheading which is most specific in its description shall be preferred, unless the goods contain a mixture of materials or substances, are a composite good, or part of an item put up in sets. In our opinion, the terms of neither subheading 8443.99.25 nor of subheading 8443.99.50 are more specific than the other through the 8-digit level. The explanatory notes to GRI 3 indicate that no hard and fast rule exists for this comparison, but that name designations or clearly identifying descriptions are preferred. We believe that neither exists here. The HP Toner Reload Kit is not composed of a mixture, a composite good, or part of a set. Therefore, GRI 3 (b) is not applicable. Under GRI 3(c), then, classification is made under the subheading which last occurs in numerical order among those that equally merit consideration. In this case, that classification would be 8443.99.50, HTSUS.
The applicable subheading for the HP Toner Reload Kit will be 8443.99.5015, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts and accessories for the goods of subheading 8443.31: other. The general rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8443.99.5015, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 8443.99.5015, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 Anthony E. Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division