The tariff classification of a network switching device from China

N304192 May 17, 2019 CLA-2-85:OT:RR:NC:N2:209 CATEGORY: Classification TARIFF NO.: 8517.62.0020 Richard Bernard ZT Systems 333 Meadowlands Parkway 2nd floor Secaucus, NJ 07094 RE: The tariff classification of a network switching device from China Dear Mr. Bernard: In your letter dated May 2, 2019, you requested a tariff classification ruling. The item concerned is referred to as the Mellanox CS7500 switch system. The CS7500 648-port QSFP28 InfiniBand switch system (648-port EDR 100Gb/s InfiniBand Smart Director Switch) is a smart switch, which enables in-network computing through a co-design scalable hierarchical aggregation and reduction protocol (SHARP)™ technology. The CS7500 system provides the highest performing fabric solution in a 28U form factor by delivering 130Tb/s of full bi-directional bandwidth with 400ns port latency. The Mellanox CS7500 switch system provides the highest performing fabric solution by delivering high bandwidth and low latency to enterprise data centers (EDC), high-performance computing (HPC) and embedded environments. Networks built with the CS7500 system can carry converged traffic with the combination of assured bandwidth and granular quality of service. Built with Mellanox’s 6th and 7th generation of Switch-IB™ and Switch-IB™ 2 switch devices, CS7500 systems provide up to 100Gb/s full bidirectional bandwidth per port. With up to 648 ports in a 28U rack space, this system is among the densest switching systems available. The applicable subheading for the Mellanox CS7500 switch system will be 8517.62.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Telephone sets…; other apparatus for the transmission or reception of voice, images or other data…: Other apparatus for transmission or reception…: Machines for the reception, conversion, and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Switching and routing apparatus.” The general rate of duty will be Free. 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). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). 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 8517.62.00, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.04, in addition to subheading 8517.62.0020, 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 Steven Pollichino at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division