CLA-2-84:OT:RR:NC:N1:102
Benjamin Silk
Near North Customs Brokers Inc.
55 Patterson Rd, 2nd Floor
Barrie, Ontario L4M7K1
Canada
RE: The tariff classification of separate indoor and outdoor air conditioning units from China
Dear Mr. Silk:
In your letter dated November 5, 2019 you requested a tariff classification ruling, on behalf of your client, Wolf Steel Ltd. Descriptive information was provided.
The Napoleon NH25 Series Ductless Heat Pumps are split air conditioning systems, consisting of an indoor evaporator unit, item number NH25-09F-I, and an outdoor unit, item number NH25-09F-O. The outdoor unit, which connects to the subject indoor evaporator unit and other types of indoor units, consists of a condenser, a compressor and a heat pump. The heat pump allows for the system to change between cooling and heating cycles. It is stated that the indoor and outdoor units will be imported separately.
The applicable subheading for item number NH25-09F-O, the outdoor unit of the split system, imported separately, will be 8415.90.8065, 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: Other: Other: Of heat pumps. The general rate of duty is 1.4 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8415.90.8065, HTSUS, unless specifically excluded, are subject to an additional 15 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 8415.90.8065, 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 the World Wide Web at https://hts.usitc.gov/current.
In your submission, you also requested a ruling on the classification of the indoor evaporator unit, item number NH25-09F-I. However, more information is needed to determine the classification of this unit, as it is not clear whether the indoor unit is used exclusively with heat pump systems that incorporate a frigerating unit and a reversible heat pump, or other types of systems.
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