CLA-2-84:OT:RR:NC:N1:103
Natividad Castaneda
Danby Products Ltd.
43 Woodwin Drive Unit 409
Guelph, N1H 6Z9
Canada
RE: The tariff classification of the Storm Café Brewer from China
Dear Ms. Castaneda:
In your letter dated March 30, 2022, you requested a tariff classification ruling.
The item under consideration is referred to as a "Store Café Brewer," model number ABF-M2KHK1CF. The Store Café Brewer is capable of dispensing hot water, cold water, or a single serve cup of coffee. The unit consists of a pod type coffee brewer incorporated into a basic water cooler designed to use a bottom loaded water bottle. The coffee brewer can prepare six, eight, or ten-ounce cups of coffee. The main components include a hot tank assembly, cold reservoir, water pump, motors, compressor, brewer head, and water cartridge. The components are housed within a cabinet that is approximately 12.6 inches wide, 13.4 inches deep, 45.2 inches in height, and weighs 31.1 pounds. You state the Storm Café Brewer is primarily sold to commercial businesses and offices but is also available to residential consumers through distributors.
In your request, you stated that you believe the appropriate classification for the “Storm Café Brewer,” model number ABF-M2KHK1CF, is 8516.71.0060, Harmonized Tariff Schedule of the United States ("HTSUS"), which provides for other coffee makers of a kind used for domestic purposes. We disagree with your proposed classification based on the submitted documentation indicating this article is intended for commercial purposes. Primarily, we note in the product brochure that this hot/cold water dispenser with an incorporated coffee brewer is described as having “quality, commercial-grade construction.” The Harmonized Commodity Description and Coding System Explanatory Notes ("ENs") constitute the official interpretation of the Harmonized System at the international level. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. Per the ENs for heading 85.16, excluded from this heading are “other thermo electric appliances which are not normally used in the household” and points toward heading 8419. As such, this item is excluded from classification within heading 8516 and must be classified elsewhere based on its commercial nature.
The applicable subheading for the Storm Café Brewer, model number ABF-M2KHK1CF, will be 8419.89.9560, HTSUS, which provides for "Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; parts thereof: Other machinery, plant or equipment: Other: Other: Other: Other: For food and beverages." The rate of duty will be 4.2 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8419.89.9560, 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 8419.89.9560, 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 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 Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division