CLA-2-85:OT:RR:NC:N2:212
Kyle O'Connor
Dominion Customs Consultants Inc.
1595 16th Avenue, Suite 202 Richmond Hill L4B 3N9 Canada
RE: The tariff classification of junction box assemblies from China
Dear Mr. O'Connor:
In your letter dated September 21, 2023, you requested a tariff classification ruling on behalf of your client, Silfab Washington.
There are two items at issue with this request, which are described as junction box assemblies used to transfer electricity through solar panels. The first is identified by item number PV-GZX156V and is comprised of a junction box with two insulated cables extending out of each end. The cables are terminated with electrical connectors at each end. Within the junction box is a diode, which acts as electrical protection for the current carried through the electrical cables. The subject assembly is attached to the solar panel via spring clamping. The finished junction box assembly is rated at 1500 VDC.
The second item is identified by item number PV-GZX312. This assembly is constructed virtually identical to that which is described above, including the voltage rating. The primary difference being that this assembly is connected to the solar panel via solder.
In your request, you state that the correct classification for the subject junction box assemblies is under subheading 8544.42.9090, Harmonized Tariff Schedule of the United States (HTSUS). We disagree.
We find the inclusion of the subject assemblies within heading 8544, HTSUS, to be correct. However, we find issue with the specific subheading based on the voltage rating of the devices. It has long been the position of CBP that where voltage is referenced in the HTS, maximum rating should be used as the driving factor and not use. Though you state that the assemblies will be used primarily under 1,000V, they are rated at 1,500V and this will be the voltage used for classification in the specific subheadings.
The applicable subheading for the junction box assemblies, item numbers PV-GZX156V and PV-GZX312 will be 8544.60.2000, 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: Other electric conductors, for a voltage exceeding 1,000 V: Fitted with connectors.” The general rate of duty will be 3.7% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8544.60.2000, 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 8544.60.2000, 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 at https://hts.usitc.gov/current.
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. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
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 Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division