CLA-2-83:OT:RR:NC:N1:121
Bryan Young
OFS
1204 E 6th Street Huntingburg, IN 47542
RE: The tariff classification of an aluminum clip and cap prototype from China
Dear Mr. Young:
In your letter dated April 12, 2023, you requested a tariff classification ruling.
The items under consideration are identified as a clip and a cap made of aluminum A16061-T6. The clip and cap are fit onto the leg of a mobile desk to contain an electrical cable and to secure a plastic shroud/covering over the cable. The clip is a cylinder with a U- shaped channel at one end and a screw hole at the other. The sides of the channel are externally threaded. The cap is an internally threaded disk. The non-threaded end of the clip is placed over a screw hole on the post/leg of the mobile desk. A wood screw is inserted through the hole in the bottom of the clip to attach the clip to the wood post/leg. Three clips are attached down the leg of the desk. Cable is run through the U portion of the clips, the plastic shroud/covering is placed over the cable and clips, and then the caps are threaded on to the clips to secure the shroud and provide a decorative finish. The clip and cap will ship together, but will not ship with the leg or other parts of the mobile desk. You requested a determination for clips and caps that are made of die cast aluminum, and also a determination for clips and caps that are made of extruded aluminum.
You suggested that the clip and cap may be classified under subheading 9403.99.9041, Harmonized Tariff Schedule of the United States (HTSUS). We disagree. The subject clip and cap make up one functional unit that, when used together, comprise a simple fitting that, in this instance, is used to guide and affix a cable along a mobile desk upright. That said, the clip and cap would also serve to guide and affix a cable along any surface on any piece of furniture. In this application, in addition to holding a cable in place, the clip and cap unit is also shown holding a plastic shroud in place. The broad applicability of this article to hold any suitably sized cable and shroud in any setting is too broad to have the characteristics of a furniture part in Heading 9404, HTSUS. Rather the clip and cap unit has the more common characteristics of mountings and fittings in Heading 8302, HTSUS. Per HQ 966201, October 27, 2003, common characteristics of mountings and fittings of 8302 include: Base metal articles “which provide the function of attaching, fixing (in place), fitting, connecting, protecting, separating, binding, or stabilizing two separate articles together, or one to (or from) the other.” Furthermore, we note that mountings and fittings of 8302 are considered parts of general use as defined in Note 2 to Section XV. Parts of general use are excluded from classification in chapter 94 by Note 1(d) to Chapter 94, HTSUS.
The applicable subheading for the aluminum clip and cap will be 8302.42.3065, HTSUS, which provides for Base metal mountings, fittings and similar articles… Other mountings, fittings and similar articles, and parts thereof: Other, suitable for furniture: Of iron or steel, of aluminum or of zinc; Other. The duty rate will be 3.9 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8302.42.3065, HTSUS, unless specifically excluded, are subject to an additional 7.5 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 8302.42.3065, 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.
The aluminum clip and cap from China made from an extruded manufacturing process may be subject to antidumping duties or countervailing duties. Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce (ITA) and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). General information regarding the ITA and AD/CVD can be found at https://www.trade.gov/us-antidumping-and-countervailing-duties. The ITA’s “Guide on How to File for an Antidumping/Countervailing Duty Scope Ruling Request” is available at https://enforcement.trade.gov/scope/Request-Scope-Ruling.pdf
You also inquired if the imported aluminum clip and cap qualify for duty free treatment as a prototype under subheading 9817.85.01, HTSUS, which provides for “Prototypes to be used exclusively for development, testing, product evaluation, or quality control purposes.” You state that OFS intends to import 1 shipment of 8 clips and 8 caps to be used for quality control and product evaluation purposes. You further state that OFS will not incorporate the aluminum clip and cap into other products that will be sold. We note that paragraph (c) of U.S. Note 7 to Chapter 98, HTSUS, states, “Articles subject to quantitative restrictions, antidumping orders, or countervailing duty orders may not be classified as prototypes under this note.” As goods from China made of extruded aluminum may be subject to antidumping or countervailing duty orders, those products would not qualify for duty free treatment as a prototype under subheading 9718.85.01, HTSUS. However, based on the information presented, we find that the aluminum clip and cap made of die cast aluminum do qualify for duty free treatment as a prototype under subheading 9817.85.01, provided that all of the conditions delineated in U.S. Note 7, Chapter 98, Subchapter XVII, HTSUS are satisfied.
The applicable subheading for the 1 shipment of 8 clips and 8 caps made of die cast aluminum that are to be used for quality control and product evaluation purposes will be 9817.85.01, HTSUS, which provides for “Prototypes to be used exclusively for development, testing, product evaluation, or quality control purposes.” The rate of duty will be free.
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 at https://hts.usitc.gov/current
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Jennifer Jameson at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division