The tariff classification of modem parts from China

N314870 October 6, 2020 CLA-2-85:OT:RR:NC:N2:209 CATEGORY: Classification TARIFF NO.: 8517.70.0000, 9817.00.96 Robert John Leo Meeks, Sheppard, Leo & Pillsbury 570 Lexington Avenue, Suite 2405 New York, NY 10022 RE: The tariff classification of modem parts from China Dear Mr. Leo: In your letter dated September 28, 2020, you requested a tariff classification ruling on behalf of your client, Respironics, Inc. The items concerned are modem parts (part #s 1141986, 1141987 and 1137153) which are specifically designed and exclusively used with Respironics, Inc.’s., DreamStation CPAP and BiPAP therapy machines. The DreamStation CPAP and BiPAP systems deliver positive airway pressure therapy for the treatment of obstructive sleep apnea. These modem parts are manufactured of plastic and wiring (antenna). The outside plastic molded housing of these parts are specially designed to be form fitting for the DreamStation devices. They are contoured to fit the DreamStation devices and complete their housing. The applicable subheading for the DreamStation CPAP and BiPAP modem parts (part #s 1141986, 1141987 and 1137153) will be 8517.70.0000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528; parts thereof: Parts.” The rate of duty will be Free. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8517.70.0000, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 8517.70.0000, 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 and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively. In your submission you request consideration for a secondary classification of 9817.00.96, which covers articles specially designed or adapted for the use or benefit of the physically or mentally handicapped, along with parts and accessories thereof. Chapter 98, Subchapter XVII, U.S. Notes 4(a) defines the term “blind or other physically or mentally handicapped persons” as including any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, or working.” In ruling N059778 CBP confirmed that BiPAP and CPAP machines, in which the modem parts are exclusively used, are eligible for the secondary classification of HTSUS 9817.00.96. Based on the information supplied, we agree that a secondary classification will apply for these items in 9817.00.96, HTSUS, as parts and accessories specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped free of duty and user fees (if any). Please note that the additional duties imposed by subheadings 8517.70.0000 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80. For headings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable heading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80. 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