CLA-2-90:OT:RR:NC:N4:414
Mr. Aaron Marx
Crowell & Moring LLP
1001 Pennsylvania Ave. NW
Washington, DC 20004
RE: The tariff classification of components of an astronomical observatory from various countries
Dear Mr. Marx:
In your letter dated March 9, 2017 you requested a tariff classification ruling on behalf of TMT International Observatory LLC.
TMT is a nonprofit organization founded by the Association of Canadian Universities for Research in Astronomy, the University of California, and the California Institute of Technology, in order to design and construct a thirty meter optical telescope. As part of this project, TMT intends to import various items including an Astronomical Observatory with a Calotte Dome, an Infrared Imaging Spectrograph Laboratory Cooling Unit, the Polished Mirror Assembly (telescope mirror segments with segment support assemblies), Polished Mirror Assembly Kits (segment support assemblies without mirror segments attached) and an Infrared Imaging Spectrograph Image Slicer.
The Astronomical Observatory with a Calotte Dome is the observatory enclosure structure which will house TMT’s telescope. Through an aperture in the ceiling dome, the telescope has exposure to the surrounding sky. The primary use of the enclosure is the protection of the telescope housed within. In addition, the enclosure is designed to mitigate the impact of temperature fluctuations due to internal and external environmental conditions. The structural components of the enclosure will be shipped as individual pieces over a period of three years and will be manufactured in multiple factories.
The Laboratory Cooling System (LCS) is housed in a cabinet and has various hoses that connect to the Infrared Imaging Spectrograph (IRIS) for the purpose of cycling coolant. The cooling system applies cryo-cooling principles and attains a temperature range of 40 to 60 Kelvin. Based on the information provided, the purpose of the instant system is to cool using a refrigeration process.
The Polished Mirror Assembly (“PMA”) will be comprised of 492 independent glass segments which are permanently assembled with a Segment Support Assembly (“SSA”). The SSA is a multi-point, passive, near-kinematic system of levers and flexures used to support the glass segments comprising the primary mirror. There are 21 actuators incorporated as part of the SSA and they are in place at the time of importation. The primary materials used in the SSA are aluminum and stainless steel.
According to your letter, the SSAs may also be imported without the mirrors attached.
The Image Slicer for an Infrared Imaging Spectrograph is comprised of 88 mirrors. The mirrors will be made of either glass or metal; the composition has not yet been determined. The mirrors will be polished and arranged to exact specifications to receive and process images gathered by the telescope. At the time of importation, the mirrors are arranged in a box which serves as the mounting for the mirrors. Each mirror is aligned precisely in the box, and will be immovable once inserted. After importation, the Image Slicer will be housed within a dewar that is attached to the thirty meter telescope. The dewar is manufactured in the United States and will not be imported with the image slicer.
Regarding the Astronomical Observatory with Calotte Dome, you propose classification under heading 7308, HTSUS, which provides in pertinent part for structures and parts of structures of iron or steel. However, you state in your letter that multiple shipments will be used to import the Astronomical Observatory with Calotte Dome and components over a period of three years. Your inquiry does not provide enough information for us to issue a classification ruling on these articles.
Regulations covering a single entry/multiple shipments scenario are found in 141.58, Customs Regulations (“CR”). Points covering in 141.58, CR, include application procedures and the time limits for the arrival dates. In particular, please note 148.58(i): “When separate entry and entry summary required” which states:
When all portions of an entity do not arrive at the port of entry within the time constraints of paragraphs (b)(4)(i) and (ii) of this section, as applicable, a separate entry and entry summary must be filed for each portion that has already arrived, and for each portion that subsequently will arrive on separate conveyances. The merchandise included on each separate entry shall be classified in its condition as imported. Each entry would reflect the quantities, values, classification and rates of duty, as appropriate, of the various components conveyed in each shipment, and not the value or classification of the ordered single entity.
As guidance, however, we note that the submitted documentation indicates that the Astronomical Observatory with Calotte Dome enclosure features several mounted cranes. Such cranes, if
imported separately, but complete, would be classifiable under heading 8426, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Ships’ derricks; cranes, including cable cranes; mobile lifting frames, straddle carriers and works trucks fitted with a crane.
