CLA-2-85:OT:RR:NC:N2:220
Vincent Hos
Thermo Fisher Scientific
28 Schenck Parkway
Asheville, NC 28803
RE: The tariff classification of an electrical controller from China
Dear Mr. Hos:
In your letter dated June 10, 2020 you requested a tariff classification ruling.
The item under consideration is referred to as the Control Box Assembly/Relay Enclosure (Controller), which is described as a metal enclosure containing three printed circuit board assemblies (PCBAs), a circuit breaker, lead acid batteries, a cooling fan, wiring harnesses, and transformers. The three PCBAs are identified as the Main Board PCB, the IO Board PCB, and the Power Board. The Controller is said to be dedicated for use with ultra-low temperature laboratory freezers and controls all functions of the freezer.
Based on the information provided, the Main Board PCB controls all freezer operations by receiving various sensor inputs and electrically controlling freezer functions, such as temperature, system failure, event data management, and control of the IO board’s relay outputs. The IO board consists of power handling components and a number of relays, where the output of the relays control the electricity supplied to various functions of the appliance, such as the operation of the compressors, condenser fans, refrigeration system solenoid, mullion heater, and other power requirements of the entire Controller. The Power Board is a switched mode power supply that provides DC voltage to the entire refrigeration system from the incoming AC line voltage coming through IO Board. The IO board receives commands and passes informational signals to the associated Main Board.
In your letter, you propose that the subject Controller is classified under subheading 8418.99.8060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps, other than the air conditioning machines of heading 8415; parts; other; other; other. While we recognize that the Controller is used in a freezer that is classified in heading 8418, this assembly is not classifiable in subheading 8418.99.8060, HTSUS.
“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 heading;
(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517;
(c) All other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548.
In applying Note 2(a) to Section XVI, the subject Controller is explicitly provided for elsewhere in the HTSUS and therefore, precluded from being classified as a part under heading 8418, HTSUS.
The applicable subheading for the Control Box Assembly/Relay Enclosure will be 8537.10.9170, Harmonized Tariff Schedule of the United States (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