CLA-2-84:OT:RR:NC:N1:102
Jonathan Torres
Danby Product LTD
5070 Whitelaw Road Guelph N1H6Z9 Canada
RE: The tariff classification of MicroFridge appliances from China
Dear Mr. Torres:
In your letter dated March 6, 2024, you requested a tariff classification ruling.
The merchandise under consideration is referred to as a MicroFridge. The MicroFridge is available in various models, and is a tiered appliance that will be imported as an unassembled refrigerator and a microwave oven. The microwaves are available in black or white, and feature a built-in smoke detector, a USB plug, and a SafePlug power system from which the refrigerator receives power. The refrigerators, which are also available in black or white, feature a single or double door, in which one door is a closure for the freezer section. Once the microwaves and refrigerators are imported, the microwaves are mounted onto the refrigerators using the designated bracket. The three respective components will be imported in three separate boxes labeled Box 1, 2 and 3 of 3 that will be housed in a container that accommodates a corresponding number of microwaves, fridges and mounting brackets. The MicroFridge is marketed to assisted living residences, colleges, universities, offices, etc.
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the principles set forth in the General Rules of Interpretation (GRIs) taken in order. GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If the goods cannot be classified solely based on GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
GRI 2(a) states as follows: Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level (for the 4-digit headings and the 6 digit subheadings) and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and GRIs. While neither legally binding nor dispositive of classification issues, the ENs provide commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
Regarding GRI 2(a), EN V, which concerns Articles presented unassembled or disassembled, states the second part of Rule 2(a) provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling, or transport. Here, the unassembled components are intended to complete the MicroFridge, a composite machine that consists of a microwave that heats and a refrigerator that cools employing a compressor.
In your letter you suggest that the combination appliances are classified within subheading 8516.50, HTSUS, which provides for microwave ovens. We disagree. CBP previously reviewed similar merchandise in New York ruling N008200 (dated April 3, 2007) and applying Note 3 to Section XVI, determined that the principal function of the composite machine was completed by the refrigerator. This office believes the same rational applies here. The fact that the microwaves now have features related to power usage and smoke detection does not minimize the role of the refrigerating function. By application of Section XVI, Note 3, the combination appliance is a composite machine classified by its principal function, which we find is the function of the refrigerator.
Accordingly, the applicable subheading for the MicroFridge with a separate door for the freezer that has refrigerated volume of under 184 liters will be 8418.10.0010, HTSUS, which provides for 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 thereof: Combined refrigerator-freezers, fitted with separate external doors or drawers, or combinations thereof: Compression type: Having a refrigerated volume of under 184 liters. The rate of duty will be Free.
The applicable subheading for the MicroFridge with a separate door for the freezer that has refrigerated volume of 269 liters but under 382 liters will be 8418.10.0030, HTSUS, which provides for 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 thereof: Combined refrigerator-freezers, fitted with separate external doors or drawers, or combinations thereof: Compression type: Having a refrigerated volume of 269 liters and over but under 382 liters. The rate of duty will be Free.
For the MicroFridge products with a single door, it is recognized that the MicroFridge products are marketed to colleges, universities, offices, etc. However, in determining whether the principal use of a product is for non-domestic use, CBP considers a variety of factors, including general physical characteristics, expectation of the ultimate purchaser, channels of trade, environment of sale (accompanying accessories, manner of advertisement and display), use in the same manner as merchandise which defines the class, economic practicality of so using the import, and recognition in the trade of this use.See United States v. Carborundum Co., 63 C.C.P.A. 98, 102, 536 F.2d 373, 377 (1976).
In reviewing the information provided for the refrigerator models with a single door, there is no indication that these refrigerator models are not of a household type based on their size, material composition, the type of Underwriters Laboratories labeling applied, the refrigeration volume, and in recognizing that the environment of sale is not exclusive to non-domestic environments. Moreover, CBP has previously classified similar compact refrigerators with a single door as domestic refrigerators within subheading 8418.21. See New York ruling K88972, dated August 30, 2004.
Accordingly, the applicable subheading for the MicroFridge with a single door that features a refrigerated volume of under 184 liters will be 8418.21.0010, HTSUS, which provides for 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 thereof: Refrigerators, household type: Compression type: Having a refrigerated volume of under 184 liters. The rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 8418.10.0010, 8418.10.0030, and 8418.21.0010, 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 subheadings 8418.10.0010, 8418.10.0030, and 8418.21.0010, 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 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 at https://hts.usitc.gov/.
The shelves and racks imported with or separate from the refrigerators may be subject to anti-dumping and/or countervailing duties (AD/CVD) for Certain Kitchen Appliance Shelving and Racks from China (A570941, C570942). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce (ITA) and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). General information regarding the ITA and AD/CVD can be found at https://www.trade.gov/us-antidumping-and-countervailing-duties. The ITA's Guide on How to File for an Antidumping/Countervailing Duty Scope Ruling Request is available at https://enforcement.trade.gov/scope/Request-Scope-Ruling.pdf
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division