CLA-2-85:OT:RR:NC:N2:220
Mariana Shumway
Nuvera Fuel Cells LLC
129 Concord Road
Billerica, MA 01821
RE: The tariff classification of an electric generator from China
Dear Ms. Shumway:
In your letter dated August 7, 2020 you requested a tariff classification ruling.
The merchandise under consideration is identified as the Fuel Cell Engine E-45, Part Number 31006230, and the Fuel Cell Stack, Part Number 31008410. The Fuel Cell Engine is described as an electrical generator consisting of the Fuel Cell Stack, pumps, valves, compressors, electrical controllers and panels, sensors, which are all mounted together in a tubular steel frame. The Fuel Cell Engine generates electricity via an electrochemical reaction using hydrogen. You state that the Fuel Cell Engine is intended to be used with electrically operated commercial vehicles, such as forklifts, buses, trucks, and on/off-road vehicles, and can be used as the primary electrical source or in a hybridized configuration with batteries. The Fuel Cell Engine is said to have a maximum output of 45 kW.
The Fuel Cell Stack, which is a subassembly of the Fuel Cell Engine and described as the core of the generator, consists of a stacked assembly of end plates, individual cells, and anode/cathode plates. Each individual cell is comprised of membranes, plates, and polymer sheets, where 263 cells are sandwiched between the anode and cathode plates to produce a Fuel Cell Stack. The Fuel Cell Stack is said to promote a controlled reaction that converts hydrogen and oxygen from ambient air into DC electricity and water as exhaust.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). 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.
GRI 2(a) states: Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
While the subject fuel cell stack cannot function solely on its own and requires pumps, valves, compressors, electrical controllers, etc. to produce electricity, we find that the stack assembly provides the essential character of a fuel cell electrical generator and through application of GRI 2(a), should be classified as such.
The applicable subheading for the Fuel Cell Engine E-45, Part Number 31006230, and the Fuel Cell Stack, Part Number 31008410, will be 8501.32.6090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electric motors and generators (excluding generating sets): Other DC motors; DC generators: Of an output exceeding 750 W but not exceeding 75 kW: Generators; Other. The rate of duty will be 2 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8501.32.6090, 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., 9903.88.02, in addition to subheading 8501.32.6090, 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 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