CLA-2-85:OT:RR:NC:N4:415
Mr. Michael E. Roll
Pisani & Roll LLP
1875 Century Park East, Suite 600
Los Angeles, CA 90067
RE: The tariff classification of heat trace cables, imported in bulk on the spool, from China.
Dear Mr. Roll:
In your letter dated September 14, 2017, on behalf of your client Pentair Technical Solutions (a division of Pentair plc), you requested a tariff classification ruling.
The product under consideration is Pentair’s XTV self-regulating heat trace cables when imported in bulk on the spool. The XTV family of self-regulating heat trace cables provide solutions for industrial pipe freeze protection and process temperature maintenance applications requiring high power output. An XTV heating cable consists of two 14 AWG nickel-plated copper bus wires, separated by a fluoropolymer spacer and helically wrapped with a self-regulating fluoropolymer fiber that controls power output so that the cable has an unconditional temperature identification number (T-rating) of T2C (446°F or 230°C) or lower without use of thermostats. The XTV heat trace cables will be imported in bulk for stock distribution.
When the product at issue is imported in bulk, as is the case with the product that is the subject of this ruling request, they are on spools with anywhere from 200 to 500 feet of product on the spool. Pentair will sell the product to Pentair’s customers off of the spool. For example, a customer may order 300 feet of product in which case 300 feet of product would be cut from the spool. If there is 500 feet of product on the spool before the customer’s order, then there would be 200 feet remaining. If the next customer orders 400 feet of product, then Pentair would take the 200 feet remaining on the first spool and connect it to another 200 feet of product on another spool to make the 400 feet of product.
The cables, after they are cut to length following importation (in the case of the cables imported in bulk form) are ultimately hooked up to what is called a “power connection box.” The power connection box receives current from a “thermostat heat trace panel” that is supplied electrical current by a transformer. The connection to the power connection box and supply of current to the XTV cable, in turn, creates heat proportionate to the amount of current it receives (XTV is a self-regulating heat trace cable that can regulate the amount of heat created by the amount of current it receives). The XTV cable runs to the end of the circuit where there is an end seal where the circuit stops. On the pipe, there is a RTD that constantly checks the temperature and reports back to the thermostat heat trace panel, through a separated connection, which will either lower or raise the current to regulate the heat supplied by the cable.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While not legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the Harmonized Tariff Schedule of the United States (HTSUS) and are generally indicative of the proper interpretation of these headings.
The ENs for heading 8516, Section (F), provides guidance on electric heating resistors: “[w]ith the exception of those of carbon (heading 85.45), all electrical heating resistors are classified here, irrespective of the classification of the apparatus or equipment in which they are to be used.”
Further, “[w]ire resistors are usually mounted on insulating formers (e.g., of ceramics, steatite, mica or plastics) or on soft insulating core (e.g. of glass fibres or asbestos). If not mounted, wire of this kind is classified here only if cut to length and coiled or otherwise formed to a shape identifying it as a heating resistor element. The same applies to bars, rods and plates which, to be classified here, must be cut to length or size ready for use.”
With regard to the components used to make the cable, the same components are used to make the cables whether they are already cut to length at the time of importation or imported in spools. Pentair’s technical team believes the XTV self-regulating heat trace cable meets the definition of mounted as the self-regulating polymeric-fiber heating element is “mounted” onto the fluoropolymer spacer and nickel-plated copper bus wires.
As these wire resistors are mounted, they are not subject to the exclusions mentioned in the ENs. The applicable subheading for Pentair’s XTV self-regulating heat trace cables, in bulk on the spool, will be 8516.80.8000, HTSUS, which provides, in relevant part, for: "electric heating resistors, other than those of heading 8545; … : [e]lectric heating resistors: [o]ther." The column one, general rate of duty is 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.
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 Kristopher Burton at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division