The tariff classification of a Solar FlexRack TDP Series Mounting System from China

N302277 February 6, 2019 CLA-2-84:OT:RR:NC:N:104 CATEGORY: Classification TARIFF NO.: 8479.89.9499; 9903.88.03 Ms. Cassandra J. Meyer DSV Air and Sea Inc. 25000 Country Club BlVD Ste 300 North Olmsted, OH 44070 RE: The tariff classification of a Solar FlexRack TDP Series Mounting System from China Dear Ms. Meyer: In your letter dated December 13, 2018, on behalf of your client, Northern States Metal, you requested a tariff classification ruling. The importation consists of mechanical equipment components that make up a mechanical mounting system for solar panels called a Tracker. The Tracker is commonly known as a “single axis tracker for solar energy systems.” The brand name of this product is called Solar FlexRack TDP Series. At time of importation, there are no solar panels/modules included and the system is complete at time of importation.  The Tracker is principally used in the operation of large-scale power plants in order to generate power. The Tacker acts as a mechanical device for the manipulation of solar panels. This mechanical mounting structure moves the solar panels to track the sun’s movement and to maximize the solar panel’s exposure to direct sunlight. The product is mounted facing the sun and then it moves to track the sun’s movement throughtout the sky in order for the solar power plant to increase its power generation. The movement is electronically controlled to reorient the panel relative to the sun. The component materials of the solar tracker consists of 1) electronic components and sensors to control the tracker movement, 2) drive systems which consist of motors and other related parts to move the tracker structure and 3) the tracker system wich consists of steel beams (and related parts) manufactured to make up the tracker/mechanical mounting structure. The electronic components are pre-assembled and the mechanical tracker components are shipped unassembled and can only be used when assembled according to the installation guide. Classification of goods under the HTSUS  is governed by the General Rules of Interpretation (GRIs).  GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.  Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order.  As stated in your submission, the mechanical tracker components are shipped unassembled.  General Rule of Interpretation “GRI” 2(a) states as follows: Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled. Furthermore, the Explanatory Notes to the Harmonized Commodity Description and Coding System (ENs) represent the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS, and are generally indicative of the proper interpretation of these headings. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The EN for GRI 2(a) states in “Rule 2(a) (Articles presented unassembled or disassembled) (V)”: The second part of Rule 2 (a), provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport. The applicable subheading for the Tracker, a mechanical mounting system for solar panels will be 8479.89.9499, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances. Other: Other: Other. The rate of duty will be 2.5 percent ad valrem. Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings. Products of China classified under subheading 8479.89.9499, HTSUS, unless specifically excluded, are subject to the additional 10 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 8479.89.9499, HTSUS, listed above. The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading. 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 Patricia O’Donnell at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division