CLA-2-83:OT:RR:NC:N1:121
Christopher Vliet
Diebold Nixdorf Incorporated
5995 Mayfair Road
North Canton, OH 44720
RE: The classification of a steel metal safe and enclosure from China
Dear Mr. Vliet:
In your letter dated November 19, 2019 you requested a classification ruling.
The articles under consideration are identified as “Enclosure, Safe UL, 7790” and “Enclosure, Safe CEN L, 7790.” They are for use in an Automated Teller Machine (ATM). The articles are comprised of two components: a large 5-sided steel frame, and a safe without a locking mechanism. The steel frame includes specific cutouts and fastening locations. The safe is anchored to the floor inside the steel frame. The safe is constructed of 13 mm high tensile steel plate and an additional layer of stainless steel on the door and top plate, and is made to ASTM A656 specifications or equivalent. The safe is manufactured to either UL or CEN L standards for ATM safes. The steel frame and safe are painted, two foam panels are added and then the articles are exported to the United States as the “Enclosure, Safe”. After importation, the ATM electronic equipment is placed above the safe inside the steel frame/enclosure. The wiring is then completed and outer panels are attached. You state the “Enclosure, Safe” is designed for a specific ATM model and provides, “much, if not nearly all the physical security involved in the ATM from weather, theft, and similar physical factors.”
In your request, you suggest the “Enclosure, Safe” is properly classified under subheading 8473.40.8600, Harmonized Tariff Schedule of the United States (HTSUS), as a part or accessory to a currency or coin handling machine, and cite Note 2 to Section XVI as your reasoning. We disagree. Note 2 to Section 16 is first subject to Note 1, which excludes articles of Chapters 82 or 83 via Note 1(k). As the ATM Safe is prima facie classifiable under heading 8303, classification under subheading 8473.30.8600, HTSUS, is precluded.
The applicable subheading for the “Enclosure, Safe UL, 7790” and the “Enclosure, Safe CEN L, 7790.” will be 8303.00.0000, HTSUS, which provides for Armored or reinforced safes, strong-boxes and doors and safe deposit lockers for strong-rooms, cash or deed boxes and the like, and parts thereof, of base metal. The rate of duty will be 3.8 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8303.00.0000, HTSUS, unless specifically excluded, are subject to an 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 8303.00.0000, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 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 Jennifer Jameson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division