CLA-2-85:OT:RR:NC:N2:209
David Robeson
Mohawk Global Trade Advisors
123 Air Cargo Road North Syracuse, NY 13212
RE: The tariff classification of Gateway devices from France and China
Dear Mr. Robeson:
In your letter dated October 23, 2024, you requested a tariff classification ruling on behalf of your client, Calchip Connect.
The first item is the Browan Minihub Pro Gateway, part number GTW-000029-915, which has a country of origin of China. The Browan Minihub Pro Gateway functions as a Long Range Wide Area Network (LoRaWAN) gateway, providing connectivity for Internet of Things (IoT) devices. It serves as a bridge between devices like sensors and the internet.
The item measures approximately 90 mm x 80 mm x 40 mm, and weighs 200 grams. The item has a plastic enclosure, with built in LoRa and WiFi antennas. The unit has 8 channels and operates in mode: 802.11 b/g/client mode on a frequency band of 2.4Ghz.
As described, the gateway acts as a router, managing data between the IoT devices and the network but does not function as a modem, as it does not handle direct internet connections. This gateway is not merely a range extender; it acts as a device that directs the flow of data between end devices (LoRa sensors) and a network server over LoRaWAN. This gateway is needed to translate LoRaWAN packets into IP packets for communication with network servers over the Internet. The gateway device routes LoRaWAN data to the appropriate network server, ensuring data gets to the correct destination. The device does perform network address translation (NAT) and has routing tables and MAC address information for network traffic management.
The second item is the Kerlink Wirnet iFemtoCell, part number GTW-000014-915, which has a country of origin of France. This device is a gateway designed for LoRaWAN networks. It is designed for indoor environments and primarily used for smart buildings, smart cities, and industrial IoT.
The unit has an oval shape with an antenna attached, it measures approximately 160 mm x 90 mm x 35 mm, and weighs 163g. The unit has a white, plastic enclosure with an IP30 waterproof designation. The unit is designed to be wall or table mounted. It has a USB (type A) connector for configuration and an integrated Wi-Fi Antenna. It has backhaul connectivity for Wi-Fi 2.4 GHz and Ethernet (RJ45).
As described, this device uses Wi-Fi or Ethernet for backhaul connectivity to access a network. This particular device has a router function that manages packet routings between connected IoT devices and external networks. This device is able to track MAC addresses to identify and manage devices. This gateway is not merely a range extender; it acts as a device that directs the flow of data between end devices (LoRa sensors) and a network server over LoRaWAN. This gateway serves as a bridge between LoRa devices and a server. It forwards LoRaWAN packets to the network, making it more like a router than a modem. This gateway does translate LoRaWAN packets into IP packets for communication with network servers over the Internet. Also, the gateway routes LoRaWAN data to the appropriate network server, ensuring data gets to the correct destination. This unit does perform NAT and has routing tables and MAC address information for network traffic management.
The third item is the Tektelic KONA Micro IoT Gateway, part number GTW-000001-915, which has a country of origin of China. The KONA micro IoT Gateway is designed for enterprise and lightweight industrial applications that require “Always On” connectivity. Configured with an internal 3G/4G modem and a built-in battery backup, the KONA Micro IoT gateway continues to operate and transmits sensor data to the network even when the main site has lost power.
The unit is square-shaped and measures approximately 115 mm x 115 mm x 40 mm, and weighs 350g. It has a white, plastic enclosure with a IP30 waterproof designation. The item has two mounting holes for wall mounting and is intended for indoor use only. The device has the following interfaces: Ethernet RJ45, 12V / 1A adaptor, LoRa Antenna Port. It has an internal antenna for 3G/4G and LoRa Antenna SMA-RC. The unit has a four-hour battery backup. It has a multi-function LED that shows the operating status of the device. The unit is routinely powered by a 12 VDC power adaptor.
As described, this gateway translates LoRaWAN to IP protocol for cloud communications and routes data between the IoT and external networks. The device provides basic security features, but advanced security may require additional configuration. The unit does provide NAT to manage multiple device connections and includes routing and address tables. The device uses routing information to direct IP packets to their destination. The gateway forwards packets to a designated client/server based on network address. This gateway is not merely a range extender; it acts as a device that directs the flow of data between end devices (LoRa sensors) and a network server over LoRaWAN. This gateway serves as a bridge between LoRa devices and a server. The device forwards LoRaWAN packets to the network, which makes the device more like a router than a modem. This gateway is needed to translate LoRaWAN packets into IP packets for communication with network servers over the Internet. This gateway performs NAT. It also has routing tables and MAC address information for network traffic management.
You have proposed a classification within subheading 8517.62.0090, Harmonized Tariff Schedule of the United States (HTSUS), which provides in part for “Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network)…: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other.” As described, these particular devices act as network routers, used to direct network traffic and provide network management. As such, subheading 8517.62.0090, HTSUS, would not provide the most specific classification for such a device. It is the opinion of this office that subheading 8517.62.0090, HTSUS, is inapplicable.
The applicable subheading for the Browan Minihub Pro Gateway, part number GTW-000029-915, the Kerlink Wirnet iFemtoCell, part number GTW-000014-915, and the Tektelic KONA Micro IoT Gateway, part number GTW-000001-915 will be 8517.62.0020, HTSUS, which provides for “ Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Switching and routing apparatus” 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 8517.62.0020, 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., 9903.88.04, in addition to subheading 8517.62.0020, 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 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 Steven Pollichino at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division