CLA-2-85:OT:RR:NC:N2:208
Mr. William G. Braier
Radix Group International dba DHL Global Forwarding
6120 Ace Industrial Drive
Cudahy, Wisconsin 53110
RE: The tariff classification of Tracking Modules from China
Dear Mr. Braier:
In your letter dated November 16, 2020, on behalf of Spireon, Inc., you requested a tariff classification ruling.
There are five tracking modules under consideration in this ruling request, Edge LTE, Edge LTE+, FL 22+ LTE, AST100 (CAT 1 3G FB) and FL FLEX LTE. The tracking modules are designed to be placed in automotive vehicles and trailers. All of the subject tracking modules are composite machines consisting of a GPS receiver and a cellular modem for wireless data communication. We also note that there is an additional 3G fallback feature and broad nationwide and international coverage on Edge LTE+, FL 22+ LTE, and ATS 100 (CAT 1 3G FB) models.
In your request, you suggest that the subject tracking modules are classified in heading 8517, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof.” However, it is the opinion of this office, that the GPS performs the principal function of these composite machines. Without the GPS and sensors, there would be no information to transmit to the application.
The applicable subheading for the five tracking modules will be 8526.91.0040, HTSUS, which provides for “Radio apparatus, radio navigational aid apparatus and radio remote control apparatus: Other: 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 8526.91.0040, 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 8526.91.0040, 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 Lisa Cariello at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division