CLA-2:OT:RR:NC:N1:102
Jaime Maldonado
Air-Con, Inc.
Carr # 2 Km 16.5 Bo Candelaria
Toa Baja, Puerto Rico 00969
RE: The tariff classification of split ductless air conditioner system units from China
Dear Jaime Maldonado:
In your letter dated March 19, 2022, you requested a tariff classification ruling. Descriptive information was provided.
The items in question are outdoor and indoor units of different sizes and output capacities, which together make split ductless, Air-Con air conditioning systems. The systems are designed to cool spaces in a home. It is stated that the outdoor and indoor units will be imported in different shipments and quantities. The indoor unit, which functions as an evaporator, is designed to be mounted to a wall. The outdoor unit primarily consists of a condenser coil and a compressor and is designed to be mounted to the ground or wall. In some instances, the outdoor unit will incorporate a heat pump, allowing the system to cool and heat spaces.
When the outdoor and indoor units that together cool and heat spaces are imported separately, the units are each classifiable under subheading 8415.90.8065, 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: Parts: Other: Other: Of heat pumps. The rate of duty is 1.4%.
When the split-system air conditioner units that together cool spaces are imported separately, they are classifiable under subheading 8415.90.8085, 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: Parts: Other: Other: Other. The rate of duty is 1.4%.
The applicable subheading for complete split air conditioning systems that heat and cool spaces, i.e., an outdoor unit and one or more indoor units, is 8415.10.6000, 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: 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). The rate of duty is 1% ad valorem.
The applicable subheading for complete split air conditioning systems that only cool spaces, i.e., an outdoor unit and one or more indoor units, is 8415.10.9000, 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: Of a kind designed to be fixed to a window, wall, ceiling or floor, self-contained or “split system”: Other: Other. The rate of duty is 2.2% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 8415.10.6000 and 8415.10.9000, unless specifically excluded, are subject to an additional 25% 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 subheadings 8415.10.6000 and 8415.10.9000, HTSUS, listed above.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 8415.90.8065 and 8415.90.8085, unless specifically excluded, are subject to an additional 7.5% 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 subheadings 8415.90.8065 and 8415.90.8085, 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).
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. You should also be aware that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 above, please contact National Import Specialist Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division