CLA-2-84:OT:RR:NC:N1:104
Mr. Andrew W. Erlewein
Otis Elevator Company
13995 Pasteur Blvd.
Palm Beach Gardens, FL 33418
RE: The tariff classification of an incomplete elevator from China
Dear Mr. Erlewein:
In your letter dated September 21, 2018 you requested a tariff classification ruling.
The Otis SkyRise elevator is imported in an incomplete, unassembled condition. As imported, you state that the product contains sufficient components to allow the elevator “to operate such that it can carry goods and people vertically in a structure”. Submitted information shows that the critical sub-assemblies necessary to perform this function are included, i.e., the machine, the controller, the drive, the carframe, the hoistway maerials, the cab shell, the ropes and the counterweight. Also included are customizable options determined by Otis’ customers.
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes. GRI 2(a) extends the scope of the HTSUS headings to include unfinished parts, provided the unfinished parts have the essential character of the finished parts. GRI 2(a) further states that, “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. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled”. Under GRI 2(a), the factor or factors which determine essential character will vary with the merchandise. It may, for example, be determined by the nature of a component or components, their bulk, quantity, weight or value, or the role of a component or components in relation to the use of the good. It is the opinion of this office that the elevator components in their imported condition possess the essential character of a complete elevator.
The applicable subheading for the above described incomplete SkyRise elevator will be 8428.10.0000, HTSUS, which provides for “Other lifting, handling, loading or unloading machinery (for example, elevators, escalators, conveyors, teleferics): Passenger or freight elevators other than continuous action; skip hoists”. The 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 the 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 Patricia O’Donnell at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division