CLA-2 OT:RR:CTF:EMAIN H317391 JDK
TARIFF NO(s).: 8508.11.00; 8509.80.50; 9903.88.03; 9903.88.35
Port Director
United States Customs and Border Protection
Port of Buffalo
726 Exchange Street, Suite 400
Buffalo, NY 14210
Attn: Mr. Jason G. Schug, Import Specialist, Center of Excellence and Expertise: Consumer Products and Mass Merchandising
RE: Internal Advice Request; Tariff Classification and Section 301 Exclusion Eligibility of Certain Vacuums
Dear Port Director:
This is in response to a request for Internal Advice, filed by counsel on January 6, 2021 on behalf of Royal Appliance Mfg. Co. and Hoover Company LLP, both d/b/a TTI Floor Care North America (TTI Floor Care), pertaining to the classification of a variety of vacuum products under the Harmonized Tariff Schedule of the United States (HTSUS), as well as the applicability of the exclusions under Chapter 99, Subchapter III, U.S. Notes 20(nn)(13) and (14), HTSUS.
FACTS:
The subject merchandise can be described in two groups:
“Traditional” dry vacuums include the models listed below. They are all bagless, upright vacuum cleaners capable of operating in dry mode, have a self-contained electric motor of power not exceeding 1,500 W, and have a dust receptacle capacity not over 4 liters. These vacuum cleaners suction up dust and debris that is deposited into a receptacle while also filtering the air stream that is suctioned up to cool the motor of the product. Some models are specifically for hardwood floors, while others can be used on area rugs and carpeted floors. All subject products are for domestic use only.
Models: UH71200, UH71255, UH71235, UH70901PC, UH72405, UH72600W, UH72415, UH74100, UH70830, UH74200, UH70120, UH72625, UH74210, SH20030, BH50010, BH50020, UD70181, UH72400, UH71250, BH53310, BH53020, BH53120
Carpet cleaners include the models listed below. They are all bagless, upright, carpet cleaners that are 100% wet functional products that have a self-contained electric motor of power not exceeding 1,500 W and have a tank capacity not over 4 liters. These carpet cleaners include two tanks: one for clean water and cleaning solution, while the other is to deposit the dirty water. The carpet cleaners are designed to be used primarily on carpeted floors by injecting a cleaning solution and water into the carpet and then suctioning up the used cleaning solution and dirty water from the carpet. All subject products are for domestic use only.
Models: FH50134, FH50135, FH52004PC, FH52001, FH51001, 440013773, FH40150, FH40160, FH40163, FH50700, F5914901NC
These products are subject to Section 301 duties of 25 percent ad valorem, as they are classified under subheading 9903.88.03, HTSUS, and originate from China. However, the United States Trade Representative granted exclusions from the Section 301 duties for certain vacuum cleaner products. In TTI Floor Care’s submission, counsel suggests that the subject merchandise satisfies the exclusion provision for certain vacuum cleaner products, as published under the Federal Register Annex enumerations (13) and (14), specifically provided for under Section XXII, Chapter 99, Subchapter III U.S. Note 20(nn), HTSUS, as follows:
(nn) The U.S. Trade Representative determined to establish a process by which particular products classified in heading 9903.88.03 and provided for in U.S. notes 20(e) and (f) to this subchapter could be excluded from the additional duties imposed by heading 9903.88.03, and by which particular products classified in heading 9903.88.04 and provided for in U.S. note 20(g) to this subchapter could be excluded from the additional duties imposed by heading 9903.88.04. See 83 FR 47974 (September 21, 2018) and 84 FR 29576 (June 24, 2019). Pursuant to the product exclusion process, the U.S. Trade Representative has determined that the additional duties provided for in heading 9903.88.03 shall not apply to the following particular products, which are provided for in the enumerated statistical reporting numbers:
(13) Vacuum cleaners, bagless, upright, capable of operating in wet mode or dry mode, each with self-contained electric motor of a power not exceeding 1,500 W and having a tank capacity not over 4 liters (described in statistical reporting number 8508.11.0000).
(14) Vacuum cleaners, bagless, upright, each with self-contained electric motor of a power not exceeding 1,500 W and having a dust receptacle capacity not exceeding 1 liter (described in statistical reporting number 8508.11.0000).
TTI Floor Care claims that it is eligible to claim the secondary tariff number of subheading 9903.88.35, HTSUS, by virtue of falling under the scope of the above exclusions.
ISSUE:
Whether the subject vacuum products are classified as vacuum cleaners of heading 8508, HTSUS, or as carpet cleaners of heading 8509, HTSUS, and whether the subject products are eligible for duty-free treatment as provided by the secondary tariff number of subheading 9903.88.35, HTSUS.
LAW AND ANALYSIS:
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 will then be applied in order.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The HTSUS provisions in question is as follows:
8508 Vacuum cleaners; parts thereof:
With self-contained electric motor:
8508.11.00 Of a power not exceeding 1,500 W and having a dust bag or other receptacle capacity not exceeding 20 L….
* * *
8509 Electromechanical domestic appliances, with self-contained electric motor, other than vacuum cleaners of heading 8508; parts thereof:
8509.80 Other appliances:
8509.80.50 Other….
As heading 8509, HTSUS, expressly covers goods “other than vacuum cleaners of heading 8508, HTSUS,” the first issue before us is whether the instant merchandise is covered by the scope of heading 8508, HTSUS.
