CLA-2-85:OT:RR:NC:N2:209
David Robeson
Mohawk Global
123 Air Cargo Road Syracuse, NY 13212
RE: The tariff classification of LoRaWAN network gateways from France and China
Dear Mr. Robeson:
In your letter dated October 8, 2024, you requested a tariff classification ruling on behalf of your client, CalChip Connect.
The first item is the Kerlink Helium Network Compatible Wirnet iFemtoCell Evolution Miner - 868 MhZ EU/UK, part number GTW-000049-868. This 3G/4G indoor gateway is suitable for smart building, smart city, and where indoor dedicated coverage is needed. It is an indoor gateway designed for LoRaWAN networks. The item will be manufactured in France.
The unit has an oval shape and an attached antenna. It measures approximately, 160 mm x 90 mm x 35 mm, and weights 163g. The unit has a white, plastic enclosure with a IP30 waterproof designation and it is designed to be wall or table-mounted. The device incorporates a WPS push button, a USB (type A & type C) connector, and an integrated Wi-Fi Antenna. It uses a 230 VAC/12VDC power supply with a provided jack connector. This version of the iFemtoCell Evolution integrates a Kerlink Helium compatible miner that comes ready to mine Helium Network Tokens (HNT) and is part of the global Long Range Radio fixed network. It provides wireless network coverage for Internet-of-Things devices. This gateway rewards users with Helium tokens for providing network coverage and verifying device data. This gateway provides backhaul connectivity. Backhaul refers to the connection between the gateway and the core network (internet), typically using Ethernet, cellular, or Wi-Fi. This device is not a traditional router or modem. It acts as a LoRaWAN gateway, forwarding data from the LoRaWAN network to the blockchain network. This unit does not translate between network protocols and does not perform IP routing. The second item is the RAK Hotspot Miner v2, part number GTW-000038-915. The RAK Hotspot is a cryptocurrency mining device designed for the Helium network. It provides wireless network coverage for Internet-of-Things devices. It uses LongFi™ technology, a variation of LoRaWAN, to transmit data over long ranges using low power. This makes it ideal for providing network coverage in remote locations. The item will be manufactured in China. This device is primarily used as a LoraWAN gateway but if the consumer wants to onboard it to the Helium Network as a miner, they can with proper firmware. The unit has the ability to mine tokens by providing LoRaWAN network coverage and validating data transactions on the blockchain. For example, a user in a city might deploy a miner to earn tokens while enabling Internet-of Things device connectivity. It provides connectivity for any LoRaWAN-enabled Internet-of-Things devices, such as environmental sensors or asset trackers. This model does not support cellular. This device is not a traditional router or modem. It acts as a LoRaWAN gateway, forwarding data from the LoRaWAN network (Internet-of-things devices) to the blockchain network. This unit does not translate between network protocols and does not perform IP routing. It forwards LoRaWAN data to the appropriate blockchain network or network server. The unit forwards packets to a network server or blockchain network without traditional IP routing tables. The complete unit comes with the main control unit, which measures approximately 92 mm x 68.3 mm x 57.2 mm, antenna, power adaptor and 32GB SD card. The main control unit consists of a sturdy, plastic enclosure consisting of a control board printed circuit assembly (PCBA) with built-in heat sinks and multiple application-specific integrated circuits (ASICs). The main unit connects with a USB-C power supply, and TF Card slot and has a gigabit ethernet connection. The unit operates at 5V/3A. In return for the expanse of coverage being offered, the owner of the device earns Helium Network Tokens (HNT). A user can earn tokens through a process called Proof-of Coverage which earns rewards for validating the wireless coverage provided by other hotspots in the network. The more hotspots that are nearby, the more HNT a hotspot can earn. Based upon the information provided, it is the opinion of this office that the principal function of both devices is that of a LoRaWAN gateway. The principal function is to receive, convert and transmit data between internet-of-things devices and a specific remote server. The ability to earn Helium Network Tokens is a secondary or ancillary function.
Regarding the Kerlink Helium Network Compatible Wirnet iFemtoCell Evolution Miner, you have proposed a classification within subheading of 8517.61.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for base stations. As described within your submission, the primary function of this device is to receive, convert and transmit data within a LoRaWAN network. Based upon the exemplars found in the Explanatory Notes to heading 8517, it is CBPs position that the goods of subheading 8715.61.0000, HTSUS, are those used for providing coverage strictly within a cellular network. Goods that operate within non-cellular networks or combinations of different networks fall outside of subheading 8517.61.0000, HTSUS. As such subheading 8517.61.0000, HTSUS would be inapplicable.
The applicable subheading for the Kerlink Helium Network Compatible Wirnet iFemtoCell Evolution Miner - 868 MhZ EU/UK, part number GTW-000049-868 and the RAK Hotspot Miner v2, part number GTW-000038-915 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, including apparatus for communication in a wired or wireless network (such as a local or wide area network)…: 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.
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.
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/.
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