CLA-2-84:OT:RR:NC:N1:102
Kevin R. Turner
Johnson Electric North America Inc.
47660 Halyard Dr
Plymouth, Michigan 48170
RE: The classification of a thermal management system
Dear Mr. Turner:
In your letter dated August 24, 2022, you requested a ruling on the classification of a thermal management system. Descriptive information was provided.
The product in question is identified as the Integrated Thermal Management System (ITMS), which is designed to be used in electric or hybrid vehicles. The ITMS consists of three electrically actuated spider valves, three centrifugal water pumps, multiple ports, and an electronic controller incorporated into a manifold box. The pumps displace and direct coolant to the valves, which direct and regulate the flow of coolant to the ports and in turn, released to the respective systems of the motor vehicle. The operation of the pumps and valves is controlled by the electronic controller, which communicates with the vehicle’s Electronic Control Unit.
The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation ("GRIs"), taken in order. GRI 1, HTSUS, states in part, that for legal purposes, classification shall be determined according to the terms of the headings, any relative section or chapter notes and, unless otherwise required, according to the remaining GRI’s taken in order. Because the ITMS primarily consists of valves (heading 8481) and pumps (heading 8413), both of which are classifiable under a different heading in the HTSUS, GRI 3 governs classification. GRI 3(b) states in part that composite goods, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component which gives them their essential character. GRI 3(c) provides that when goods cannot be classified by reference to GRI 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among the competing headings which equally merit consideration. With this system, no single component imparts the essential character.
Therefore, in accordance with GRI 3(c), the Integrated Thermal Management System, will be subheading 8481.80.9020, HTSUS, which provides for Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: Other appliances: Other: Other: With electrical or electro-hydraulic actuators: Control valves designed for proportional operation by a signal from a control device. The general rate of duty is 2 percent ad valorem.
It is noted that the country of origin is not stated for the Integrated Thermal Management System. If the country of origin of the Integrated Thermal Management System is China, pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8481.80.9020, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty under 9903.88.03. At the time of importation, you must report the Chapter 99 subheading, 9903.88.03, in addition to subheading 8481.80.9020, 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