CLA-2-84:OT: RR:NC:N1:102
Michael Gangloff
SAC Foundation
2957 Koapaka Street
Honolulu, Hawaii 96819
RE: The classification of a Freshwater Flake Ice Machine with Flake Ice Storage from China
Dear Mr. Gangloff:
In your letter dated August 20, 2022, you requested a ruling on the classification of a Freshwater Flake Ice Machine with Flake Ice Storage. Descriptive information was provided.
The merchandise at issue is referred to as a snow unit. The snow unit consists of two shipping containers, each measuring 20 feet in length, and a blower assembly imported together in the same shipment. The shipping containers are designed to be stacked, one directly on top of the other. The upper container, identified as the Freshwater Flake Ice Machine, has a production capacity that exceeds one ton, and incorporates an evaporator, condenser, and compressor that freezes liquid into thin ice that is afterwards dropped from the bottom outlet into the inlet of the lower container, identified as the Flake Ice Storage. The lower container, which also incorporates an evaporator, condenser, and compressor, receives the thin ice. The thin ice can be stored in this container or directly conveyed using a conveyer belt system to the chopping and crushing section within to become flake ice. Afterwards, the flake ice is dispensed from the bottom outlet of the lower container and blown onto the ground by the blower assembly that is positioned underneath the lower container. Together, the upper and lower containers and blower assembly function as an ice making system that freezes liquid into ice and dispenses flake ice onto the ground.
In accordance with GRI 1, the applicable subheading of the snow unit, which consists of a Freshwater Flake Ice Machine with Flake Ice Storage and a blower assembly, will be subheading 8418.69.0110, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps, other than the air conditioning machines of heading 8415; parts thereof: Other refrigerating or freezing equipment; heat pumps: Other: Ice making machines. The rate of duty is Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8418.69.0110, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty under 9901.88.01. At the time of importation, you must report the Chapter 99 subheading, 9901.88.01, in addition to subheading 8418.69.0110, 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. Part 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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division