CLA-2-84:OT:RR:NC:N1:102
Mr. Steve Hookey
FedEx Trade Networks
7075 Ordan Drive
Mississauga, Ontario L5T 1K6
Canada
RE: The tariff classification of a cooling module.
Dear Mr. Hookey:
In your letter you requested a tariff classification ruling for a cooling module.
The 900-00450 Rack Direct Contact Liquid Cooling (DCLC) Cadence Air Heat Exchange (AHx) Silvertip Module is a liquid cooling device. It is designed for use with a commercial data center and can be used in a “top of the rack” or a “in-rack” configuration. The module consists of a fan, centralized pumps, a control/monitoring system, a leak detection/migration system and a 4.3” LCD touch screen. While in operation, coolant is pumped through the tubes of the unit. This absorbs heat from the data center and coupled with the fan, results in a cooling process.
The classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation ("GRIs"), taken in order. GRI 1 requires that classification be determined according to the terms of the headings and any relative section or chapter notes.
In your letter you suggest classification of the 900-00450 Rack Direct Contact Liquid Cooling (DCLC) Cadence Air Heat Exchange (AHx) Silvertip Module under heading 8473, HTSUS, as "parts and accessories of the machines of heading 8471” because the Cadence Data Center is classified under heading 8471. Note 2 to Section XVI, HTSUS, directs that "parts which are goods included in any of the headings of chapter 84 or 85 are in all cases to be classified in their respective headings." Therefore, heading 8473 is not appropriate.
Heading 8419 specifically provides for non-domestic machinery whether or not electrically heated that is used for the treatment of materials by a process involving a change of temperature, such as cooling. The AHx Silvertip module is designed to cool a data center, a process completed by a liquid that absorbs heat and a fan.
As such, the applicable subheading for the 900-00450 Rack Direct Contact Liquid Cooling (DCLC) Cadence Air Heat Exchange (AHx) Silvertip Module will be 8419.89.9540, HTSUS, which provides for machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change of temperature: designed for cooling: other. The general rate of duty will be 4.2 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 https://hts.usitc.gov/current.
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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division