CLA-2-84:OT:RR:NC:N1:102
Ms. Lilly Voong
Delta Electronics (AMERICAS) LTD.
46101 Fremont Blvd.
Fremont, CA 94538
RE: The tariff classification of a fan tray from China
Dear Ms. Voong:
In your letter dated September 24, 2018, you requested a tariff classification ruling. A sample was provided and is being returned to you.
The article in question is referred to as the XTC-10 Fan Tray, part number 132-0008-001. The metal tray is rectangular in shape and consists of microcontrollers and four fans mounted onto a tray. The microcontrollers allow for the fan tray to interface with networking or telecommunication equipment and the fans supply air to the networking or telecommunciation equipment.
In your letter, you suggest the fan tray be classified in subheading 8517.70.0000, Harmonized Tariff Schedule of the United States, (HTSUS), which provides for Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network); parts. However, we disagree.
“Parts” are classified in accordance with Note 2 to Section XVI which states that, subject to certain exclusions found in Note 1 to Section XVI, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:
(a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings…
In this instance, the primary purpose of the fan tray, which consists of four fans, is to supply air to networking or telecommunication equipment. Fans that produce air are specifically provided for in HTSUS heading 8414. Therefore, in accordance with Note 2(a) to Section XVI, the fan tray will be classified in its respective heading.
As such, the applicable subheading for the XTC-10 Fan Tray, part number 132-0008-001, will be 8414.59.1500, HTSUS, which provides for Air or vacuum pumps, air or other gas compressors and fans; Fans; Other; microprocessors, telecommunications apparatus, automatic data processing machines or units of automatic data processing machines. The general rate 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 8414.59.1500, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8414.59.1500, 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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division