CLA-2-85:OT:RR:NC:N2:220
George Tuttle, III
Tuttle Law Offices
3950 Civic Center Drive
San Rafael, CA 94903
RE: The tariff classification of a wire harness from China
Dear Mr. Tuttle:
In your letter dated June 2, 2022, you requested a tariff classification ruling on behalf of your client, SuperBrightLEDs.
The first item under consideration is identified as the Plug and Play Wire Harness for LED Work Lights and Off-Road Light Bar, PN WH-ATPS22, which is described as a 79-inch wire harness having an on/off rocker switch, a fuse, a relay, and multiple connectors. This harness with electrical apparatus is rated at 12 V, 15 A, and is designed for use with vehicles by supplying a protected electrical connection for LED lighting.
The second item under consideration is identified as the Plug and Play Wire Harness for Vehicle LED Work Lights and Off-Road Light Bars, PN WH-DTS10, which is described as a 155-inch wire harness having an on/off rocker switch, a fuse, a relay, and multiple connectors. This harness with electrical apparatus is rated at 12 V, 18 A, and is designed for use with vehicles by supplying a protected electrical connection for LED lighting.
In your request, you suggest the wire harnesses are considered composite goods made up of items of headings 8536 and 8544 and, as such, are subject to the provisions for composite and combination machines in accordance with Notes 3 and 4, respectively, of Section 16, Harmonized Tariff Schedule of the United States (HTSUS). You further suggest that the harnesses do not have a principal function and should be classified under subheading 8536.90.8585, HTSUS. We disagree.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. GRI 6 states, in part, that in considering subheadings within the same heading, only subheadings at the same level are comparable and unless the context otherwise requires, the relative Section and Chapter Notes also apply.
Note 3 to Section XVI, HTSUS, states:
Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
Note 4 to Section XVI, HTSUS, states:
Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function.
Note 5 to Section XVI, HTSUS, states:
For the purposes of these notes, the expression "machine" means any machine, machinery, plant, equipment, apparatus or appliance cited in the headings of chapter 84 or 85.
It is the opinion of this office that Note 3 to Section 16 is not applicable because a principal function cannot be identified and Note 4 is more appropriately applied. For both of the subject wire harnesses, the components are interconnected by electrical wire and contribute together to perform functions covered by heading 8536 and 8544, HTSUS.
In our view, the four functions provided by the wire harnesses are electrical protection (which is supplied by the fuse under 8536.10), electrical connection (which is supplied by the relay under subheading 8536.41), electrical switching (which is supplied by the switch under subheading 8536.50), and electrical conduction (which is supplied by the wiring under subheading 8544, HTSUS). However, while the individual components of the wire harnesses contribute together to a clearly defined function of making/protecting electrical connections, no function can be identified as being the clearly defined function in accordance with Note 4 to Section 16.
In your submission, you suggest the harnesses are classifiable in the residual provisions for electrical connection apparatus. However, as no function can be identified as the predominant function, the application of Note 4 to Section 16 does not resolve the classification issue, since neither subheading 8536.10, 8536.41, 8536.50, nor 8544.30 describes a clearly defined function performed by the harness. Each subheading describes only a part of the harness’ function while your suggested subheading, 8536.90.8585, HTSUS, merely provides for “other types” of electrical connection apparatus not described in any of the previous subheadings.
In this case, we have a product comprised of components described in four different subheadings, i.e., subheading 8536.10, 8536.41, 8536.50, and 8544.30 making it a composite good. These types of goods are classified by application of GRI 3. Further, because the on/off switch, the fuse, the relay, and the wire provide necessary functions to the harness assembly, neither component imparts the essential character of the finished good. Therefore, by application of GRI 3(c), the subject wire harnesses will be classified under the subheading which occurs last in numerical order among those which equally merit consideration. In this case, subheading 8544.30, HTSUS, resides last amongst the applicable subheadings.
The applicable subheading for the Plug and Play Wire Harness for the LED Work Lights and Off-Road Light Bars, PN WH-ATPS22, and the Plug and Play Wire Harness for Vehicle LED Work Lights and Off-Road Light Bars, PN WH-DTS10, will be 8544.30.0000, HTSUS, which provides for “Insulated (including enameled or anodized) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fiber cables, made up of individually sheathed fibers, whether or not assembled with electric conductors or fitted with connectors: Ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships.” The general rate of duty will be 5% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8544.30.0000, 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., 9903.88.01, in addition to subheading 8544.30.0000, 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, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at the following addresses:
https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions https://www.cbp.gov/trade/remedies/301-certain-products-china
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 Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division