CLA-2-85:OT:RR:NC:N2:220
Rachel Stallings
FNS Customs Brokers, Inc.
18620 Harmon Ave
Carson, CA 90746
RE: The tariff classification of a power module from China
Dear Ms. Stallings:
In your letter dated March 2, 2022, you requested a tariff classification ruling on behalf of your client, LG Electronics Vehicle Components USA.
The merchandise under consideration is identified as the DSC (Double Side Cooling) Power Module, which consists of a collection of insulated gate bipolar transistors (IGBTs), diodes, a thermal sensor, and electrical leads that are encapsulated into a molded module. The function of the DSC Power Module is to convert DC current into AC current through high-speed power switching. You state that the DSC Power Module is an inverter used to provide AC to an electric vehicle’s motor.
In your request, you suggest the DSC Power Module is classifiable under subheading 8504.40.4000, Harmonized Tariff Schedule of the United States (HTSUS). However, the information submitted in your request identifies the DSC Power Module as being used with a speed drive controller, but not the drive itself. In our view, the DSC Power Module’s singular function is to invert direct current to alternating current. While this current is supplied to a motor, there is no indication that the device has the ability to control the speed and/or direction of the motor, but merely acts as an inverter. As such, we disagree with your suggested classification.
The applicable subheading for the DSC Power Module will be 8504.40.9570, HTSUS, which provides for “Electric transformers, static converters and inductors…: Static converters: Other: Inverters.” 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 8504.40.9570, HTSUS, unless specifically excluded (see Chapter 99, Note 20 (ss)(40)), 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 8504.40.9570, 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, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at the following addresses:
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