CLA-2-85:OT:RR:NC:N2:220
Tao Tong
Megmeet USA, Inc.
4020 Moorpark Ave., Ste. 115
San Jose, CA 95117
RE: The tariff classification of a power supply from China
Dear Mr. Tong:
In your letter dated July 29, 2019 you requested a tariff classification ruling.
The merchandise under consideration is identified as the Hospital Bed Power Supply, Model MKP750S, which is described as an AC-DC converter that is specifically designed for use in certain hospital beds. The MKP750S power supply consists of an aluminum enclosure, a printed circuit board assembly (PCBA), and electrical cabling for connection to the bed systems. You state that the MKP750S power supply has an output of 800 W.
In use, the MKP750S power supply converts utility mains power to a 28 VDC rail that powers all features and functions of the bed including positioning motors, bed electronics, and on-board battery chargers. You state that the MKP750S power supply is uniquely designed and must be physically installed to the hospital bed (heat synched to large metal frame) in order to function properly.
The applicable subheading for the Hospital Bed Power Supply, Model MKP750S, will be 8504.40.9540, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Electrical transformers, static converters…: Static converters: Other: Rectifiers and rectifying apparatus: Power supplies: Other. The rate of duty will be 0.3% ad valorem.
In your submission, you propose a secondary classification of 9817.00.96, HTSUS, which applies to articles and parts of articles specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped. Chapter 98, Subchapter XVII, U.S. Note 4(a), HTSUS, defines the term “blind or other physically or mentally handicapped persons” as including “any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking breathing, learning, or working.”
You state that the subject power supply is specially designed to work exclusively with the hospital bed and provide an extensive list of features and functions the bed is capable of performing. While we agree that the subject power supply is principally used with the hospital bed, we do not agree that the bed itself meets the conditions of U.S Note 4(a), HTSUS. In noting NY N242707, where CBP considered the classification of electric motors for hospital beds under subheading 9817.00.96, HTSUS, we are of the opinion that the subject power supplies are not specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped. As such, subheading 9817.00.96, HTSUS, is not applicable.
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). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). 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 8504.40.9540, 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., 9903.88.03, in addition to subheading 8504.40.9520, HTSUS, listed above.
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 Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division