CLA-2-85:OT:RR:NC:N2:212
Andrea Abraham
Meeks, Sheppard, Leo & Pillsbury
570 Lexington Ave., 24th floor New York, NY 10022
RE: The tariff classification of a submarine cable from the United Kingdom
Dear Ms. Abraham:
In your letter dated January 31, 2023, you requested a tariff classification ruling on behalf of your client, Jan De Nul US, LLC.
The merchandise under consideration is described as a submarine inter-array cable. The subject cable is constructed of three inner electrical conductors and a fiber optic cable enclosed within an outer protective shell. You state that the cables will be used to connect an off-shore wind farm to an on-shore substation. The cables will transmit the power generated by the wind turbines through the electrical conductors as well as all necessary monitoring and control data via the optical cable.
In your request, you suggest that the correct classification for the subject cables is 8544.70.0000, Harmonized Tariff Schedule of the United States (HTSUS). We agree.
The General Rules of Interpretation (GRIs) of the HTSUS, when taken in numerical order, set forth the official guidance for classifying merchandise as it enters the US. GRI 1 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. Goods that are, prima facie, classifiable under two or more headings, are classifiable in accordance with GRI 3, HTSUS.
GRI 3(a) states, in part, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods, those headings are to be regarded as equally specific, even if one heading gives a more precise description of the good. Goods classifiable under GRI 3(b) are classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article. GRI 3(c) provides that when goods cannot be classified by reference to GRI 3(a) or 3(b), they are to be classified in the heading that occurs last in numerical order among those which equally merit consideration.
In our view, the subject cables meet the definition of a composite good as it contains both electrical conductors and fiber optic cables. Further, it is our opinion that neither of these elements impart the essential character of the finished item as both are critical to the expected end use. After a review of the competing subheadings, we have determined that the fiber optic cable occurs last in numerical order.
The applicable subheading for the submarine inter-array cable will be 8544.70.0000, HTSUS, which provides for “Insulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors: Optical Fiber cables.” The general rate of duty will be free.
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 at https://hts.usitc.gov/current
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division