CLA-2-85:OT:RR:NC:N2:209
Yuxi Xie
Netatmo
245 rue du Vieux Pont de Sèvres Boulogne-Billancourt 92100
France
RE: The tariff classification of an air conditioner control transceiver from China
Dear Mr. Xie:
In your letter dated September 13, 2023, you requested a tariff classification ruling.
The item concerned is referred to as the Netatmo intelligent air conditioner controller. This device is a transceiver unit which allows the user to remotely control an air conditioner equipped with an infrared (IR) remote control receiver.
This device incorporates an IR transmitter, a WIFI module, thermometer and humidity sensors. The user can connect to the remote transmitter using their home WIFI network and control the operation of their air conditioner from a smartphone, tablet or computer with a proprietary application/program installed.
The Netatmo intelligent air conditioner controller receives the user’s control information via the home WIFI network, then sends that information to the air conditioner via its IR emitter. The temperature sensor and humidity sensor are used to send environmental information to the user. The user can then make adjustments to the air conditioner unit based upon those environmental factors.
The Netatmo intelligent air conditioner controller can be installed in front of an air conditioner in two ways: mounted on a wall, or simply placed on a piece of furniture. Power is supplied via a micro USB cable.
Note 3 to Section XVI, HTSUS, provides: Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
The Netatmo intelligent air conditioner controller would be considered a composite machine. It executes the functions of data transmission/reception as well as those functions executed by the temperature and humidity sensors. Based upon the facts presented it is the opinion of this office that the unit’s ability to transmit and receive provides the principal function.
The applicable subheading for the Netatmo intelligent air conditioner controller will be 8517.62.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data…: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other”. The general rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8517.62.0090, 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 subheading 8517.62.0090, 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.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Steven Pollichino at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division