CLA-2-84:OT:RR:NC:N1:104

Edward Juliano, Jr.
Edward F. Juliano, Jr. - Attorney at Law
303 Wyman Street, Suite 300
Waltham, MA 02451

RE: The tariff classification of an EUV lithography system drive laser module from Germany

Dear Mr. Juliano:

In your letter dated June 20, 2025, on behalf of your client, ASML US, LLC, you requested a tariff classification ruling.

At issue are various units and equipment for ASML’s NXE 3800E EUV (Extreme Ultraviolet) semiconductor lithography system, which you state will be imported together and constitute the lithography system’s Drive Laser Module. These attached or interconnected units and equipment consist of: radio-frequency (RF) power amplifiers; seed laser module; beam transport system periscope; power distribution system; control cabinet (electric); gas supply system; and cooling system. Also included in the shipment will be certain pre-install items, namely electrical and data cables, hoses for gas supply and cooling, and seismic connectors and vibration dampers.

The drive laser is a key component of the EUV lithography system’s Light Source module in that it initiates the process of generating EUV light. The drive laser uses the seed laser module and RF power amplifiers to produce high energy pulses that are sent through the beam transport system from the sub-fab up through the floor of the clean room to the Light Source’s main module. The Light Source is where the pulses of high energy generated by the drive laser strike droplets of tin, creating a plasma that emits light in the nanometer range. The “periscope” part of the beam transport system contains the mirrors, motors, and other optical elements that allows the high energy pulses to make a 90-degree turn from the Drive Laser Module to the Light Source main module.

You suggest that the imported Drive Laser Module equipment constitutes a “functional unit” within the meaning of Section XVI Note 4, Harmonized Tariff Schedule of the United States (HTSUS), and should therefore be classified together as a single machine in subheading 8486.20.0000, HTSUS, providing for “Machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in note 11(C) to this chapter; parts and accessories: Machines and apparatus for the manufacture of semiconductor devices or of electronic integrated circuits.” In support of your position, you cite New York Ruling (NY) N336802, dated Dec. 21, 2023, which determined that a EUV wafer handling module comprised of a FOUP loading dock, atmospheric wafer handler, and a vacuum wafer handler, imported together, to be classified in subheading 8486.40.0030, HTSUS, as a functional unit under Section XVI, Note 4.

Section XVI, Note 4 provides that a combination of machines with individual components, whether separate or interconnected, that are intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, are to be classified as a functional unit in the heading appropriate to that clearly defined function.

We disagree that the imported equipment, which you collectively refer to as the Drive Laser Module, contributes together to a clearly defined function covered by a heading in Chapter 84 or 85. Rather, this equipment is an integral component of the Light Source. In NY N241695, dated June 6, 2013, we considered the classification of both a complete and incomplete Cymer EUV Light Source for a lithography system. Notably, both the incomplete and complete imported Light Source included a “drive laser” and “beam transport system,” among other components. CBP rejected Cymer’s claim that both the complete and incomplete Light Sources were classified as independent “machines” covered by subheading 8486.20.0000. CBP instead determined that the Light Source (whether complete or incomplete) was classifiable as “part” of the lithography system, and properly classified in subheading 8486.90.0000, HTSUS. In the present case, the Drive Laser Module, which includes the beam transport system, RF amplifiers, seed laser module, and supporting power systems, is essentially a subcomponent or subpart of the Light Source, itself a part, rather than a combination of machines with a clearly defined function covered by HTSUS Chapter 84 or 85. Therefore, they do not constitute a functional unit under Section XVI, Note 4.

N336902 is inapposite as the clearly defined function of the three units of the module addressed by that ruling are specifically covered in subheading 8486.40.0030, i.e., lifting, handling, and loading of semiconductor wafers. In contrast, the imported Drive Laser Module with its associated units and parts do not have a clearly defined function covered by either Chapter of Section XVI.

In sum, the imported Drive Laser Module equipment is essentially a subcomponent or subassembly of a complete Light Source, which itself is a part of the lithography system as per N241695. Accordingly, the imported equipment, entered together, constitutes a part of the NXE 3800E EUV lithography system, which is classifiable in heading 8486.

The applicable subheading for the Drive Laser Module, imported together and configured with the components and pre-install equipment described above, will be 8486.90.0000, HTSUS, which provides for parts of machines and apparatus of a kind used solely or principally for the manufacture of semiconductor boules or wafers, semiconductor devices, electronic integrated circuits or flat panel displays; machines and apparatus specified in note 11(C) to this chapter. The general rate of duty will be free.

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. 9903.01.32, in addition to subheading 8486.90.0000, 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 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 Arthur Purcell at [email protected].
Sincerely,

(for)
James Forkan
Acting Director
National Commodity Specialist Division