CLA-2-84:OT:RR:NC:N1:103
Michael K. Tomenga
Neville Peterson LLP
1400 16th Street, N.W.
Suite 350
Washington, DC 20036
RE: The tariff classification of an electric hot food dispensing machine from China
Dear Mr. Tomenga:
In your letter dated March 1, 2022, you requested a tariff classification ruling on behalf of your client, Automated Retail Technology, LLC.
The item under consideration is an electric hot food dispensing machine, model ART-Microwave-001, which can store up to 68 prepared food items. The items are moved, one at a time, to the oven element and re-heated before being dispensed. The primary components consist of a microwave oven, a cooling module, an LCD screen, a motherboard, a power supply, and fans. Also included are a lifting motor and coding disk assembly, a geared motor and encoder disk assembly, a microwave breaking motor, and two linear motors. The components are encased within a housing that measures approximately 48 inches wide by 79 inches high by 40 inches deep. In its imported condition, the unit is capable of dispensing hot food but lacks the capability to process credit cards for payment. In the United States, additional components are installed including a payment device, wireless router, quad band antenna, turn lock, and vending software. You state the unit will be placed in hotels, colleges, universities, arenas, hospitals, businesses, shopping malls, and other institutions to provide quick meal choices for customers that lack prepared food options.
In your request, you suggest the hot food dispensing machine is classified under subheading 8419.81.9040, Harmonized Tariff Schedule of the United States (“HTSUS”). Although we agree the hot food dispensing machine is classified in heading 8419, HTSUS, we disagree at the subheading level. The unit is not used in a hotel or restaurant for commercial food preparation. Instead, it refrigerates and heats food that has been prepared in advance and stages the items at a variety of locations.
The applicable subheading for the electric hot food dispensing machine will be 8419.81.9080, HTSUS, which provides for “Machinery, plant or laboratory equipment, whether or not electrically heated (excluding furnaces, ovens and other equipment of heading 8514), for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes; instantaneous or storage water heaters, nonelectric; parts thereof: Other machinery, plant or equipment: For making hot drinks or for cooking or heating food: Other: Other.” The rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8419.81.9080, 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 8419.81.9080, 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 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 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 Paul Huang at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division