CLA-2-85:OT:RR:NC:N4:415
Mr. Jay Cho
BDO USA, LLP
1450 Brickell Avenue, 18th Floor
Miami, FL 33131
RE: The tariff classification of two outdoor grills from China.
Dear Mr. Cho:
In your letter dated February 9, 2022, you requested a tariff classification ruling on behalf of your client, Nexgrill Industries, Inc.
Product literature with images was provided in lieu of samples.
The first outdoor grill under consideration is referred to as model 720-1054. It is a gas grill that consists of two warming racks, a lid with handle, a digital controller, firebox, griddle, burners, grease tray and cup, charcoal tray and ash catcher, wheels, two shelves on the side, and a stand, which are all primarily made of iron and steel. The grill uses liquid propane as fuel and is designed for outdoor use in the backyard or on a patio. No gas valve knobs are present on the main control panel. Instead, the digital controller includes lighted push buttons that illuminate when the appliance power is activated. The digital grill contains multiple electric microprocessors to monitor and control every function of the grill. There is a power cord attached to the grill to use the electricity to control the flow of gas, cooking temperature, etc. The grill would run off of a standard 20-pound propane tank.
The second outdoor grill under consideration is referred to as model 720-1055 Option C. This grill shares the same functions and major components as the above model, apart from being wider and adding an attached electric air oven. Per your correspondence, this is a convection oven that uses a fan to circulate the heated air created from upper and lower heating elements to cook the food. The main functions of the oven are to bake, broil, and toast.
You proposed classification for both products under subheading 8516.60.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for, in pertinent part, domestic electric grills. We disagree with this classification on both grills.
Per your correspondence, the first grill, model 720-1054, does not contain an electric heating element. Heading 8516 includes “other electrothermic appliances of a kind used for domestic purposes.” This indicates the appliance must be electrothermic, meaning heat is generated through electrical current. Despite this grill being controlled by electrical components, it is the ignited propane gas which is providing the heat that ultimately cooks the food. As imported, this article meets the terms of subheading 7321.11.6000, HTSUS, as a gas grill made of iron and steel for domestic use. Accordingly, classification under any other subheading would not be appropriate.
For the second grill, model 720-1055 Option C, it is an appliance that contains two distinct components, the gas grill, and the electric oven. Thus, we agree with your argument pointing to the Explanatory Notes to heading 7321 that it “excludes appliances also using electricity for heating purposes, as in the case of combined gas electric cookers for example (heading 85.16).” As indicated above, the grill is not an article of heading 8516, so the classification of this grill will be determined by the oven. Further, we also note that you indicate the oven predominates in value over the grill. This oven would not be considered portable, nor does it exceed a maximum width of 70 centimeters.
The applicable subheading for the first outdoor grill, model 720-1054, will be 7321.11.6000, HTSUS, which provides for “[s]toves, ranges, grates, cookers (including those with subsidiary boilers for central heating), barbecues, braziers, gas rings, plate warmers and similar nonelectric domestic appliances, and parts thereof, of iron or steel: [c]ooking appliances and plate warmers: [f]or gas fuel or for both gas and other fuels: [o]ther: [o]ther.” The general rate of duty is Free.
The applicable subheading for the second outdoor grill with air oven, model 720-1055 Option C, will be 8516.60.4074, HTSUS, which provides for: "[e]lectric instantaneous or storage water heaters and immersion heaters; electric space heating apparatus and soil heating apparatus; electrothermic hairdressing apparatus (for example, hair dryers, hair curlers, curling tong heaters) and hand dryers; electric flatirons; other electrothermic appliances of a kind used for domestic purposes; electric heating resistors, other than those of heading 8545; parts thereof: [o]ther ovens; cooking stoves, ranges, cooking plates, boiling rings, grillers and roasters: [c]ooking stoves, ranges and ovens: [o]ther: [o]ther; [o]f a maximum width not exceeding 70 centimeters.” The general rate of duty is Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7321.11.6000 and 8516.60.4074, 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 7321.11.6000 or 8516.60.4074, 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, including information on exclusions and their effective dates, 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 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 Kristopher Burton at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division