CLA-2-76:OT:RR:NC:N5:113
Letian Wang
12515 Mooredale Lane Houston, TX 77024
RE: The tariff classification of a Generator Interlock Kit from China
Dear Mr. Wang:
In your letter dated November 8, 2024, you requested a tariff classification ruling. Product descriptions and pictures of the interlock kit were submitted for our review.
The subject product is identified as a Generator Interlock Kit, Model Number SQD 150200A. The kit includes an aluminum interlock plate, a steel drill bit, a polyethylene zip-tie, stainless steel bolts, stainless steel nuts, and an instruction sheet that are packaged together for retail sale at the time of importation into the United States. The interlock kit is described as a device that is designed to allow safe powering of a home by a portable generator during a power outage. You stated in your letter that “It is a less-expensive alternative to purchasing and installing a dedicated transfer switch. The kit achieves the same function by adding an external interlock onto an existing breaker panel that allows the main breaker to be turned on or one designated load breaker to be turned on, but not both at the same time. The interlocked load breaker is repurposed as the ‘backfeed’ breaker, and a generator is connected to it (wired directly or through a power inlet).” The Generator Interlock Kit is compatible with Square D QO or Homeline 150 or 200 amp panels and requires 1 3/8 inches in spacing between the main and generator circuit breakers.
The Generator Interlock Kit is composed of an interlock plate, a drill bit, zip-tie, bolts, nuts, and an instruction sheet that are classified in different headings. Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedules covers the items that comprise the Generator Interlock Kit in combination, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character.
Each interlock kit consists of at least two different articles that are classifiable in different headings. The kit consists of articles that are put up together to carry out a specific activity (i.e., allow powering of a home by a portable generator during a power outage) and are put up in a manner suitable for sale directly to users without repacking. Therefore, the subject kits are within the term "goods put up in sets for retail sale”. GRI 3(b) states in part that goods put up in sets for retail sale, which cannot be classified by reference to GRI 3(a), are to be classified as if they consisted of the component which gives them their essential character. Explanatory Note (EN) VIII to GRI 3(b) explains that “the factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or the use of the goods.” We must determine whether the interlock plate, drill bit, zip-tie, bolts, nuts, or instruction sheet imparts the essential character to the kit under consideration. It is the role of the constituent material or article in relation to the use of the good that imparts the essential character. In this case, the interlock plate is designed for installing the kit through the breaker panel and supporting the kit, and accounts for the majority of the bulk and weight of the kit. Therefore, it the opinion of this office that the plate imparts the essential character to the General Interlock Kit. In accordance with GRI 3(b), the Generator Interlock Kit will be classified in heading 7616, HTSUS, which provides for Other articles of aluminum.
The applicable subheading for the Generator Interlock Kit, Model Number SQD 150200A, will be 7616.99.5190, HTSUS, which provides for Other articles of aluminum: Other…Other. The rate of duty will be 2.5 percent ad valorem.
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.
Pursuant to U.S. Note 31 (b) to Subchapter III, Chapter 99, HTSUS, effective September 27, 2024, products of China classified under subheading 7616.99.5190, 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., 9903.99.03, in addition to subheading 7616.99.5190, 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/programs-administration/trade-remedies, respectively.
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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division