OT:RR:CTF:EMAIN H330938 SKK
Center Director
Electronics Center of Excellence and Expertise
U.S. Customs and Border Protection
301 E. Ocean Blvd.
Suite 1400
Long Beach, CA 90802
ATTN: Ann Martines, Import Specialist
RE: Request for Internal Advice; Classification and applicability of Section 301 China products trade remedy; Electrical cable conductors
Dear Director:
This letter is in response to your request for Internal Advice (IA), dated March 10, 2023,
made pursuant to 177.11 of Title 19 of the Code of Federal Regulations (19 CFR 177.11). The IA request was initiated at the request of counsel on behalf of Voltage, LLC and concerns the tariff classification under the Harmonized Tariff System of the United States (HTSUS) of electrical cable conductors from China and applicability of Section 301 trade remedy on certain products of China. No sample was provided for examination.
FACTS:
The subject merchandise is comprised of wire cables (identified as 35kV MV-90 AL TRXLPE 100% INS LLDPE and 35kV MV-105 AL TRXLPE 100% INS XLPE) for use in electrical power transmission. The wires consist of a single conducting aluminum core encased in a "Concentric Neutral" (CN) conductor made up of helically-applied, annealed, solid bare copper wires that serve as insulating and strengthening materials. Counsel states the CN conductors are not used for electrical power transmission and only serve a protective and fault current carrying role. The specification sheet for "Aluminum Conductors" submitted by counsel for Voltage, LLC describes the subject merchandise as a compact stranded aluminum conductor (8000 series) with flame-retardant cross-linked polyethylene insulation. It is described as 2000V interconnection wiring for application in photovoltaic power systems and is cut to length in its condition as imported. Voltage, LLC sells the Aluminum Conductors on large spools of different sizes and lengths for use primarily in the solar power industry.
ISSUE:
Whether the subject merchandise falls within the scope of the Section 301 exclusion granted under U.S. Note 20(ttt)(ii)(28) to Chapter 99, HTSUS, and is thus eligible for classification under subheading 9903.88.67, HTSUS.
LAW AND ANALYSIS:
Classification under the HTSUS is in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods will be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If 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 be applied in order.
Heading 8544, specifically statistical reporting number 8544.60.6000, Harmonized Tariff System of the United States Annotated (HTSUSA), provides for "[I]nsulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors: Other electric conductors, for a voltage exceeding 1,000 V: Other: Other." Statistical reporting number 8544.60.4000, HTSUSA, covers electric conductors other than those fitted with connectors, of copper. The subject articles are electric conductors for a voltage exceeding 1,000 V and are not fitted with connectors. Although the cables incorporate some copper, they are not made "of copper" and the primary conducting material is aluminum. As such, the subject merchandise is classified under subheading 8544.60.6000, HTSUSA.
In September 2019, the U.S. Trade Representative (USTR), in consultation with the interagency Section 301 Committee, granted exclusions from Section 301 duties for numerous "List 2" products from China.[1] Those exclusions consisted of "89 specially prepared product descriptions" set forth in the Annex to the USTR's announcement, including certain types of electrical cable classified in subheading 8544.60.6000, HTSUSA. USTR subsequently reinstated this and other Section 301 tariff exclusions through a series of announcements, most recently for 352 separate products, through September 30, 2023.[2]
Chapter 99, Subchapter III, U.S. Note 20(ttt)(ii)(28) covers "[M]onopolar conductors for a voltage exceeding 1,000 V, other than of copper and not fitted with connectors (described in statistical reporting number 8544.60.6000)" and corresponds to subheading 9903.88.67, HTSUS. Accordingly, the subject electrical conductors classified in subheading 8544.60.6000, HTSUSA, are eligible for the Section 301 exclusion under subheading 9903.88.67, HTSUS, if they are (1) monopolar conductors, (2) for a voltage exceeding 1,000 V, (3) not made of copper, and (4) not fitted with connectors.
The first Section 301 exclusionary element requires that a qualifying electrical conductor be "monopolar." As this term is not defined in the HTSUS, we look to its common and commercial meaning. A monopolar conductor in a High Voltage Direct Current (HVDC) link is described as a single conductor with negative polarity in which power and current flow in one direction. See https://www.electricaldeck.com/2021/08/types-of-hvdc-systems-or-links.html (site last visited 28 February, 2024). The subject merchandise consists of a single cable with an aluminum conducting core that functions within a monopolar system to transmit power via a single phase and a single energized pole. The subject cables also feature CN conductors comprised of helically-applied, annealed, solid bare copper wires that encase the conducting aluminum core. The CN conductors serve a protective and fault current carrying role and, when not carrying a fault, they do not carry a current and are not used for electrical power transmission. As the subject wires are conductors comprised of a single cable of aluminum conducting core that functions within a monopolar system to transmit power via a single phase and a single energized pole, and the CN conductors do not serve as a conducting element, they are monopolar conductors within the common and commercial meaning of this term.
The remaining Section 301 exclusion criteria require that qualifying electrical cable conductors be for a voltage exceeding 1,000 V, not be made of copper, and not be fitted with connectors. The documentation submitted for the subject merchandise shows it having a voltage rating of over 1,000 V. It is further noted that although the subject cables incorporate copper elements, they are not made of all copper and their primary conducting medium is of aluminum. As such, the subject cables are not "of copper." Lastly, the submitted documentation describes the subject cables as imported on reels at very long lengths without connectors. Based on the foregoing, the subject electrical conductors fall within the scope of the exclusion set forth in Chapter 99, Subchapter III, U.S. Note 20(ttt)(ii)(28).
HOLDING:
By application of GRIs 1 and 6, the subject electrical conductors are classified under heading 8544, HTS, specifically statistical reporting number 8544.60.6000 HTSUSA, which provides for "[I]nsulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors: Other electric conductors, for a voltage exceeding 1,000 V: Other: Other." The applicable rate of duty is 3.2% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8544.60.60, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, importers of goods of China classified under subheading 8544.60.60, HTSUS, must also report the Chapter 99 subheading, i.e., 9903.88.02.
Chapter 99, Subchapter III, U.S. Note 20(ttt)(ii)(28) provides an exclusion for "[M]onopolar conductors for a voltage exceeding 1,000 V, other than of copper and not fitted with connectors (described in statistical reporting number 8544.60.6000)" and corresponds to subheading 9903.88.67, HTSUS. The subject electrical cable conductors meet the criteria set forth in the exclusion language and therefore qualify for the claimed exclusion and are eligible to be entered under subheading 9903.88.67, HTSUS, instead of subheading 9903.88.02.
As the HTSUS is subject to periodic amendment, reasonable care should be exercised in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china respectively.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the U.S. International Trade Commission's website at www.usitc.gov.
You are directed to mail this decision to the Internal Advice applicant no later than 60 days from the date of this letter. On that date the Office of Trade, Regulations and Rulings, will make the public version of the decision available to CBP personnel and to the public at www.cbp.gov by means of the Freedom of Information Act and by other methods of public distribution.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division
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[1] See 83 Fed. Reg. 49600, 49610 (Sept. 20, 2019).
[2] See 87 Fed. Reg. 17380, 17405 (Mar. 28, 2022) and 87 Fed. Reg. 78187, 78188 (Dec. 21,2022).