CLA-2-84:OT:RR:NC:N2:220
Jonathan Wiens
PricewaterhouseCoopers LLP
1420 Fifth Avenue, Suite 2800
Seattle, WA 98101
RE: The tariff classification of the Reconfigurable Dataflow Unit from China. Correction to Ruling Number N328251.
Dear Mr. Wiens:
This replaces Ruling Number N328251, dated October 14, 2022, which contained a clerical error. The number of dataflow units incorporated into the merchandise at the time of entry was noted incorrectly. A complete corrected ruling follows.
In your letter dated September 21, 2022, you requested a tariff classification ruling on behalf of your client, SambaNova Systems, Inc.
The merchandise under consideration is identified as the Reconfigurable Dataflow Unit (XRDU), Model Number SN30-2, which is described as a rack-mountable chassis incorporating a main printed circuit board assembly (PCBA), two interface connection risers, two RDU risers, two dataflow units, two power supplies, cooling fans, multiple memory sockets, six additional PCBAs, and more. The function of the XRDU is to connect directly to a host server and process data at an accelerated rate, such as in artificial intelligence and machine learning applications. You state that the XRDU is imported without its memory, firmware, and interface cards. Based on the information provided, after importation the XRDU will receive its two dataflow units, which are described as ASIC based processors performing the data processing acceleration function, its memory, its firmware, and its interface PCBAs. The XRDU chassis is rack mounted in proximity to the host server, connected via the interface cards, and receives and/or processes data for the host server.
In your request, you suggest the XRDU is classifiable under subheading 8473.30.1180, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "Parts and accessories … suitable for use solely or principally with machines of heading 8471 …: Printed circuit assemblies." We disagree.
While we are of the opinion that the functional XRDU satisfies the prerequisites under Note 6 (C) to Chapter 84, HTSUS, the XRDU, in its imported condition, is rendered inoperable by the missing memory and interface cards, which are essential to the machine’s operation. Further, we would note that the chassis, containing multiple parts and/or apparatus, in its imported condition, is beyond merely a PCBA of heading 8473, HTSUS.
The applicable subheading for the Reconfigurable Dataflow Unit, Model Number SN30-2 will be 8473.30.5100, HTSUS, which provides for “Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472: Parts and accessories of the machines of heading 8471: Not incorporating a cathode ray tube: Other”. The general rate of duty will be Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8473.30.5100, 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 8473.30.5100, 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 Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division