Modification of DD 873614; Transformer; Power Supply; Alternating Current Converter; Static Converter

HQ 952991 March 18, 1993 CLA-2 CO:R:C:M 952991 MBR CATEGORY: Classification TARIFF NO.: 8504.31.40 Mr. William B. Chandler ELECTRO-MECH CO. 707 Hathaway Drive Colorado Springs Colorado 80915 RE: Modification of DD 873614; Transformer; Power Supply; Alternating Current Converter; Static Converter Dear Mr. Chandler: This is in reply to your letter of October 29, 1992, requesting reconsideration of DD 873614, dated April 30, 1992, regarding the classification of "AC Power Supplies," under the Harmonized Tariff Schedule of the United States (HTSUS). Your request was forwarded to this office for reply. FACTS: The Electro-Mech Co. "AC Power Supply" is designated as a "Class 2 Transformer" by the Underwriters Laboratories and Canadian Standards Association. The sample consists of an input plug for standard 120 volts alternating current, and a wire coil transformer which provides an output of 14 volts alternating current (AC). ISSUE: What is the classification of an AC converting "Power Supply" consisting of a transformer, under the Harmonized Tariff Schedule of the United States (HTSUS)? LAW AND ANALYSIS: The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part: ...classification shall be determined according to the terms of the headings and any relative section or chapter notes... -2- DD 873614, dated April 30, 1992, held that "AC power supplies" designated as P/N 905, C-901, C-899, C-897, and C-896, were classifiable under subheading 8504.40.00, HTSUS, which provides for static converters. However, you argue that your AC power supplies should be classified as transformers and not rectifiers because they "are nothing more than a transformer in a plastic case." After further clarification of the function and operation of your power supplies, and inspection of a sample, we agree that your merchandise is simply a transformer, as that term is understood in the HTSUS. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) to the HTSUS, page 1337, define the scope of the term "transformer" as follows: (I) ELECTRICAL TRANSFORMERS Electrical transformers are apparatus which, without having any moving parts, transform, by means of induction and using a preset or adjustable system, an alternating current into another alternating current of different voltage, impedance, etc. These usually consist of two or more coils of insulated wire wound on laminated iron cores... The heading covers all transformers. They vary from small types used in wireless sets, instruments, toys, etc., to large types enclosed in oil tanks or equipped with radiators, fans, etc., for cooling purposes... The instant apparatus is within the scope of this definition because it exclusively performs the function of converting alternating current of one voltage into alternating current of another voltage, by means of induction. Whereas, the ENs for electrical static converters define a different type of device. The relevant EN, page 1338, states in pertinent part: (II) ELECTRICAL STATIC CONVERTERS The apparatus of this group are used to convert electrical energy in order to adapt it for further use. They incorporate converting elements (e.g., valves) of different types. They may also incorporate various auxiliary devices (e.g. transformers, induction coils, resistors, command regulators, etc.). Their operation is based on the principle that the converting elements act alternately as conductors and non-conductors... The instant power supplies, however, do not incorporate converting elements such as valves, nor is their operation based on the principle that the converting elements act alternately as conductors and non-conductors. Therefore, the instant power supplies are not classifiable under the provision for electrical -3- static converters, but are classifiable under the provision for transformers. HOLDING: The ELECTRO-MECH CO. "AC Power Supplies" designated as P/N 905, C-901, C-899, C-897, and C-896, are classifiable under subheading 8504.31.40, HTSUS, which provides for: "[e]lectrical transformers, static converters (for example, rectifiers) and inductors: [o]ther transformers: [h]aving a power handling capacity not exceeding 1 kVA: [o]ther: [h]aving a power handling capacity less than 1 kVA." The rate of duty is 6.6% ad valorem. If the merchandise is eligible for GSP (originating in Mexico), the rate of duty is Free. EFFECT ON OTHER RULINGS: DD 873614, dated April 30, 1992, is modified under authority of Section 177.9(d), Customs Regulations (19 CFR 177.9(d)), to reflect that "AC Power Supplies" designated as P/N 905, C-901, C- 899, C-897, and C-896, are classifiable under subheading 8504.31.40, HTSUS. Sincerely, John Durant, Director Commercial Rulings Division CC: District Director U.S. Customs Service 3600 E. Paisano Bldg B Rm 134 Bridge of the Americas P.O. Box 9516