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

Ryan Supek
TE Connectivity Corporation
2800 Fulling Mill Road
Middletown, PA 17057

RE: The tariff classification and applicability of Section 301 trade remedies of electromechanical relays from China

Dear Mr. Supek:

In your letter dated April 2, 2020 you requested our office issue a classification ruling and a determination on the application of the exclusion annotated under Chapter 99 Note 20 (k)(33) or Chapter 99 Note 20 (m)(63), Harmonized Tariff Schedule of the United States (HTSUS).

There are four items under consideration that are described as Potter & Brumfield T92 Power Relays. Each of the power relays are labelled as standard type relays and are said to be used in various applications such as HVAC power control, industrial controls, and with residential/commercial appliances.

The first relay is identified as Part Number 3-1393211-9/T92P11A22-12, which is an electromechanical power relay having a coil voltage rating of 12 VAC and a contact voltage rating of 277 VAC that are rated at 30 A. The relay is panel mount type having quick connect terminals measuring 35 mm by width, 52 mm by length, and 26 mm by height.

The second relay is identified as Part Number 1393212-7/T92S7D12-110, which is an electromechanical power relay having a coil voltage rating of 110 VDC and a contact voltage rating of 277 VAC at 40 A. The relay is a printed circuit board mount type having through-hole connect terminals measuring 35 mm by width, 52 mm by length, and 31 mm by height.

The third relay is identified as Part Number 7-1393211-2/T92P7D22-48 which is an electromechanical power relay having a coil voltage rating of 48 VDC and a contact voltage rating of 277 VAC at 40 A. The relay is a panel mount type having quick connect terminals measuring 35 mm by width, 52 mm by length, and 26 mm by height.

The fourth relay is identified as Part Number 6-1393211-3/T92P7A22-277 which is an electromechanical power relay having a coil voltage rating of 48 VDC and a contact voltage rating of 277 VAC at 40 A. The relay is a panel mount type having quick connect terminals measuring 35 mm by width, 52 mm by length, and 26 mm by height.

The applicable subheading for the Potter & Brumfield T92 Power Relays, Part numbers 3-1393211-9/T92P11A22-12, 1393212-7/T92S7D12-110, 7-1393211-2/T92P7D22-48, and 6-1393211-3/T92P7A22-277 will be 8536.49.0075, HTSUS, which provides for “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits…for a voltage not exceeding 1,000 V…: Relays: Other: Other: Other: Electromechanical.” The general rate of duty will be 2.7 percent ad valorem.

Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8536.49.0075, 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 8536.49.0075, 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 Section 301 trade remedy, 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

With regard to your request for an exclusion from the additional duties pursuant to Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS, we would note that the exclusions annotated in the June 4, 2019 Federal Register (see 84 FR 25895 “Notice of Product Exclusions: China's Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation”) apply to importers of merchandise meeting a specific description, even when they are neither the requestor of the exclusion nor if their products are those that were reviewed for the exclusion. 84 FR 25895 states, in pertinent part:

In accordance with the July 11 notice, the exclusions are available for any product that meets the description in the Annex, regardless of whether the importer filed an exclusion request. Further, the scope of each exclusion is governed by the scope of the product descriptions in the Annex to this notice, and not by the product descriptions set out in any particular request for exclusion.

In your request, you first suggest that the applicable exclusion to the subject power relays, as published under the Federal Register Annex enumeration (33), is specifically provided for under Section XXII, Chapter 99, Subchapter III U.S. Note 20(k), HTSUS, as follows:

The U.S. Trade Representative determined to establish a process by which particular products classified in heading 9903.88.01 and provided for in U.S. notes 20(a) and 20(b) to this subchapter could be excluded from the additional duties imposed by heading 9903.88.01. See 83 Fed. Reg. 28710 (June 20, 2018) and 83 Fed. Reg. 32181 (July 11, 2018). Pursuant to the product exclusion process, the U.S. Trade Representative has determined that the additional duties provided for in heading 9903.88.01 shall not apply to the following particular products, which are provided for in the enumerated statistical reporting numbers::

Electromechanical relays, for a voltage exceeding 60 V but not over 250 V, with contacts rated at 10 A or more (described in statistical reporting number 8536.49.0075).

Based on the pertinent facts, we find that each of the power relays under consideration are not accurately described as noted in enumeration (33) above. Specially, each of the relays are rated at 277 VAC, which exceeds the maximum voltage rating allowed. Therefore, Section XXII, Chapter 99, Subchapter III U.S. Note 20(k), HTSUS, is not applicable to the subject merchandise.

As an alternative, you suggest that a secondary exclusion applicable to the subject power relays, as published Federal Register Annex enumeration (63), is specifically provided for under Section XXII, Chapter 99, Subchapter III U.S. Note 20(m), HTSUS, as follows:

The U.S. Trade Representative determined to establish a process by which particular products classified in heading 9903.88.01 and provided for in U.S. notes 20(a) and 20(b) to this subchapter could be excluded from the additional duties imposed by heading 9903.88.01. See 83 Fed. Reg. 28710 (June 20, 2018) and 83 Fed. Reg. 32181 (July 11, 2018). Pursuant to the product exclusion process, the U.S. Trade Representative has determined that the additional duties provided for in heading 9903.88.01 shall not apply to the following particular products, which are provided for in the enumerated statistical reporting numbers:

Electromechanical relays, for a voltage not exceeding 24 V, other than automotive flashers, with contacts rated at 10 A or more, measuring not over 80 mm in any dimension (described in statistical reporting number 8536.41.0050).

Based on the pertinent facts, we find that each of the power relays under consideration are not accurately described as noted in enumeration (63) above. Specially, each of the relays are rated at 277 VAC, which exceeds the maximum voltage rating allowed. Furthermore, the relays are not classified under subheading 8536.41.0050, HTSUS. Therefore, Section XXII, Chapter 99, Subchapter III U.S. Note 20(m), HTSUS, is not applicable to the subject merchandise.

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