CLA-2-84:OT:RR:NC:N1:102
Angel Escamilla
Amfas International
1661 International Drive, Suite 400
Memphis, TN 38120
RE: The tariff classification of a leak detection system from Mexico
Dear Mr. Escamilla:
In your letter dated May 2, 2025, you requested a tariff classification ruling. Descriptive information was
provided in the submission.
The Floodstop Leak Detection System is referred to as a point-of-use leak detection and water shut-off
system. The system is used in residential and commercial environments, and is installed in water supply
systems of water heaters, washing machines and dishwashers. The system is comprised of sensors, a
motorized ball valve, a control unit, and a power supply, all of which are packaged together ready for retail
sale. In use, the electronic sensors detect the presence of surface moisture, indicating a water leak. Once the
control unit processes the signals and the presence of moisture is confirmed, the valve is activated, which
automatically shuts off the water supply.
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is made in accordance
with the General Rules of Interpretation (GRIs). The Explanatory Notes, which constitute the official
interpretation of the HTSUS at the international level, state in Note (X) to GRI Rule 3 (b) that the term
“goods put up in sets for retail sale” means goods that: (a) consist of at least two different articles which are,
prima facie, classifiable in different headings; (b) consist of articles put up together to meet a particular need
or carry out a specific activity; and (c) are put up in a manner suitable for sale directly to users without
repacking.
In our opinion, the packaged items meet the criteria for sets as defined in the cited Explanatory
Note. Therefore, for the purpose of the HTSUS, the system constitutes a set.
In having concluded that the items of the system constitute a set for classification purposes, we must
determine the essential character. According to the Explanatory Note to GRI 3(b), essential character may be
determined by the nature of the material or component, its bulk, quantity, weight, value, or by the role of the
constituent material in relation to the use of the goods.
In your letter, you suggest the sensors impart the essential character of the Floodstop system and suggest the
system is classified in subheading 9032.89.6060, HTSUS, which provides for “Automatic regulating or
controlling instruments and apparatus; parts and accessories thereof: Other instruments and apparatus: Other:
Other: Process control instruments and apparatus: Other: Flow and liquid level control instruments.” We
disagree. In order to be classified in heading 9032, HTSUS, it must meet the terms of Note 7 to Chapter 90.
In our opinion, the Floodstop does not automatically regulate the flow of water. Instead, it utilizes a sensor to
determine if there is a leak and subsequently can turn the water off by means of a valve. The user would then
have to manually fix the leak before resetting the system. The Floodstop system is not regulating the flow of
water by monitoring the pressure or level and opening and closing a valve to maintain a certain flow of water.
Therefore, heading 9032, HTSUS is excluded from consideration.
You also suggest the Floodstop system should be classified in subheading 9026.10.5000, HTSUS, which
provides for “Instruments and apparatus for measuring or checking the flow, level, pressure or other variables
of liquids or gases (for example, flow meters, level gauges, manometers, heat meters), excluding instruments
and apparatus of heading 9014, 9015, 9028 or 9032; parts and accessories thereof: For measuring or checking
the flow or level of liquids: Electrical: Other.” We disagree. The Floodstop’s leak sensor is only sensing
whether water is present to determine if there is a leak. It is not measuring or checking the flow or level of
liquids. Leak sensors that only have the ability to sense if water is present and not provide measurable
readings have historically been classified in Chapter 85 and not in heading 9026, HTSUS. Therefore, heading
9026, HTSUS, is also excluded from consideration.
We believe the ball valve imparts the essential character of the Floodstop Leak Detection System, when
considering its role in relation to the use of the system. The function of the system is to prevent water
damage, and while the sensors and control unit contribute to the process, it is the valve’s stoppage of water
flow that prevents the physical water damage. Accordingly, the ball valve, which is classified within heading
8481, imparts the essential character of the set.
The applicable subheading for the Floodstop Leak Detection System will be 8481.80.9025, HTSUS, which
provides for Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like,
including pressure-reducing valves and thermostatically controlled valves; parts thereof: Other appliances:
Other: Other: With electrical or electro-hydraulic actuators: Other. The general rate of duty will be 2 percent
ad valorem.
Products of Mexico as provided by heading 9903.01.01 in Section XXII, Chapter 99, Subchapter III, U.S.
Note 2(a), HTSUS, other than products classifiable under headings 9903.01.02, 9903.01.03, 9903.01.04, and
9903.01.05, HTSUS, will be subject to an additional 25 percent ad valorem rate of duty. At the time of entry,
you must report the applicable Chapter 99 heading, i.e. 9903.01.01, in addition to subheading 8481.80.9025,
HTSUS, listed above. Articles that are entered free of duty under the terms of general note 11 to the HTSUS
(U.S.-Mexico-Canada Agreement (USMCA)), including any treatment set forth in subchapter XXIII of
Chapter 98 and subchapter XXII of chapter 99 of the HTSUS, will not be subject to the additional ad valorem
duties provided for in heading 9903.01.01. If your product is entered duty free as originating under the
USMCA, you must report heading 9903.01.04, HTSUS, in addition to subheading 8481.80.9025, HTSUS.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must
be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries
will be subject to an additional 10 percent ad valorem rate of duty. Your product falls within an excepted
subheading. At the time of entry, you must report the Chapter 99 heading applicable to your product
classification, i.e. 9903.01.27, in addition to subheading 8481.80.9025, HTSUS, listed above.
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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division