CLA-2-84:OT:RR:NC:N1:102
Diego F. Bolanos
Danby Products Ltd.
5070 Whitelaw Road
Guelph, Ontario N1H6Z9
Canada
RE: The tariff classification of self-contained air conditioning machines from China
Dear Mr. Bolanos:
In your letter dated March 5, 2020, you requested a tariff classification ruling. Descriptive information was provided.
The products you intend to import are described as air conditioning machines, model numbers DPTA090HEB1WDB, DPTA120HEB1WDB, and DPTA150HEB1WDB. The air conditioning machines are designed to be mounted to a wall using a mount or sleeve and are designed to cool and heat spaces ranging of 400 to 800 square feet. It is said that the self-contained machines incorporate refrigerating elements and a heat pump with a reversing valve. The reversing valve allows for the unit to change between the heating and cooling cycles. The air conditioning machines differ in output capacity. Model number DPTA090HEB1WDB has an output of 2.63 kilowatts (kWs) per hour. Model number DPTA120HEB1WDB has an output of 3.51 kWs per hour and model number DPTA150HEB1WDB has an output of 4.39 kWs per hour.
In your letter, you suggest the air conditioning machines are classified within subheading 8415.10.6000, 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: Of a kind designed to be fixed to a window, wall, ceiling or floor, self-contained or “split system”: Other: Incorporating a refrigerating unit and a valve for reversal of the cooling/heat cycle (reversible heat pumps). While we agree at the heading level, we disagree at the subheading level, as the subject machines are self-contained units. Self-contained units of a kind designed to be fixed to a window, wall, ceiling or floor are provided for in subheading 8514.10.30. The statistical 10-digit subheading is determined in accordance with the kW output range.
As such, the applicable subheading for the air conditioning machine, model number DPTA090HEB1WDB, will be 8415.10.3040, 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: Of a kind designed to be fixed to a window, wall, ceiling or floor, self-contained or “split system”: Self-contained: Self-contained: Less than 2.93 kW per hour. The general rate of duty is Free.
The applicable subheading for the air conditioning machines, model numbers DPTA120HEB1WDB and DPTA150HEB1WDB will be 8415.10.3060, 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: Of a kind designed to be fixed to a window, wall, ceiling or floor, self-contained or “split system”: Self-contained: 2.93 kW per hour or greater but less than 4.98 kW per hour. The general rate of duty is Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 8415.10.3040 and 8415.10.3060, 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 subheadings, i.e., 9903.88.03, in addition to subheadings 8415.10.3040 and 8415.10.3060, 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.
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