CLA-2-85:OT:RR:NC:N2:220
Shanshan Liang
Liang + Mooney, PLLC
2104 Delta Way, Unit 1
Tallahassee, FL 32303
RE: The tariff classification and applicability of trade remedies of a photovoltaic (PV) generator from Taiwan
Dear Ms. Liang:
In your letter dated May 1, 2023, you requested a tariff classification ruling on behalf of your client, Mega Sunergy.
The merchandise under consideration is identified as the CSPV Panel, Model No. 4W5V, which is described as a PV panel that is mounted within a plastic enclosure, with a plastic bezel framing the photovoltaic cells that measures 196 mm by 196 mm from the outside edges. The photovoltaic surface area is 165 mm by 165 mm as measured from the inside of the bezel edges, for a total PV surface area of 272 cm. Internally, the generator does not incorporate static converting apparatus or a battery. The generator is equipped with a permanently attached 2 m long output cable with a micro-USB connector. Based on the provided specifications, the subject generator has a maximum output of 5 V and 4 W. You have provided a sample of the generator, and you state the device is used to supply DC electricity to wireless outdoor cameras.
In your request, you suggest that the PV generator is properly classified under subheading 8501.71.0000, Harmonized Tariff Schedule of the United States (HTSUS). We agree.
The applicable subheading for the CSPV Panel, Model No. 4W5V will be 8501.71.0000, HTSUS, which provides for “Electric motors and generators (excluding generating sets): Photovoltaic DC generators: Of an output not exceeding 50 W.” The general rate of duty will be 2.5% ad valorem.
Also in your letter, you request we make a determination on the applicability of an exclusion to the Solar 201 safeguard measures pertaining to the subject photovoltaic generators.
The Solar 201 safeguard was implemented in accordance with Presidential Proclamation 9693, dated January 23, 2018, which was promulgated in pursuant to Section 201 of the Trade Act of 1974, as amended (19 U.S.C. §2252). See Fed. Reg. Vol. 83, No. 17 (Jan. 25, 2018). The Solar 201 safeguard establishes a tariff-rate quota and additional duties on imports of CSPV “cells” and “modules.” In particular, the proclamation calls for amendment of Chapter 99, Subchapter III, HTSUS, to create subheadings 9903.45.21 and 9903.45.22, which apply to CSPV cells, and 9903.45.25, which applies to CSPV modules. The proclamation also calls for amendment of Chapter 99, Subchapter III, to create a new legal note, Note 18, to define the products classifiable in subheadings 9903.45.21 to 9903.45.25 and set forth the additional rates of duties to be applied to these products. These amendments to Chapter 99 went into effect on February 7, 2018, and will remain in effect until February 6, 2026.
In your letter, you state that the additional rates of duty are not applicable to the subject generator since it is excluded from the scope of subheading 9903.45.25, HTSUS, because the generator satisfies the physical description pursuant to Note 18 (c)(iii)(8) to Chapter 99, HTSUS.
Note 18 to Subchapter III of Chapter 99 provides, in relevant part, as follows:
(iii) Subheading 9903.45.25 shall not cover the following goods, whether or not separate statistical reporting numbers therefor may appear in chapters 1 through 97 of the tariff schedule:
(8) 4 watt or less solar panels, each with a length or diameter of 70 mm or more but not over 235 mm, with a surface area not exceeding 539 cm2, and not exceeding 16 volts, provided that no such panel with these characteristics shall contain an internal battery or external computer peripheral ports at the time of entry;
To qualify for the exclusion set forth in Chapter 99, Subchapter III, Note 18(c)(iii)(8), certain enumerated physical characteristics must be present in the product at issue. As stated previously, the subject generator has a maximum output of 4 Watts and measures 178 mm by 178 mm for a photovoltaic surface area of 317 cm2. Furthermore, there is no battery or control/charging circuitry internal to the generator. However, we would note that the subject PV generator is equipped with a micro-USB connector that, in our view, is used to attach the generator to the outdoor camera to supply power and no data signals are input/output to or from the generator.
The term “computer peripheral port” is not defined in the HTSUS or the Explanatory Notes. When terms are not defined in the tariff or the ENs, they will be construed in accordance with their common and commercial meaning. See Nippon Kogaku (USA), Inc. v. United States, 69 CCPA 89, 673 F.2d 380 (1982). The common and commercial meaning may be determined by consulting dictionaries, lexicons, scientific authorities and other reliable sources. See C.J. Tower & Sons v. United States, 69 CCPA 128, 673 F.2d 1268 (1982). The Oxford Dictionary of Electronics and Electrical Engineering, 5th Edition, defines the individual terms as follows: the term “computer”, in part, is defined as an “automatic device for the processing of information received in a prescribed and acceptable form according to a set of instructions;” the term “peripheral [devices]” is defined as “devices that are connected to a computer form a computer system, and whose operation is controlled by the central processing unit of the computer;” and the term “port” is defined as an access point in an electronic circuit, device, network, or other apparatus where signals can be input and output, or where the variables of the system may be observed or measured.”
We are of the opinion that the micro-USB connector is not considered a “computer peripheral port,” as it neither connects to a computer system, nor does it exchange signals which can be observed. The function of the micro-USB cable is to connect to the device to which it is supplying power, where the connector type is one of convenience and serves only to direct generated electricity to the camera.
Based on the foregoing, the photovoltaic generator at issue satisfies the exemption set out in Note 18(c)(iii)(8) to Chapter 99 and is not subject to the Solar 201 safeguards.
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 Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division