CLA-2-85:OT:RR:NC:N2:212
Paul Nielson
Merit Trade Consulting Services LLC
40864 N Tumbleweed Trail San Tan Valley, AZ 85140
RE: The tariff classification of a sputtering machine from China
Dear Mr. Nielson:
In your letter dated December 15, 2023, you requested a tariff classification ruling on behalf of your client, BDG International.
The merchandise under consideration, identified by part number FHR.LINE.2850, is described as a Magnetron Sputtering Machine, which will be used in the manufacturing process of certain solar glass. The subject machine is presented as a complete system comprised of various modules and chambers used to perform the necessary functions of depositing Indium Tin Oxide (ITO) onto solar glass using a physical vapor deposition process. These modules include buffer chambers, sputtering process chambers, transfer chambers, and cool down modules.
The subject sputtering machine performs the coating function by generating a high electrical voltage between a cathode and an anode. The cathode, which is made of the ITO, is eroded and the substance is turned into a gaseous plasma that is deposited within the vacuum chamber onto the solar glass. A magnetron is used within the system to create a magnetic field, which will control the movement of the ions within the plasma and regulate the thickness of the glass coating. Though the completed system is presented with some mechanical features, the primary sputtering and deposition process is performed electrically.
The applicable subheading for the Magnetron Sputtering Machine, part number FHR.LINE.2850, will be 8543.70.2000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Physical vapor deposition apparatus.” The general rate of duty will be 2.5% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8543.70.2000, 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 8543.70.2000, 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