The tariff classification of computer server cabinet racks from China.

N307172 November 5, 2019 CLA-2-94:OT:RR:NC:N4:433 CATEGORY: Classification TARIFF NO.: 9403.10.0040; 9903.88.03 Richard Bernard ZT Systems 333 Meadowlands Parkway Secaucus, NJ 07094 RE: The tariff classification of computer server cabinet racks from China. Dear Mr. Bernard: In your letter dated October 30, 2019, you requested a tariff classification ruling. Illustrative literature and product descriptions were provided for review. ZT Systems, items RK-00185-006, RK-00175-010, and RK-00269-002, the “Server Equipment Racks,” are a series of cold-rolled, floor-standing, unequipped, steel storage cabinet racks on four (4) casters, measuring approximately 24” in width, 78” in height, 43” in depth, and weigh approximately 11 lbs. The cabinet racks are imported assembled, have a static capacity of 2,200 lbs., can sustain up to 3,130 lbs. of internal assembly, and have adjustable leveling feet for stability. The cabinet racks feature front and rear vented doors for airflow that are removable and lockable, however, at the time of importation the cabinet rack includes only the following: a roof cable port, cover, roof cable trough, vertical position marks, and four (4) universal interior mounting brackets. The cabinet racks are designed to secure computer server equipment, transfer switches, power cables, power supplies, uninterruptable power supplies, shelves, rails, network cards, adapters, additional hardware components, and are used in large data centers. You request classification of the server equipment racks in subheading 8473.30.5100, Harmonized Tariff Schedule of the United States, (HTSUS). This office disagrees. The Explanatory Notes (ENs) to the HTSUS constitute the official interpretation of the tariff at the international level. The ENs to Chapter 94, heading 9403, under the category of [offices] list clothing lockers, filing cabinets, filing trolleys, card index files, etc.) as falling under the list of exemplars for other furniture classified under heading 9403, HTSUS. The server equipment racks falls within the construct of EN 9403, HTSUS. The applicable subheading for the subject merchandise will be 9403.10.0040, HTSUS, which provides for “Other furniture and parts thereof: Metal furniture of a kind used in offices: Other.” The rate of duty will be free. Products of China classified under subheading 9403.10.0040, 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., 9903.88.03, in addition to subheading 9403.10.0040, HTSUS, listed above.  See U.S. Note 20 to Subchapter III, Chapter 99, HTSUS.  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 Section 301 trade remedy, 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 and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively. 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 Dharmendra Lilia at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division