CLA-2-84:OT:RR:NC:N1:102
Mr. William Jansen
MIQ Logistics
8550 W Bryn Mawr Ave
Suite 400
Chicago, IL 60631
RE: The tariff classification of portable air conditioning machines from China
Dear Mr. Jansen:
In your letter dated February 12, 2018 you requested a tariff classification ruling on behalf of your client Perfect Aire LLC of Dallas, Texas. Descriptive information was included with your submission.
The subject merchandise at issue are portable air conditioners, item numbers PORT8000A, PORT10000A, PORT12000A and PORTQ12000. Each air conditioner is a self contained refrigerating unit on castors and features a washable filter. Each air conditioning unit has a temperature output that ranges from 62°Fahrenheit to 86°Fahrenheit and has a cooling capacity equal to or less than 2.17 kilowatts per hour.
The applicable subheading for the portable air conditioners, item numbers PORT8000A, PORT10000A, PORT12000A and PORTQ12000 will be 8415.82.0105, Harmonized Tariff Schedule of the United States, HTSUS, which provides for Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated; parts thereof; Self-contained machines and remote condenser type air conditioners other than year-round units: Not exceeding 17.58 kWper hour. The rate of duty is 2.2 percent ad valorem.
With regard to the rate of duty, the portable air conditioners are provided for in HTSUS heading 9902. HTSUS subheading 9902.15.63 by virtue of legislative action, provides for a temporary reduction in the rate of duty for “Air conditioning machines, each incorporating are frigerating unit, mounted on wheels or castors, rated at less than 3.52kWper hour (provided for in 8415.82.01)”. The portable air conditioners, specifically item numbers PORT8000A, PORT10000A, PORT12000A and PORTQ12000, meet the prerequisites of this tariff provision and as such, are entitled to beneficial treatment under HTSUS subheading 9902.15.63. The rate of duty will be Free. This rate only applies to articles entered on or before December 31, 2020.
While the aformentioned merchandise is eligible for reduced duty treatment under subheading 9902.15.63, when that merchandise is produced in China it will be subject to additional duties imposed by Section 301, as described below.
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 8415.82.0105, 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 8415.82.0105, 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