The tariff classification of a power supply from China

N307161 November 21, 2019 CLA-2-85:OT:RR:NC:N2:220 CATEGORY: Classification TARIFF NO.: 8504.40.6018; 9903.88.03 Morgan Mo High Power Electronics Co., Ltd. 6F-6, No., 21, Lane 583, Ruiguang Rd Taipei City Taiwan RE: The tariff classification of a power supply from China Dear Mr. Mo: In your letter dated October 30, 2019 you requested a tariff classification ruling. The merchandise under consideration is identified as a Power Supply for a Personal Computer, Model No. HP1-F850GD-F14C, which is described as a steel enclosure measuring 140 mm by 150 mm by 86 mm containing rectifying apparatus and having multiple output cable harnesses for connecting to various components within an automatic data processing machine. The subject switching power supply is intended to be installed internally and has a maximum power output of 850 Watts. In your request, you suggest the subject power supply is correctly classified under 8504.40.6018, Harmonized Tariff Schedule of the United States (HTSUS). We agree The applicable subheading for the Power Supply for a Personal Computer, Model No. HP1-F850GD-F14C will be 8504.40.6018, HTSUS, which provides for "Electrical transformers, static converters (for example, rectifiers) and inductors… Static converters: Power Supplies for automatic data processing machines or units thereof of heading 8471: Suitable for physical incorporation into automatic data processing machines or units thereof of heading 8471: Other." The general rate of duty will be Free. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8504.40.6018, HTSUS, unless specifically excluded, are subject to an additional 25 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 8504.40.6018, HTSUS, listed above.   The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading.  For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at: https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions https://www.cbp.gov/trade/remedies/301-certain-products-china 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. With regard to your request for the applicability of the subject goods to exclusion from Section 301 Trade Remedies (i.e. classification under subheading 9903.88.03, above), it is the opinion of this office that the subject power supply does not meet the exclusionary parameters of Note 20 (w)(29) which reads: “Power supplies suitable for physical incorporation into automatic data processing (ADP) machines or units thereof of heading 8471, each with a power output exceeding 500 W, measuring 148mm in length, 43 mm in width and 335 mm in height (described in statistical reporting number 8504.40.6018).” 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 Karl Moosbrugger at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division