CLA-2 CO:R:C:M 951711 DWS
District Director
U.S. Customs Service
Lincoln Juarez Bridge, Bldg. #2
P.O. Box 3130
Laredo, TX 78044-3130
RE: IA 69/91; Transformers; Rated vs. Unrated; HQ 081407;
8504.31.20
Dear Sir:
This is in response to your memorandum of November 26, 1991,
requesting internal advice, on behalf of John Cain, customs
broker, concerning the tariff classification of transformers
under the Harmonized Tariff Schedule of the United States
(HTSUS).
FACTS:
The merchandise consists of transformers, designed for use
in computer power supplies. The transformers are built to
customer specifications and are designed to operate at under 1
kVA (voltage-amperes). Power ratings are not provided by the
customers, but they do specify the wire size and number of turns
needed to create a customized transformer.
ISSUE:
Whether the subject transformers are classifiable as "rated"
or "unrated" under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in
accordance with the General Rules of Interpretation (GRI's),
taken in order. GRI 1 provides that classification is determined
according to the terms of the headings and any relative section
or chapter notes.
Subheading 8504.31.20, HTSUS, provides for: "[electrical
transformers, static converters and inductors: [o]ther
transformers: [h]aving a power handling capacity not exceeding
1 kVA: [u]nrated." Subheading 8504.31.40, HTSUS, provides for:
"[o]ther transformers: [h]aving a power handling capacity not
exceeding 1 kVA: [o]ther."
It is claimed that the transformers are unrated and,
therefore, are classifiable under subheading 8504.31.20, HTSUS.
The importer argues that "[o]ur transformers are under 1 kVA and
are unrated by generally recognized industry definition. Rated
transformers have the ratings on the labels and indicate the
input/output voltage that gives you the rating. . . . None of
our labels specify the input/output."
HQ 081407, dated November 23, 1990, dealt with the issue of
whether certain ignition transformers were classifiable as
"rated" or "unrated" under the Tariff Schedules of the United
States (TSUS). It was ruled that:
[c]ustoms has long held that transformers may not be
regarded as unrated if they are of a class or kind which
are rated or are for uses in power circuits where the
capacities of the transformers must be known even if they
are not included on any labels. Currently, signal
transformers and current transformers (that work as
circuit breakers or large power transformers) are the only
types of transformers that have been found by Customs and
the Courts to be unrated.
It is our position that, under the reasoning in HQ 081407,
the subject transformers are rated. They are of a class or kind
of transformers which are rated. In fact, the importer both
acknowledges that the power capacities of the subject
transformers do not exceed 1 kVA, and includes, in supplied
specifications, power capacity ratings. It is not essential to
the classification of the transformers that their power
capacities be included on their labels.
As stated, the importer does provide that part no. BE24514-
001 is rated at 400 W, and part no. BE2414 9-001 is rated at 315
W. Measurement in watts is calculated by multiplying voltage by
amperes. Therefore, by using this formula, the transformers are
rated under 1 kVA.
HOLDING:
The subject transformers are rated and, therefore, are
classifiable under subheading 8504.31.40, HTSUS. The general,
column one rate of duty is 6.6 percent ad valorem.
Sincerely,
John Durant, Director
Commercial Rulings Division