As guidance for the steel mill products to be used in the construction of the Observatory with Calotte Dome enclosure, we will make similar observations, limited by the incomplete information. You have suggested classification in heading 7308 for all structural parts of the observatory. Your submission also states in answer to our question as to whether all structural parts will be shipped together, that no decisions have been made with regard to how the individual components will be shipped. In view of that fact, classification as a structure for all parts to be used in constructing the observatory under heading 7308 is precluded. General Rule of Interpretation (GRI) 2(a) states: Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. In our opinion, in this case non-specific parts being imported randomly would not have the essential character of the finished structure and would not be classifiable in heading 7308 based on the information submitted.
However, access walkways are shown in a technical drawing in your submission. If imported separately from the entire structure, these access walkways for the observatory imported as a complete or unassembled entity would be classifiable under heading 7308, HTSUS which provides for Structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge sections, lock gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns) of iron or steel: parts of structures. Other parts for the construction of the observatory which are mill products of steel, such as bars, rods, beams, angles, shapes or sections, tubes and wire, will be classifiable in accordance with their manufacturing processes, chemistry and dimensions in Chapter 72 and 73. We would suggest that when more complete shipping details are known, that you resubmit your request on the structural part of the observatory.
Regarding the LCS, you propose classification under subheading 9027.90.5630, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts and accessories of articles classified in subheading 9027.30.40, HTSUS. While the imaging infrared spectrograph with which the LCS is designed to operate may indeed be considered an instrument or apparatus of heading 9027, Note 2(a) of Chapter 90 states that parts and accessories which are goods included in any of the headings of chapter 84, 85, 91, or elsewhere in 90 are in all cases to be classified in their respective headings (excluding three exceptions that do not apply in this instance). Heading 8418 provides for refrigerators, freezers and other refrigerating or freezing equipment. As the LCS is provided for under heading 8418, HTSUS, it would be excluded from classification under subheading 9027.90, HTSUS
The applicable subheading for the LCS, imported complete in one shipment, will be 8418.69.0180, HTSUS, which provides for refrigerating or freezing equipment. The general rate of duty will be free.
Regarding the PMA (SSA with mirror segments attached), you propose classification under subheading 9002.90.4000, HTSUS, and we agree.
The applicable subheading for the PMA (SSA with mirror segment attached), imported complete in one shipment, will be 9002.90.4000, which provides for Lenses, prisms, mirrors and other optical elements, of any material, mounted, being parts of or fitting for instruments or apparatus, other than optical elements of glass, not optically worked: Other: Mirrors. The general rate of duty will be free.
Regarding the SSA imported without mirror segment attached, you propose classification under subheading 9002.90.9500, HTSUS, which provides for Lenses, prisms, mirrors and other optical elements, of any material, mounted, being parts of or fitting for instruments or apparatus, other than such elements of glass not optically worked; parts and accessories thereof: Other: Other. While the SSA without mirror segment attached may be a part of a mounted mirror, Note 2(a) of Chapter 90 states that parts and accessories which are goods included in any of the headings of chapter 84, 85, 91, or elsewhere in 90 are in all cases to be classified in their respective headings (excluding three exceptions that do not apply in this instance). The SSA without mirror segment attached is provided for under heading 8479, HTSUS.
The applicable subheading for the SSA, imported complete in one shipment but without the mirror segment attached, will be 8479.89.9499, HTSUS, which provides for Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter, parts thereof: Other machines and mechanical appliances: Other: Other: Other. The general rate of duty will be 2.5 percent ad valorem.
Regarding the Image Slicer, you propose classification under subheading 9002.90.4000, HTSUS, and we are in agreement.
The applicable subheading for the Image Slicer, imported complete in one shipment, will be 9002.90.4000, HTSUS, which provides for Lenses, prisms, mirrors and other optical elements, of any material, mounted, being parts of or fitting for instruments or apparatus, other than optical elements of glass, not optically worked: Other: Mirrors. The general rate of duty will be free.
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.
Aluminum extrusions, if manufactured in China, may be subject to antidumping duties or countervailing duties (AD/CVD). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). You can contact them at http://trade.gov/enforcement/ (click on “Contact Us”). For your information, you can view a list of current AD/CVD cases at the United States International Trade Commission website at https://www.usitc.gov (click on “Antidumping and Countervailing Duty” under “Popular Topics” at the top of the screen), and you can search AD/CVD deposit and liquidation messages using CBP’s AD/CVD Search tool at http://addcvd.cbp.gov/.
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 Barbara Kiefer at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division