The tariff classification of automation cabinets from Italy

N278420 September 16, 2016 CLA-2-85:OT:RR:NC:N4:120 CATEGORY: Classification TARIFF NO.: 8537.10.9160, 8537.10.9170 Aaron Marx Crowell & Moring LLP 1001 Pennsylvania Avenue, NW Washington, DC 20004 RE: The tariff classification of automation cabinets from Italy Dear Mr. Marx: In your letter dated August 9, 2016 you requested a tariff classification ruling on behalf of your client Southern Tube, LLC. The merchandise under consideration is identified as the Tempering Furnace Automation Switchboard, the Tempering Furnace Remote I/O Cabinet, and the Descaler Remote I/O Cabinet. From the information you provided, each cabinet section incorporates numerous electrical control and distribution apparatus which will be discussed henceforth. Each of the Automation sections are said to be certain automation components of a rolling mill and operate at less than 1,000 V. The Tempering Furnace Automation Switchboard is comprised of a single steel enclosure that incorporates circuit breakers, terminal blocks, and a programmable logic controller (PLC) system that includes the processor as well as multiple input, output, and various types of interface modules. The Tempering Furnace Automation Switchboard is used in process control functions such as controlling fans, safety systems, data logging, and sequential control of the tempering furnace operation. The Tempering Furnace Remote I/O Cabinet is comprised of two conjoined steel enclosures and incorporates multiple circuit breakers, contactors, terminal blocks, and numerous input, output, and various types of interface modules. From the information you provided, we note that the Tempering Furnace Remote I/O Cabinet does not contain a PLC processor, but rather connects the various modules to the Automation Switchboard PLC processor via an industrial communication network. The Descaler Remote I/O Cabinet is comprised of a single steel enclosure and incorporates circuit breakers, and numerous input, output, and various types of interface modules. From the information you provided we would note that the Descaler Remote I/O Cabinet does not contain a PLC processor, but rather connects to the Automation Switchboard processor via an industrial communication network. The three aforementioned automation cabinets, working in conjunction with one another, provide for the automatic and manual control of the various functions of operating a rolling mill, namely the control of the walking beam furnace operation. These functions include material handling, furnace combustion and pressure/temperature control, and safety monitoring and control for the furnace operation. You have suggested classification in heading 8537.10.9170, Harmonized Tariff Schedule of the United States (HTSUS), for each of the cabinets. We agree with your suggestion for the Tempering Furnace Remote I/O Cabinet, and the Descaler Remote I/O Cabinet only. Classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification is determined first in accordance with the terms of the headings of the tariff and any relative section or chapter notes. Although not dispositive, the Explanatory Notes (ENs) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level and facilitate classification under the HTSUS by offering guidance in understanding the scope of the headings and the GRIs. The ENs to heading 8537, which describe programmable controllers, state in pertinent part that “Programmable controllers are digital apparatus using a programmable memory for the storage of instructions for implementing specific functions… to control… various types of machines.” The Tempering Furnace Automation Switchboard, as described, meets the terms provided for in the ENs. Therefore, in accordance with Note 3 to Section XVI, HTSUS, the principal function of the Tempering Furnace Automation Switchboard is that of a PLC and the cabinet will be classified as such. The applicable subheading for the Tempering Furnace Automation Switchboard, as described above and if imported separately, will be 8537.10.9160, HTSUS, which provides for: “Boards, panels, consoles, … and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, … : For a voltage not exceeding 1,000 V: Other: Other: Programmable controllers.” The rate of duty will be 2.7 percent ad valorem. The applicable subheading for Tempering Furnace Remote I/O Cabinet, as described above and if imported separately, will be 8537.10.9170, HTSUS, which provides for; “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of 8535 or 8536, for electric control or the distribution of electricity…: For a voltage not exceeding 1,000 V: Other: Other: Other.” The rate of duty will be 2.7 percent ad valorem. The applicable subheading for Descaler Remote I/O Cabinet, as described above and if imported separately, will be 8537.10.9170, HTSUS, which provides for; “Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of 8535 or 8536, for electric control or the distribution of electricity…: For a voltage not exceeding 1,000 V: Other: Other: Other.” The rate of duty will be 2.7 percent ad valorem. In accordance with Note 4 to Section XVI, HTSUS, the classification of the three subject automation cabinets, when imported and intended to function together, is considered a functional unit whereby the clearly defined function is imparted by the PLC contained in the Tempering Furnace Automation Switchboard. Therefore, if imported together, the classification of the automation cabinets will be 8537.10.9160, HTSUS, which provides for: “Boards, panels, consoles, … and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, … : For a voltage not exceeding 1,000 V: Other: Other: Programmable controllers.” The rate of duty will be 2.7 percent ad valorem. 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 on the World Wide Web at https://hts.usitc.gov/current. This ruling is being issued under the provisions of Part 177 of the Customs 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, contact National Import Specialist Karl Moosbrugger at karl.moosbrugger@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division