CLA-2-85:OT:RR:NC:N1:120
Al Moon
Import / Export Compliance Analyst
Danfoss LLC
11655 Crossroads Circle
Baltimore, MD 21220
RE: The tariff classification of motor starters from New Zealand and Denmark
Dear Mr. Moon:
In your letter dated September 1, 2015, you requested a tariff classification ruling.
There are four items under consideration that are referred to as the MCD type Soft Starters (MCD-100, MCD-200, MCD-500, and MCD-3000), which are devices used to start and stop electric motors while providing overload protection. The MCD type Soft Starters consist of an enclosure containing a variation of controller circuit boards, a power supply, relays, circuit breakers, fuses, and various electrical components. The devices can be controlled remotely or from the front panel. Each of the MCD type Soft Starters has a similar core functionality with the difference between the models being their current handling capabilities and whether or not the devices can provide motor protection.
In use, each of these devices performs the role of controlling electric motor start and stop functions, for example, by delivering decreased current during startup to an electric motor in order to reduce damage by limiting overcurrent and excessive torque. Additional features include controlled slowdown and stopping of the motor, as well as controller feedback monitoring and data logging functions.
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 these motor starters: 8504.40.4000, HTSUS, which provides for “Static converters: Speed drive controllers for electric motors”; 8536.50.4000, 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 1000 V: Other switches: Motor starters"; and 8537.10.9060, HTSUS, which provides for “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of 8535 or 8536, for electric control or the distribution of electricity, … : For a voltage not exceeding 1,000 V: Other: Other: Programmable controllers.”
In regard to your suggested classification in heading 8504, HTSUS, as a “speed drive controller for electric motors,” we disagree. The information supplied indicates that these devices do not convert electrical current, therefore heading 8504, HTSUS, would be inapplicable. In addition, even if these devices incorporated an element of heading 8504, HTSUS, it is the opinion of this office that as a whole, these units perform functions beyond those covered within that heading.
In regard to your suggested classification in heading 8536, HTSUS, as a motor starter, we disagree again. The ENs to heading 85.36 states, in pertinent part: “The heading also excludes… Assemblies (other than simple switch assemblies) of the apparatus mentioned above (heading 85.37).” Thus, as the MCD type Soft Starters consist of an enclosure containing two or more of relays, switches, fuses, circuit breakers, and electrical controller boards, each being an apparatus provided for in heading 8536, HTSUS, classification in 8536.50.4000, HTSUS, is precluded.
In regard to your suggested classification in heading 8537, HTSUS, as a programmable controller, we further disagree. The ENs to heading 85.37 states, in pertinent part: ‘“Programmable controllers’ which are digital apparatus using a programmable memory for the storage of instructions for implementing specific functions such as logic, sequencing, timing, counting and arithmetic, to control, through digital or analog input/output modules, various types of machines.” The MCD type Soft Starters do not meet the terms noted in the ENs for 8537.10.9060, HTSUS, in that they do not feature a programmable memory for the storage of instructions to control, or for the distribution of power to, an electric motor; rather they are the devices that carry out the function of starting/stopping in a controlled fashion while providing a degree of overload protection.
The applicable subheading for the MCD type Soft Starters will be 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,…: For a voltage not exceeding 1,000 V: Other: Other: Other.” The 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