CLA-2-85:OT:RR:NC:N2:220
Jonathan Park
Jonathan & Associates CHB Services, Inc.
1501 E. Orangethorpe Ave. Suite 140
Fullerton, CA 92831
RE: The tariff classification and country of origin of a power supply
Dear Mr. Park:
In your letter dated May 28, 2025, you requested a tariff classification and country of origin ruling on behalf
of your client, Gigatera Communications.
The merchandise under consideration is identified as the SFP800 LED Sportlighting Driver (Driver), which is
described as a cast aluminum enclosure containing a switching mode power supply (SMPS), a surge
protection device (SPD), two electrical connectors, and electrical wires. In use, the Driver supplies DC
power to LED lighting systems by converting AC input voltage to a regulated DC output. The Driver has a
maximum output power of 800 W.
In your submission, you state that the subject Driver is assembled in Vietnam by mounting the Chinese origin
SMPS and SPD into the Vietnamese origin aluminum enclosure, attaching the German origin electrical
connectors, and attaching wires, gaskets, and plugs of various origins. The Driver is tested, calibrated, and
packaged for export to the United States.
Regarding the tariff classification of the Driver, the applicable subheading for the SFP800 LED Sportlighting
Driver will be 8504.40.9540, Harmonized Tariff Schedule of the United States (HTSUS), which provides for
Electrical transformers, static converters…: Static converters: Other: Rectifiers and rectifying apparatus:
Power supplies: Other. The rate of duty will be Free.
When determining the country of origin, the substantial transformation analysis is applicable. See, e.g.,
Headquarters Ruling Letter (“HQ”) H301619, dated November 6, 2018. The test for determining whether a
substantial transformation will occur is whether an article emerges from a process with a new name,
character, or use different from that possessed by the article prior to processing. See Texas Instruments Inc.
v. United States, 681 F.2d 778 (C.C.P.A. 1982). This determination is based on the totality of the evidence.
See National Hand Tool Corp. v. United States, 16 C.I.T. 308 (1992), aff’d, 989 F.2d 1201 (Fed. Cir. 1993).
Regarding the country of origin of Driver, in our view the assembly of the SMPS and SPD in Vietnam by
inserting and attaching with fasteners does not substantially transform the power supply and/or surge
protector into a new article in name or function. Furthermore, it is the opinion of this office that the SMPS
establishes the core function of the Driver because it is the article within the assembly that is converting and
supplying power to the LED system. As a result, the SFP800 LED Sportlighting Driver is considered a
product of China at the time of importation into the United States.
Effective March 4, 2025, pursuant to U.S. Note 2(u) to Subchapter III, Chapter 99, all products of China and
Hong Kong as provided by heading 9903.01.24, HTSUS, other than products classifiable under headings
9903.01.21, 9903.01.22, and 9903.01.23, HTSUS, will be subject to an additional 20 percent ad valorem rate
of duty. At the time of entry, you must report the applicable Chapter 99 heading, i.e. 9903.01.24, in addition
to subheading 8504.40.9540, HTSUS, listed above.
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. At the time of entry, you must report the
Chapter 99 heading applicable to your product classification, i.e. 9903.01.25, in addition to subheading
8504.40.9540, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under
subheading 8504.40.9540, 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 subheading 8504.40.9540, HTSUS, listed above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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 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, contact
National Import Specialist Karl Moosbrugger at [email protected].
Sincerely,
(for)
Steven A. Mack
Director
National Commodity Specialist Division