The tariff classification of power supplies from the Dominican Republic

NY D87300 February 23, 1999 CLA-2-85:RR:NC:MM:109 D87300 CATEGORY: Classification TARIFF NO.: 8504.40.9540 Ms. Sandra Tovar CST, Inc. P.O. Box 1197 Fayetteville, GA 30214 RE: The tariff classification of power supplies from the Dominican Republic Dear Ms. Tovar: In your letter dated January 20, 1999, you requested a tariff classification ruling on behalf of Power One Electronics of Isabela, Puerto Rico. The merchandise is described in your letter as power supplies. Power One Electronics produces power supply modules in Mexico. There are two distinct “sides” composed of modules that make up each finished power supply. There is an alternating current input “side” made up of a singular module. This part accepts electricity from a primary source (wall socket) and distributes it to multiple modules that are plugged into the primary one. These “plug-in” modules are the secondary side of the power supply. The secondary side supplies the customer with a variety of direct current power or “volts direct current” (VDC). The power supply modules are used in a variety of devices such as computers, televisions, radios, etc. The range of power for the finished units is from 500 to 4000 watts. The Mexican produced modules are made in five different case sizes. The customer has the opportunity to determine the configuration of the secondary modules. The wattage is being summed together by the instillation of various modules in the power supply, forming the final configuration. The modules are shipped from Mexico to Puerto Rico clearing U.S. Customs in Puerto Rico. The modules are stored in Puerto Rico until the customer’s order is received. The power modules will then be shipped from Power One’s Puerto Rico facility to their related facility in the Dominican Republic for the final configuration into the finished power supply. The power supply modules are substantially transformed by assembly in the Dominican Republic into a finished power supply. The applicable subheading for the power supply modules will be 8504.40.9540, Harmonized Tariff Schedule of the United States (HTS), which provides for “Rectifiers and other rectifying apparatus: Power supplies: Other.” The duty rate will be 1.5 percent ad valorem. Articles which are classifiable under subheading 8504.40.9540, HTS, which are products of the Dominican Republic are entitled to duty free treatment under the Generalized System of Preferences (GSP) upon compliance with all applicable regulations. 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 Eileen S. Kaplan at 212-637-7048. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division