The tariff classification of Ultra Laminar Flow Diffusers from Canada

N314507 October 6, 2020 CLA-2-76:OT:RR:NC:N1:113 CATEGORY: Classification TARIFF NO.: 7616.99.5190 Ms. Erica Fritz GHY USA Inc. 572 S 5th Street Pembina, North Dakota 58271 RE: The tariff classification of Ultra Laminar Flow Diffusers from Canada Dear Ms. Fritz: In your letter dated September 10, 2020, on behalf of your client Price Industries Limited, you requested a tariff classification ruling. A catalog and specification sheets for the laminar diffusers were submitted for our review. The articles under consideration are identified as Ultra Laminar Flow Diffusers. An Ultra Laminar Flow Diffuser (ULFD) is designed for use in commercial ceiling air distribution systems. The diffuser integrates light emitting diode (LED) strips inside each module unit and creates a combination of a heating, ventilation and air conditioning (HVAC) diffuser and ceiling light fixture. You stated in your letter that “There are four models of the ULFD. The basic version ULFD-B has aluminum construction with a plastic face cover, integrated LED strips and a low voltage terminal block for electric wiring. The four model options include the ULFD-B: Basic ULFD HVAC Diffuser with integrated LED light strips, ULFD-FTR: Optional replaceable high efficiency particulate air (HEPA) filter, ULFD-URDC: Optional LED Terminal Block (with LED Driver), and LFD-H: Optional HEPA filter with no LED Lighting (HVAC Diffuser with HEPA filter only).” The ULFD is used in commercial ceiling air distribution systems inside buildings where the mixing of room air is undesirable or unsafe including operating rooms, laboratories, pharmacies, pharmaceutical manufacturing facilities, cleanrooms and other critical environment spaces. The integrated LED lighting transforms a typical laminar flow diffuser into a combination hospital-grade LED light fixture and laminar diffuser by incorporating LED lighting inside each diffuser module. The LED lighting consists of several IP67-rated LED strips with quick connectors. The ULFD-B diffuser is imported with a factory wired and installed top mounted low voltage (10V) terminal block enclosure. HEPA filters can be added into the model in order to provide an additional air purification/filtering feature. LED drivers can be mounted directly to the units in order to meet field installation requirements. The basic version ULFD-B is a composite article that consists of a HVAC diffuser composed of aluminum construction with a plastic face cover, LED strips and a terminal block. The ULFD-FTR consists of a HVAC diffuser composed of aluminum construction with a plastic face cover, LED strips, a terminal block and an optional replaceable HEPA filter. The ULFD-URDC consists of a HVAC diffuser composed of aluminum construction with a plastic face cover, LED strips, a terminal block and an optional LED terminal block with a LED driver. The LFD-H consists of a HVAC diffuser composed of aluminum construction with a plastic face cover and an optional HEPA filter. The HVAC diffuser, LED strips, terminal block, HEPA filter and LED terminal block with a LED driver are classified in different headings. Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs), taken in order. GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Since no one heading in the tariff schedules covers the diffuser, LED strips, terminal block, and a HEPA filter or LED terminal block with a LED driver in combination, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character. As each Ultra Laminar Flow Diffuser is a composite good, we must apply rule 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. EN VIII to GRI 3(b) explains that “the factor which determines essential character will vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or the use of the goods.” We must determine whether the diffuser, LED strips, terminal block, HEPA filter or LED terminal block with a LED driver imparts the essential character to the ULFD in question. It is the role of the constituent materials or components in relation to the use of the good that imparts the essential character. In this case, the purpose of the ULFD is to provide a steady flow of air into the room and it is used in commercial ceiling air distribution systems inside buildings. Noting that the diffuser is keeping a constant air flow into the room, it is the opinion of this office that the diffuser imparts the essential character to the Ultra Laminar Flow Diffuser. We note that Customs and Border Protection has a history of classifying similar diffusers by their material composition. Therefore, the diffusers made of aluminum construction will be classified as an other article of their constituent material. In accordance with GRI 3(b), each ULFD under consideration will be classified as an other article of aluminum under heading 7616, HTSUS. The applicable subheading for the Ultra Laminar Flow Diffusers model numbers ULFD-B and ULFD-URDC will be 7616.99.5190, HTSUS, which provides for other articles of aluminum, other…other. The rate of duty will be 2.5 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. We require additional information in order to classify the ULFD-FTR: Optional replaceable HEPA filter and the LFD-H: Optional HEPA filter (HVAC Diffuser with filter only). Please provide the information described below: Please provide the material composition of the HEPA filters by percentage for each component. Please describe how the HEPA filter is made (i.e. woven fabric). Are the HEPA filters imported with the diffusers or purchased separately? If you decide to resubmit your request regarding the classification of the ULFD-FTR and the LFD-H, please include all of the material that we have returned to you and mail your request to Director, National Commodity Specialist Division, Customs and Border Protection, 201 Varick Street, Suite 501, New York NY 10014, attn: Binding Ruling Request. If your request was submitted electronically and the information required does not involve sending a sample, you can re-submit your request and the additional information electronically. 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 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 Ann Taub@cbp.dhs.gov. Sincerely, Steven A. Mack Director National Commodity Specialist Division