Application for Further Review of Protest No. 390122127269; Classification; Applicability of Section 301 Trade Remedies on Certain Thermostats

H327850 August 21, 2025 OT:RR:CTF:EMAIN H327850 JRG CATEGORY: Classification TARIFF NO.: 9032.10.00; 9903.88.67 Center Director Automotive and Aerospace Center of Excellence and Expertise U.S. Customs and Border Protection 477 Michigan Ave., Rm. 281 Detroit, MI 48226 RE: Application for Further Review of Protest No. 390122127269; Classification; Applicability of Section 301 Trade Remedies on Certain Thermostats Dear Center Director: This is our decision regarding an Application for Further Review (AFR) of Protest No. 390122127269 filed on August 17, 2022, on behalf of Lippert Components Inc. (Protestant). The Protest and AFR concern the classification of certain thermostats from China under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA) and the applicability of Section 301 trade remedies. The AFR was forwarded to this office for consideration. FACTS: The “Furrion Chill Single Zone Basic Wall Thermostat,” Model No. FACW10ESSA- BL, is “a regulating device which sense the room real-time temperatures and performs actions to maintain the temperature near a desired set-point.” The thermostat is designed to be “affixed to the wall of a recreational vehicle (RV) . . . or motorhome to provide HVAC controls to those vehicles.” Finally, the “thermostats are manually controlled, hard-wired items that have no functionality in an internet-based/wireless environment.” The thermostats were entered on April 23, 2022. The thermostats were liquidated on July 29, 2022, under statistical reporting number 9032.10.0060, HTSUSA, which provides for “Automatic regulating or controlling instruments and apparatus; parts and accessories thereof: Thermostats: For air conditioning, refrigeration or heating systems: Other.” As products of China, the computer cases were subject to an additional 25 percent ad valorem duty imposed by U.S. Notes 20(a) and (b) to Subchapter III, Chapter 99, HTSUS, and their liquidation under the corresponding heading 9903.88.01, HTSUS, which provides for “[A]rticles the product of China, as provided for in U.S. note 20(a) to this subchapter and as provided for in the subheadings enumerated in U.S. note 20(b) [to this subchapter].” On August 17, 2022, Protestant filed the instant Protest and AFR arguing the thermostats are appropriately classified under statistical reporting number 9032.10.0030, HTSUSA, which provides for thermostats “[d]esigned for wall mounting.” Furthermore, Protestant contends the thermostats are entitled to relief from Section 301 duties under U.S. Note 20(ttt)(i)(88) of Chapter 99, HTSUS, which provides for “Thermostats designed for air conditioning or heating systems, not designed to connect to the internet, the foregoing designed for wall mounting (described in statistical reporting number 9032.10.0030),” and its corresponding heading 9903.88.67, HTSUS.? Protestant notes the thermostats’ “Quick Start Guide” provides instructions for how to mount the thermostats on a wall. ISSUES: Whether the thermostats are classified under statistical reporting number 9032.10.0030, HTSUSA, or statistical reporting number 9032.10.0060, HTSUSA. If statistical reporting number 9032.10.0030, HTSUSA, do the thermostats qualify for relief from Section 301 duties under U.S. Note 20(ttt)(i)(88) to Chapter 99, HTSUS. LAW & ANALYSIS: A decision on classification and the rate and amount of duties chargeable is a protestable matter under 19 U.S.C. §1514(a)(2). The subject Protest was timely filed on August 17, 2022, within 180 days of the entry’s liquidation, pursuant to 19 U.S.C. § 1514(c)(3). Further Review of Protest No. 390122127269 is properly accorded pursuant to 19 CFR § 174.24(b). Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (GRIs) and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (ARIs). GRI 1 provides that the classification of goods shall be “determined according to the terms of the headings and any relative section or chapter notes.” If the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, GRIs 2 through 6 may be applied in order. The HTSUSA provisions at issue are: 9032 Automatic regulating or controlling instruments and apparatus; parts and accessories thereof: 9032.10.00 Thermostats: For air conditioning, refrigeration or heating systems: ? We note that heading 9903.88.67 is “effective with respect to entries on or after October 12, 2021 and through June 14, 2024.” 2 9032.10.0030 Designed for wall mounting . . . * * * 9032.10.0060 Other . . . Chapter 99, Subchapter III, U.S. Note 20(ttt)(i)(88) covers “Thermostats designed for air conditioning or heating systems, not designed to connect to the internet, the foregoing designed for wall mounting (described in statistical reporting number 9032.10.0030),” and corresponds to heading 9903.88.67, HTSUS. The scope of each exclusion from Section 301 duties is governed by the product descriptions set forth in the HTSUS, and not by product descriptions set forth in a particular request for exclusion. See 84 FR 38718 (August 17, 2019). There is no dispute concerning the classification of the thermostats under subheading 9032.10.00, Harmonized Tariff System of the United States (HTSUS). According to the information provided, it is clear the thermostats are designed to be mounted on the walls of RVs or motorhomes. Specifically, the “Quick Start Guide” provides a five-step process for mounting the thermostats, including the distance from the floor that it should be mounted, and indicates that the thermostats, in their condition as imported, come with the hardware required for wall mounting. Given the language of statistical reporting number 9032.10.0030, HTSUSA, simply references “wall mounting,” without any language excluding the walls of RVs or motorhomes, the thermostats are classified under statistical reporting number 9032.10.0030, HTSUSA, as thermostats designed for wall mounting. The thermostats’ classification in statistical reporting number 9032.10.0030, HTSUSA, satisfies two of the requirements of U.S. Note 20(ttt)(i)(88)’s exclusion, namely that the thermostats are “designed for air conditioning or heating systems” and “designed for wall mounting.” The third requirement, “not designed to connect to the internet,” is also met, as Protestant indicated the thermostats are not compatible with the internet and there is no mention of internet capabilities in the thermostats’ “Quick Start Guide.” Therefore, the thermostats also qualify for relief from Section 301 duties under U.S. Note 20(ttt)(i)(88) and its corresponding heading 9903.88.67, HTSUS. HOLDING: By application of GRIs 1 and 6, the thermostats will be classified under statistical reporting number 9032.10.0030, HTSUSA, which provides for “Automatic regulating or controlling instruments and apparatus; parts and accessories thereof: Thermostats: For air conditioning, refrigeration or heating systems: Designed for wall mounting.” The general, column one rate of duty is 1.7%. The subject thermostats also fall under the scope of U.S. note 20(ttt)(i)(88), and therefore qualify to be classified under heading 9903.88.67, HTSUS. You are instructed to GRANT the Protest. You are instructed to notify the Protestant of this decision no later than 60 days from the date of this decision. Any reliquidation of the entry or entries in accordance with the decision 3 must be accomplished prior to this notification. Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings will make the decision available to CBP personnel and the public on the Customs Rulings Online Search System (CROSS) at https://rulings.cbp.gov/, or other methods of public distribution. Sincerely, for Yuliya A. Gulis, Director Commercial and Trade Facilitation Division 4