The tariff classification and applicability of Section 301 trade remedies of enclosures from China.

N312588 July 9, 2020 CLA-2-84:OT:RR:NC:N2:220 CATEGORY: Classification TARIFF NO.: 8473.30.5100; 9903.88.03 Michael Gamble Expeditors Tradewin, LLC 1015 Third Avenue Seattle, WA 98104 RE: The tariff classification and applicability of Section 301 trade remedies of enclosures from China. Dear Mr. Gamble: In your letter dated June 17, 2020 you requested a tariff classification ruling and determination on the application of the exclusion under Section 301 trade remedies, on behalf of your client, QCH Inc. The articles under consideration are described as aluminum alloy enclosures for all-in-one personal computers and are identified as Enclosure 1 and Enclosure 2. Both enclosures are imported with identical primary subcomponents but vary in screen sizes, 21.5 inch and 27 inch, respectively, and consist of an aluminum alloy enclosure and a base. Within the enclosure are a camera, which includes integrated circuits and components for camera functions, a power supply, which includes diodes, transistors, and integrated circuits, cooling fans, wireless antenna modules, speakers, and a microphone printed circuit board assembly (PCBA). You state these articles do not contain PCBAs for the motherboard or CPU. However, we would note that they do contain the PCBAs required to facilitate the specific functions of the subcomponents such as the camera and the power supply at the time of importation. You also indicate that the motherboard, CPU, BIOS, memory modules, and display screen are imported separately from the subject articles and are incorporated into the enclosures post importation. Nonetheless, we would note that at the time of importation the subject enclosure does contain various electronic components that are classifiable under heading 8541 and 8542, Harmonized Tariff Schedule of the United States (HTSUS). The applicable subheading for the aluminum alloy enclosures will be 8473.30.5100, HTSUS, which provides for “Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of headings 8469 to 8472: Parts and accessories of the machines of heading 8471: Not incorporating a cathode ray tube: Other”. The general rate of duty will be Free. With regard to the applicability of exclusions from the additional duties pursuant to U.S. Note 20 to Subchapter III, Chapter 99, we note the exclusions annotated in the June 24, 2019 Federal Register apply to importers of merchandise meeting a specific description, even when they are neither the requestor of the exclusion nor if their products are those that were reviewed for the exclusion. Section XXII, Chapter 99, Subchapter III U.S. Note 20(w) and Annex Enumeration (27), HTSUS, states: The U.S. Trade Representative determined to establish a process by which particular products classified in heading 9903.88.03 and provided for in U.S. notes 20(e) and (f) to this subchapter could be excluded from the additional duties imposed by heading 9903.88.03. See 83 Fed. Reg. 47974 (September 21, 2018) and 84 Fed. Reg. 29576 (June 24, 2019). Pursuant to the product exclusion process, the U.S. Trade Representative has determined that the additional duties provided for in heading 9903.88.03 shall not apply to the following products, which are provided for in the enumerated statistical reporting numbers: Parts and accessories of machines of heading 8471 not incorporating goods of headings 8541 or 8542 (described in statistical reporting number 8473.30.5100). Based on the pertinent facts, we find that the subject aluminum alloy enclosures do not satisfy the description as provided in Annex Enumeration (27) above. The exclusions provided under Note 20(w) are to be administered in their exact form. As you described in your submission, these articles incorporate goods of headings 8541 or 8542. Therefore in our opinion, the exclusion notated under Chapter 99, Subchapter III U.S. Note 20(w)(27) does not apply to these articles. Therefore, pursuant to U.S. Note 20 Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8473.30.5100, 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., 9903.88.03, in addition to subheading 8473.30.5100, 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 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 on the World Wide Web at https://hts.usitc.gov/current. Importations of this product may be subject to the provisions of Section 133 of the Customs Regulations if they copy or simulate a registered trademark, trade name or copyright recorded with U.S. Customs and Border Protection. If you are an authorized importer of the product we recommend notifying your local Customs office prior to importation. 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