CLA-2-85:OT:RR:NC:N2:220
Gilberto Arias
Arias Trade Consulting, Inc.
4737 Emory Rd.
El Paso, TX 79922
RE: The tariff classification of a control board from China
Dear Mr. Arias:
In your letter dated September 27, 2019 you requested a tariff classification ruling on behalf of your client, Creation Technologies Calexico Inc.
The merchandise under consideration is identified as the Beacon II Control Board, which is described as a microcomputer-based electronic control board for a refrigeration system. The Beacon II Control Board consists of relays, connectors, switches, a terminal block, and control electronics that are mounted onto a printed circuit board assembly (PCBA).
In use, the PCBA receives input from the thermostat and/or temperature sensor(s) and controls the connected refrigeration unit based on the sensor inputs and installed programming setpoints. By opening and closing the relay circuits, the Beacon II Control Board controls the current flow to the refrigeration unit for the purpose of adjusting and regulating the temperature, controlling defrost functions, monitoring and reporting alarms, etc. of the connected unit.
In your letter, you suggest that the Beacon II Control Board should be classified under subheading 8415.90.8085, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated; parts thereof: Parts: Other: Other: Other”. We disagree.
“Parts” are classified in accordance with Note 2 to Section XVI which states that, subject to certain exclusions found in Note 1 to Section XVI, Note 1 to Chapter 84, and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:
(a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;
In this instance, Beacon II Control Board is specifically provided for elsewhere in Section XVI of the HTSUS. Therefore, in accordance with Note 2(a) to Section XVI, the subject assembly is excluded from consideration of subheading 8415.90.8085.
The applicable subheading for the Beacon II Control Board will be 8537.10.9170, HTSUS, which provides for “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of 8535 or 8536, for electric control or the distribution of electricity…: For a voltage not exceeding 1,000 V: Other: Other: Other”. The general rate of duty will be 2.7 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8537.10.9170, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8537.10.9170, 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
https://www.cbp.gov/trade/remedies/301-certain-products-china
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