CLA-2-84:OT:RR:NC:N1:105
Maureen Thorson
Wiley Rein LLP
1776 K Street NW
Washington DC 20006
RE: The tariff classification of fan assemblies and incomplete home air purifiers from China
Dear Ms. Thorson:
In your letter dated October 10, 2018, on behalf of Molekule, Inc., you requested a tariff classification ruling.
Your submission concerns certain fan assemblies and incomplete home air purification systems that will be further manufactured in the United States to form the Molekule, an air purification system intended for use in the home. The complete Molekule air purification system consists of a fan assembly, a particulate pre-filter installed in the base of the unit (intended to capture large particles of dust, hair, and other allergens), and a separate nano-filter of US origin that further purifies the air.
The fan assembly, manufactured in China, consists of a base that includes a retractable cord and power supply, a fan motor with a wattage output of 45.5W, backward-curved centrifugal fan blades, and an aluminum housing. Per the information included with your submission, fan assembly also incorporates a small touchscreen control panel, airflow sensors, and a Bluetooth transceiver.
The particulate pre-filter, also of Chinese origin, is a filter cartridge constructed of melt-blown nonwoven synthetic fiber impregnated with particles of activated carbon. Octagonal in shape, the pre-filter cartridge measures roughly 4.25" L x 4.25" W x 1.5" D, and is designed to be placed in a specially sized drawer at the base of the fan assembly.
As noted above, the fan assembly and particulate pre-filter are manufactured in China and are combined with the US-origin nano filter after importation into the United States to form the complete Molekule system. You indicate that the fan assembly will be imported into the United States in two different configurations. The first configuration consists of the fan assembly imported without any filters, to be combined with the pre-filter and nano filter after importation. The second configuration involves the fan assembly being imported with the particulate pre-filter already installed, to be combined with the nano filter after importation.
In the first configuration, the importation of the fan assembly sans filters, the good would be classified as a fan of heading 8414. While the fan assembly will ultimately be incorporated into an apparatus for the filtering or purification of air, the filterless fan assembly will not contain any filtering or purifying elements in this configuration. Consequently, the fan assembly could not be considered an apparatus for filtering or purifying air. Additionally, while the fan assembly is designed to serve as a part of a complete filtering machine, Note 2(a) to Section 16 indicates that parts which are goods included in any of the headings of Chapter 84 or 85 (barring some exceptions that do not apply in this instance) are in all cases to be classified in their respective headings. As the filterless fan assemblies are included in heading 8414, they would be classified in that heading. In the second configuration, the importation of the fan assemblies with the particulate pre-filter already installed, the fan assemblies will contain filtering or purifying elements that were absent in the first scenario. The presence of the requisite filtration media already installed into the fan assembly enables the product to function as an apparatus for filtering or purifying air (albeit an incomplete one, as it will undergo further assembly in the United States). Consequently, the fan assemblies with particulate pre-filters would be considered an incomplete machine or apparatus for the filtering or purifying of gases of heading 8421, in accordance with General Rule of Interpretation 2(a).
The applicable subheading for the filterless fan assemblies will be 8414.51.9090, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Air or vacuum pumps, air or other gas compressors and fans; ventilating or recycling hoods incorporating a fan, whether or not fitted with filters; parts thereof; Fans; Table, floor, wall, window, ceiling or roof fans, with a self-contained electric motor of an output not exceeding 125W: Other: Other. The general rate of duty is 4.7% ad valorem.
The applicable subheading for the fan assemblies imported incorporating the pre-filter will be 8421.39.8015, HTSUS, which provides for Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Filtering or purifying machinery and apparatus for gases: Other: Other: Dust collection and air purification equipment: Other. The rate general of duty will be free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8421.39.8015, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheading 8421.39.8015, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.
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 Evan Conceicao at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division