CLA-2-76:OT:RR:NC:N5:116
Mr. Raul A. Cordero
United Customhouse Brokers, Inc.
373 Van Ness Ave., Suite 160
Torrance, California 90501
RE: The tariff classification of aluminum ceiling panels from China
Dear Mr. Cordero:
In your letter dated July 12, 2023, you requested a tariff classification ruling on behalf of your client, VSLZT, LLC.
The products to be imported are identified as aluminum composite ceiling panels and aluminum honeycomb ceiling panels. According to your submission, the aluminum composite panels measure 4 mm in thickness and consist of a polyethylene core sandwiched between two layers of aluminum foil measuring 0.18 mm in thickness. The foil is made from type 1100 aluminum alloy.
The aluminum honeycomb ceiling panels measure 20 mm in thickness and are comprised of a honeycomb aluminum core and two aluminum sheets measuring 0.5 mm in thickness. You indicate the sheets and honeycomb core are both made from type 3003 aluminum alloy.
You suggested classification for the aluminum composite ceiling panels and aluminum honeycomb ceiling panels under subheading 7616.99.5190, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles aluminum: other…other. Heading 7616 is a basket provision which provides for other articles of aluminum. Heading 7616 covers a wide range of aluminum articles that are not more specifically provided for in any other heading in the HTSUS. The Explanatory Notes for 76.16 state that “This heading covers all articles of aluminum other than those covered by the preceding headings of this Chapter, or by Note 1 to Section XV, or articles specified or included in Chapter 82 or 83, or more specifically covered elsewhere in the Nomenclature.” An article of aluminum would only be classified under heading 7616, which covers other articles of aluminum, if it was determined that the article is not more specifically provided for elsewhere in the tariff.
The subject composite panel is composed of a polyethylene core between two aluminum skins. The honeycomb panel consists of a front skin made of aluminum, an aluminum center core that resembles a honeycomb, and a back skin made of aluminum. Please note HQ H320936 dated May 10, 2023, regarding the revocation of HQ 953138 dated March 18, 1993, and the modification of NY N284130 dated September 15, 2017, that classified reflective aluminum composite panels. In HQ H320936, Customs and Border Protection (CBP) concluded that “Pursuant to General Rule of Interpretation (GRI) 3(b), the entire aluminum composite panel must be classified as if it consisted only of the single component which imparts the essential character of the whole—in this case, the aluminum component.” Based on the analysis contained in HQ H320936, it is now CBP’s position that the conclusion in HQ H953138 and NY N284130 that the aluminum composite panels are classified under heading 7616, HTSUS, is in error. HQ H320936 stated that “To determine which heading properly describes the aluminum component of the reflective aluminum composite panels for purposes of classifying the entire article under GRI 3(b), we turn to note 9(d) to Section XV…”. CBP determined that by application of GRI 3(b), the composite panels must be classified in heading 7606, HTSUS, as aluminum sheets, or in heading 7607, HTSUS, as aluminum foil, based on the thickness of the aluminum component that imparts the essential character.
In the opinion of our office, the legal reasoning and analysis used in HQ H320936 to classify the composite panels applies to the honeycomb panels. Each panel is classified by the single component that imparts the essential character. It is the opinion of this office that classification of the subject aluminum composite ceiling panel and the aluminum honeycomb ceiling panel under heading 7616, HTSUS, is precluded because the panels are more specifically provided for in another heading of the tariff (7606 or 7607, HTSUS).
The applicable subheading for the aluminum composite ceiling panels will be 7607.20.5000, HTSUS, which provides for aluminum foil (whether or not printed, or backed with paper, paperboard, plastics or similar backing materials) of a thickness (excluding any backing) not exceeding 0.2 mm: backed: other. The rate of duty will be free.
The applicable subheading for the aluminum honeycomb ceiling panels will be 7606.12.3091, HTSUS, which provides for aluminum plates, sheets and strip, of a thickness exceeding 0.2 mm: rectangular (including square): of aluminum alloys: not clad, with a thickness of 6.3 mm or less: other: heat-treatable industrial alloys of a kind described in statistical note 6 to this chapter. The rate of duty will be 3 percent ad valorem.
Please be advised that aluminum sheet may be subject to antidumping duties and/or countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce (ITA) and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). General information regarding the ITA and AD/CVD can be found at https://www.trade.gov/us-antidumping-and-countervailing-duties. The ITA’s “Guide on How to File for an Antidumping/Countervailing Duty Scope Ruling Request” is available at https://enforcement.trade.gov/scope/Request-Scope-Ruling.pdf.
On March 8, 2018, Presidential proclamations 9704 and 9705 imposed additional tariffs and quotas on a few steel and aluminum mill products. Exemptions have been made on a temporary basis for some countries. Quantitative limitations or quotas may apply for certain exempted countries and can also be found in Chapter 99. Additional duties for steel of 25 percent and for aluminum of 10 percent are reflected in Chapter 99, subheading 9903.80.01 for steel and subheading 9903.85.01 for aluminum. Products classified under subheadings 7606.12.3091 and 7607.20.5000, HTSUS, may be subject to additional duties or quota. At the time of importation, you must report the Chapter 99 subheading applicable to your product classification in addition to the Chapter 72, 73 or 76 subheading listed above.
The Proclamations are subject to periodic amendment of the exclusions, so you should exercise reasonable care in monitoring the status of goods covered by the Proclamations and the applicable Chapter 99 subheadings.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 7606.12.3091 and 7607.20.5000, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheadings 7606.12.3091 and 7607.20.5000, 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, 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 Angelia Amerson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division