CLA-2-85:OT:RR:NC:N2:220
Regina Girsh
Kulicke & Soffa Industries Inc.
1005 Virginia Drive
Fort Washington, PA 19034
RE: The tariff classification of a programmable controller from China
Dear Ms. Girsh:
In your letter dated December 1, 2020 you requested a tariff classification ruling.
The merchandise under consideration is identified as the Servo CPU Board, PN 08895-4020-000, which is described as a printed circuit board assembly (PCBA) used to control the basic functions of a ball-bonding machine. The Servo CPU Board employs multiple terminals, connectors, sockets, integrated circuits and electronic components and operates with a range of voltages, from 1.2 VDC to 3.3 VDC. You describe the ball-bonding machine as one that creates ball-like interconnections or welds between dies, substrates or lead frames.
Based on the information provided, the Servo CPU Board acquires sensor data and synchronizes the motion of the X/Y table and bond head of the bonding machine. You state that the Servo CPU Board functions as the main controller by translating software commands and generating the servo data for the required motion, which is synchronized to the motor controllers that drive the movement of the table and bond head.
The General Rules of Interpretation (GRIs) to the Harmonized Tariff Schedule of the United States (HTSUS) govern the classification of goods in the tariff schedule. GRI1 states, in pertinent part, "For legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ." In addition, although not dispositive, the Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs.
The ENs to heading 8537, HTSUS, which describe programmable controllers, state in pertinent part that “Programmable controllers are digital apparatus using a programmable memory for the storage of instructions for implementing specific functions… to control… various types of machines.” Further, we would note HQ H242032, citing HQ H008421, determined that a programmable controller’s ultimate purpose is to control output devices by reading input signals from sensors and deciding what the outputs should be, based on the machine’s program logic. Accordingly, we find that the primary function of the Servo CPU Board is to automatically analyze data from various sensors and control the ball-bonding machine’s motion and function. As such, we find that the subject Servo CPU Board is accurately described as a programmable controller and properly classified under heading 8537, HTSUS.
The applicable subheading for the Servo CPU Board, PN 08895-4020-000, will be 8537.10.9160, HTSUS, which provides for “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of 8535 or 8536, for electric control or the distribution of electricity, …: For a voltage not exceeding 1,000 V: Other: Other: Programmable controllers.” 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 8537.10.9160, 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 8537.10.9160, 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 the following:
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