CLA-2-85:OT:RR:NC:N4:120
Timothy Weidner
General Electric
221 East 4th Street, 2nd Floor
Cincinnati, OH 45202
RE: The tariff classification of electrical protection systems from Canada
Dear Mr. Weidner:
In your letter dated October 22, 2015, you requested a tariff classification ruling.
The five items under consideration are referred to as the “750/760 Feeder Protection System,” the “745 Transformer Protection System,” the “469 Motor Protection System,” the “489 Generator Protection System,” and the “735/737 Feeder Protection System.” Each of the protection devices is said to be part of the “SR Family of Relays” and is specifically designed for a particular asset to which each is attached and is protecting. Examples of an asset listed in your request include, but are not limited to, industrial and utility protective systems for motors, generator systems, transformer systems, and electrical feeder systems.
While each of the SR Relay Systems is designed to monitor and protect a specific dedicated asset, they all perform the three primary functions of monitoring the asset’s vital statistics and electrical systems for certain fault conditions, quality and performance data logging, and providing electrical protection. Examples of fault conditions include temperature, vibration, pressure, quality of voltage and current, grounding, load unbalancing, et cetera.
The SR Relay Systems are configured according to the intended asset to be monitored. The devices are modular in design and incorporate a processor module, an input/output module, an analog module, all of which are mounted within the enclosure. Each unit is said to contain numerous relays, fuses, terminal blocks, contacts, and switches, that contribute to the unit’s intended purpose of electrical protection.
In use, the SR Relay Systems are connected to an asset to control and monitor. The units receive performance data and, via the installed proprietary software, provide power protection and control of electrical shutdown. When an environmental or performance condition exceeds the programmed parameters, the SR Relay System software issues a command to output relay to open the circuit breaker, thereby protecting the monitored asset by disconnecting power. The recorded data for the event can then be analyzed for troubleshooting or reporting purposes. The monitored asset can also be manually de-energized from the front panel or remotely by a connected controller or computer.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification is determined first in accordance with the terms of the headings of the tariff and any relative section or chapter notes. Although not dispositive, the Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs.
You offer three possible classifications for the SR Relay Systems: subheading 8536.49.0055, HTSUS, which provides for “Electrical apparatus for switching or protecting electrical circuits, or for making connections to or in electrical circuits …, for a voltage not exceeding 1,000 V; … : Relays: Other: With contacts rated at less than 10 A: Other”; subheading 9030.39.0100, HTSUS, which provides for “Oscilloscopes, spectrum analyzers and other instruments and apparatus for measuring or checking electrical quantities, excluding meters of heading 9028; instruments and apparatus for measuring or detecting alpha, beta, gamma, X-ray, cosmic or other ionizing radiations; parts and accessories thereof: Other instruments and apparatus, for measuring or checking voltage, current, resistance or power: Other, with a recording device”; and subheading 8537.10.9070, HTSUS, which provides for “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90,…: For a voltage not exceeding 1,000 V: Other: Other: Other.”
In regard to your suggested classification of the SR Relay Systems in subheading in 8536.49.0055, HTSUS, we disagree. The SR Relay Systems consist of electrical terminals, relays, control switches, and other electrical contacts that are housed within an industrial-type enclosure for the purpose of providing protection for electrical circuits. In this capacity, the SR Relay Systems are more appropriately described elsewhere and classification in heading 8536, HTSUS, is not appropriate.
In regard to your suggested classification of the SR Relay Systems in subheading 9030.39.0100, HTSUS, we disagree again. Although these SR Relay Systems may incorporate a device of heading 9030, HTSUS, they clearly perform a number of functions in addition to mere measuring and checking and meet the definition of an apparatus for electric control classified in heading 8537, HTSUS.
In regard to your suggested classification of the SR Relay Systems in subheading 8537.10.9070, HTSUS, we further disagree. The ENs, which describe programmable controllers, state in pertinent part that “Programmable controllers are digital apparatus using a programmable memory for the storage of instructions for implementing specific functions… to control… various types of machines.” While the SR Relay Systems do meet the terms of heading 8537, HTSUS, they are more specifically described as programmable controllers within that heading.
The applicable subheading for the SR Relay Systems will be 8537.10.9060, HTSUS, which provides for “Boards, panels, consoles, … and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, … : For a voltage not exceeding 1,000 V: Other: Other: Programmable controllers.” The general rate of duty will be 2.7 percent ad valorem.
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 World Wide Web at http://www.usitc.gov/tata/hts/.
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,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division