CLA-2-85:OT:RR:NC:N2:212
Ralph Sheppard
Meeks, Sheppard, Leo & Pillsbury LLP
570 Lexington Ave., 24th floor New York, NY 10022
RE: The tariff classification of a hybrid underwater cable from Greece
Dear Mr. Sheppard:
In your letter dated August 13, 2024, you requested a tariff classification ruling on behalf of your client, Revolution Wind, LLC.
The merchandise under consideration is described as a Submarine Inter-array Cable. The subject cable is constructed of three inner electrical conductors and two fiber optic cables enclosed within an outer protective shell. You state that the cables will be used to connect an off-shore wind site 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 cables.
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 cables occur 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/.
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 Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division