CLA-2 OT:RR:NC:N1:102
Charlye M. Hebert
Bertling Logistics Inc.
19054 Kenswick Drive
Humble, Texas 77338
RE: The classification of solar powered condenser units from China.
Ms. Hebert:
In your letter dated February 8, 2022, on behalf of iAIRE, you requested a ruling on the classification of air conditioning (AC) condenser units.
The AC condenser units are described as solar condenser units. The 2-, 3- and 5-ton condenser units are each designed to be paired with an air handling unit for the purpose of cooling residences or cooling and heating residences. The condenser units primarily feature an outer housing, a compressor, heat exchange component, and a fan/motor assembly. Condenser units with heat pumps are used in an AC system that cools and heats. The condenser units are said to be incomplete and once imported, a filter, a solar panel, a Variable Frequency Drive, pressure sensors, and additional electrical controls that operate the condenser unit are installed onto the condenser unit.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance with the General Rules of Interpretation (GRIs) 1 through 6. The systematic detail of the HTSUS is such that virtually all goods are classified by application of GRI 1, that is, according to the terms of the headings of the tariff schedule and any relevant 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 may be applied, taken in order.
GRI 2(a), HTSUS 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 presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled.”
As imported, the condenser units have the essential character of complete condenser units. Accordingly, the applicable subheading for the condenser units that complete an AC system that cools and heats, described as solar condenser units, will be 8415.90.8065, HTSUS, which provides for Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated; parts thereof: Parts: Other: Other: Of heat pumps. The general rate of duty is 1.4 percent ad valorem.
The applicable subheading for the AC condenser units, described as solar condenser units, that complete an AC system that cools will be 8415.90.8085, HTSUS, which provides for Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated; parts thereof: Parts: Other: Other: Other. The general rate of duty is 1.4 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 8415.90.8065 and 8415.90.8085, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheadings 8415.90.8065 and 8415.90.8085, HTSUS, listed above. 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. This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. Part 177).
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division