April J. Collier
Pacific Customs Brokers Inc.
1400 A Street
Blaine, WA 98230
RE: The tariff classification of the LARQ Water Bottle System from China
Dear Ms. Collier:
In your letter dated August 6, 2019, on behalf of your client, Larq Inc., you requested a tariff classification ruling. The sample you have submitted is being returned as requested.
The first item, which was submitted as a sample, is a stainless steel vacuum seal bottle, complete with a cap containing a UV-C LED chip and lithium-polymer 3.7v battery. The bottle keeps 500 mL of water cold for up to twenty-four hours or hot for up to twelve hours. The cap, designed to work exclusively with the LARQ bottle, uses a patented UV-C technology to purify both water and the interior of the bottle. To operate, the user will press the button on the cap and then shake the bottle for sixty seconds. The cap also has the ability to automatically turn on every two hours to ensure fresh water. The device neutralizes up to ninety nine percent of harmful or odor-causing bacteria. The cap contains seventy-one percent of the cost of the cap/bottle combination.
The second item is the cap only containing the UV-C LED chip. This will be sold should the consumer require an additional or replacement cap. The cap is identical to the cap described in the first item and is the essential piece to the purification process.
The third item is a stainless steel bottle without a vacuum seal, complete with a cap containing a UV-C LED chip and lithium-polymer 3.7v battery. This item works in the same manner as the first item but does not keep the liquids cold (or hot) as long as the vacuum sealed version. The cap, in this instance, contains eighty percent of the cost of the bottle/cap combination.
The fourth item is a double-walled stainless steel bottle imported without the UV-C cap. This item will be dealt with under separate correspondence.
General Rule of Interpretation (GRI) 1, Harmonized Tariff Schedule of the United States (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. Heading 8421 specifically provides for purifiers of all types, including small domestic appliances, Note II of the Explanatory Notes to heading 8421 noted.
The applicable subheading for the stainless steel vacuum sealed bottle with cap, the cap when imported individually, and the stainless steel bottle without the vacuum seal with cap will be 8421.21.0000, HTSUS, which provides for “Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Filtering or purifying machinery and apparatus for liquids: For filtering or purifying water.” The rate of duty will be free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8421.21.0000, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8421.21.0000, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 Jason Christie at [email protected]
Steven A. Mack
National Commodity Specialist Division