CLA-2-85:OT:RR:NC:N2:220
Henry Yeh
Kuehne + Nagel, Inc.
20000 S. Western Ave.
Torrance, CA 90501
RE: The tariff classification of a power supply from China
Dear Mr. Yeh:
In your letter dated March 6, 2020 you requested a tariff classification ruling on behalf of your client, 3Y Technology Inc.
The merchandise under consideration is identified as the Power Supply-AC, Model No. YGEB0850AM-1A00P10, which is described as a 254 mm by 152.4 mm by 76.2 mm regulated power supply that is intended to be used with gaming machines. The power supply is equipped with two output connectors, each having multiple 24 VDC outputs, and has a maximum power output of 850 W.
In your request, you suggest the Power Supply-AC is classifiable under subheading 9504.30.0060, Harmonized Tariff Schedule of the United States (HTSUS), as parts and accessories for video games. We disagree. We find that, although the subject power supply may actually be used for gaming machines, the product does not belong to a class or kind of merchandise that is principally used with the merchandise of heading 9504, HTSUS.
The applicable subheading for the Power Supply-AC, Model No. YGEB0850AM-1A00P10, will be 8504.40.9540, HTSUS, which provides for Electrical transformers, static converters…: Static converters: Other: Rectifiers and rectifying apparatus: Power supplies: Other. The rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8504.40.9540, 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., 9903.88.03, in addition to subheading 8504.40.9540, 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