The ENs to heading 85.08 state, in relevant part, that:
Subject to Note 1 (d) (Vacuum apparatus of a kind used in medical, surgical, dental or veterinary sciences (heading 9018)) to Chapter 85, this heading covers vacuum cleaners of all kinds, whether or not hand-held, including dry and wet vacuum cleaners, whether or not presented with accessories such as rotary brushes, carpet beating devices, multiple-function suction heads, etc.
Vacuum cleaners perform two functions: the suction of material, including dust, and the filtering of the air stream. Suction is effected by means of a turbine fixed directly onto the shaft of the motor, turning at high velocity. The dust and other material are collected in an internal or external dust bag or other receptacle, whereas the air sucked in and filtered is also used to cool the motor.
* * * * *
Excluded from this heading are appliances for cleaning carpets in situ by injecting a liquid cleaning solution into the carpet, the solution then being extracted by suction, which are not combination dry and wet vacuum cleaners (heading 84.51 or 85.09).
The traditional vacuum cleaners are all dry functioning products that do not use any sort of liquid to operate. The products contain an electric motor for power and use suction to remove dirt or debris from surfaces. The vacuum cleaner products include a receptacle for dust and debris that is collected, while air that is suctioned up flows through the products to cool the motors. Therefore, the subject vacuum cleaner products are provided for by the terms of heading 8508, HTSUS, and further supported by EN 85.08, supra.
The carpet cleaners have an electric motor that is cooled by filtered air, are capable of suction, and have a receptacle to collect suctioned up water. The carpet cleaners are 100% wet functioning products that are designed to inject cleaning solution and clean water into soiled or stained carpet, then suction up the used cleaning solution and dirty water from the carpet. EN 85.08, supra, provides that appliances that inject liquid cleaning solution into carpet that is then extracted by suction, are not vacuum cleaners. Therefore, these products are not vacuum cleaners of heading 8508, HTSUS, but rather electromechanical domestic appliances of heading 8509, HTSUS.
The second issue in this matter is whether the subject traditional vacuum cleaner products and carpet cleaners are described by the terms of U.S. Notes 20(nn)(13) and (14) and qualify for the exclusion under 9903.88.35, HTSUS. Models UH71200, UH71255, UH71235, UH70901PC, UH72405, UH72600W, UH72415, UH70830, UH74200, UH70120, UH72625, UH74210, SH20030, BH50010, BH50020, UD70181, UH72400, UH71250, BH53310, BH53020, and BH53120 are all bagless, upright vacuum cleaners capable of operating in dry mode, have a self-contained electric motor of power not exceeding 1,500 W, and have a tank capacity not over 4 liters. Models BH53310, BH53020, and BH53120 can all be categorized as “stick vacs” capable of functioning in a dry mode. They are all bagless, upright, vacuum cleaners with a self-contained electric motor of power not exceeding 1,500 W, and they have a tank capacity not over 4 liters. The stick vacs also have a dust receptacle capacity not exceeding 1 liter (receptacle sizes are 0.6L, 0.4L, and 0.92L respectively).
Based on the specifications provided by TTI Floor Care, the subject products of the first category that are considered traditional vacuum cleaner products, are described by subheading 8508.11.00, HTSUS, and meet the exclusion terms of U.S. Note 20(nn)(13), while Models BH53310, BH53020, and BH53120 also meet the exclusion terms of U.S. Note 20(nn)(14).
Based on the specifications provided by TTI Floor Care, the remaining products, i.e., those in the second category that are considered carpet cleaner products, are classified under subheading 8509.80.50, HTSUS, and do not meet the exclusion terms of either U.S. Note 20(nn)(13) or U.S. Note 20(nn)(14).
HOLDING:
By application of GRIs 1 and 6 the subject traditional dry vacuum cleaners are classified in heading 8508, HTSUS, and specifically provided under subheading 8508.11.00, HTSUS, which provides for, “Vacuum cleaners; parts thereof: With self-contained electric motor: Of a power not exceeding 1,500 W and having a dust bag or other receptacle capacity not exceeding 20…” The general column one rate of duty is free.
By application of GRIs 1 and 6 the subject carpet cleaners are classified in heading 8509, HTSUS, and specifically provided under subheading 8509.80.50, HTSUS, which provides for, “Electromechanical domestic appliances, with self-contained electric motor, other than vacuum cleaners of heading 8508; parts thereof: Other appliances: Other…” The general column one rate of duty is 4.2 percent.
All subject merchandise described as traditional vacuum cleaners are accurately described under U.S. Notes 20(nn)(13), while a few subject traditional vacuum cleaner models are also accurately described under U.S. Notes 20(nn)(14). Thus, all subject vacuum cleaner products fall under the scope of the exclusions under subheading 9903.88.35, HTSUS.
None of the subject merchandise described as carpet cleaners fall under the scope of the exclusions under subheading 9903.88.35, HTSUS, and are thus not eligible for duty-free or reduced duty treatment. Such merchandise is properly classified under subheading 9903.88.03, HTSUS, and is subject to the additional 25 percent duty.
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 internet at https://hts.usitc.gov/current.
You are to provide this decision to the internal advice requester no later than 60 days from the date of the decision. At that time, the Office of International Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the CBP Home Page at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division