CLA-2-85:OT:RR:NC:N2 209
Rodolfo Salinas
Infinite Electronics
310 Leora Ln., Ste 100 Lewisville, TX 75056
RE: The tariff classification of an optical transceiver from China
Dear Mr. Salinas:
In your letter dated November 7, 2023, you requested a tariff classification ruling.
The merchandise under consideration is an optical transceiver, part# EOLP-1396-10-X. This item is a single mode transceiver in a small form-factor pluggable (SFP) module for serial optical data communications with an operating data rate of 11.3Gbps and transmission distance of up to 10 km. The module has a SFP+ 20-pin connector to allow hot plug capability. The transceiver is used for transmitting and receiving information between two network devices via a fiber optic cable.
In your request, you suggest that the correct classification for the optical transceiver should be under subheading 8517.69.0000, Harmonized Tariff Schedule of the United States (HTSUS). We disagree.
In our view, the subject item performs the specific functions of receiving, converting, and transmitting data between two network devices via optical cable. The device receives an electrical signal from a switch or router and converts it into an optical signal that can be transmitted. Subheading 8517.62.0090, HTSUS, specifically provides for “Machines for the reception, conversion and transmission or regeneration of voice, images, or other data, including switching and routing apparatus.” Since the subject device is capable of performing all three functions (receiving, converting, and transmitting), classification of this product under subheading 8517.69.0000, HTSUS, is not applicable.
The applicable subheading for the optical transceiver will be 8517.62.0090, HTSUS, which provides for “Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data…: Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: 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 8517.62.0090, 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 8517.62.0090, HTSUS, listed above.
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 Steven Pollichino at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division