CLA-2-85:OT:RR:NC:N2:220

Amy Wicker
DSV
27651 Hildebrandt Street
Romulus, MI 48174

RE: The tariff classification of electric motors from China

Dear Ms. Wicker:

In your letter dated February 20, 2020 you requested a tariff classification ruling on behalf of your client, SEA Electric.

The first electric motor under consideration is identified as the TM4 Sumo, Model Number LSM200C-MV2500, which is described as a high torque/low speed permanent magnet motor that is intended to be attached to the standard differentials, gearboxes, and axles of electric vehicles. You state that the TM4 Sumo motor operates on AC electricity, however the technical specifications you provided state the motor operates on 450 peak VDC and has a maximum power output of 250 kW.

The second electric motor under consideration is identified as the TM4 Sumo HD, Model Number LSM280A-HV, which is described as a high torque/low speed permanent magnet motor that is intended to be attached to the standard differentials, gearboxes, and axles of electric vehicles. The TM4 Sumo HD motor operates on 750 peak VDC and has a maximum power output of 361 kW.

The third electric motor under consideration is identified as the JJE-OD290 700 NM Motor, which is described as a high power/high speed electric motor that is intended to be attached to the standard differentials, gearboxes, and axles of electric vehicles. The JJE-OD290 700 NM Motor operates on 475 peak VDC and has a maximum power output of 134 kW.

The fourth electric motor under consideration is identified as the JJE-OD290 1000 NM Motor, which is described as a high power/high speed electric motor that is intended to be attached to the standard differentials, gearboxes, and axles of electric vehicles. The JJE-OD290 1000 NM Motor operates on 384 peak VDC and has a maximum power output of 180 kW.

The fifth electric motor under consideration is identified as the JJE-OD365 1500 NM Motor, which is described as a high power/high speed electric motor that is intended to be attached to the standard differentials, gearboxes, and axles of electric vehicles. The JJE-OD365 1500 NM Motor operates on 350 peak VDC and has a maximum power output of 125 kW.

We would note that the information that has been provided includes the technical features for power inverters, which you state are not necessarily attached to the motors upon importation. As such, the power inverters are not subject to this classification ruling.

In your request, you suggest the subject electric motors are classifiable under subheading 8501.53.8040, Harmonized Tariff Schedule of the United States (HTSUS). We disagree. Based on the technical specifications provided, each of the motors operate on direct current, which precludes their classification from subheading 8501.53.8040, HTSUS.

The applicable subheading for the TM4 Sumo, Model Number LSM200C-MV2500, the TM4 Sumo HD, Model Number LSM280A-HV, and the JJE-OD290 1000 NM Motor, will be 8501.33.4040, HTSUS, which provides for “Electric motors…: Other DC motors…: Of an output exceeding 75kW but not exceeding 375 kW: Motors: Other…: Not exceeding 373 kW.” The general rate of duty will be 2.8 percent ad valorem.

The applicable subheading for the JJE-OD290 700 NM Motor and the JJE-OD365 1500 NM Motor will be 8501.33.2080, HTSUS, which provides for “Electric motors…: Other DC motors…: Of an output exceeding 75kW but not exceeding 375 kW: Motors: Exceeding 75 kW but under 149.2 kW...: 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 8501.33.4040, 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., 9903.88.01, in addition to subheading 8501.33.4040, HTSUS, listed above. Furthermore, products of China classified under subheading 8501.33.2080, HTSUS, unless specifically excluded, are also 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., 9903.88.02, in addition to subheading 8501.33.2080, HTSUS, listed above The articles in question may be eligible for an exclusion from the Section 301 tariffs; however, that determination will be made independently of this prospective tariff classification ruling. For further information regarding specific entry issues, please contact your assigned CBP Center of Excellence & Expertise office prior to importation of the goods.

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 https://www.cbp.gov/trade/remedies/301-certain-products-china

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