The tariff classification of LED rings from China

N304334 June 6, 2019 CLA-2-85:OT:RR:NC:N2:212 CATEGORY: Classification TARIFF NO.: 8543.70.9960; 9903.88.02 Ryan Dunn Pioneer Electronics (USA) Inc. 2050 W. 190th Street, Suite 100 Torrance, CA 90504 RE: The tariff classification of LED rings from China Dear Mr. Dunn: In your letter dated May 14, 2019 you requested a tariff classification ruling. There are two items under consideration that are identified as the UD-ME650LED and the UD-ME100LED. Samples were provided for our consideration and will be returned as requested. You state that the items are accessories for marine speakers and both are identical in composition, other than their size, which is determined by the speaker with which they are compatible. The UD-ME650LED is designed to fit a 6.5-inch speaker while the UD-ME100LED is designed for a 10-inch sub-woofer. Each cover is a cylindrical ring that is inlaid with LED light strips that will fit over the back of a speaker or sub-woofer. You state that when wired into an external power source the LED strips will give off a decorative backlight in either red, green, or blue, depending on the user’s preference. If attached to an external, third party controller the user can customize the light features by creating various color schemes. In your letter, you suggest the correct classification of the subject merchandise is 3926.90.9990, Harmonized Tariff Schedule of the United States (HTSUS). We disagree. In order to be classified as such, the essential character of the good must be the plastic component. This office is of the opinion that it is the electrical lighting features that impart the essential character to the LED rings. The applicable subheading for the LED rings, UD-ME650LED and UD-ME100LED will be 8543.70.9960, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other: Other”. The general rate of duty will be 2.6% ad valorem. 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 8543.70.9960, 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., 9903.88.02, in addition to subheading 8543.70.9960, 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 Luke LePage at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division