The tariff classification of a variable frequency drive from China

N319897 June 16, 2021 CLA-2-85:OT:RR:NC:N2:220 CATEGORY: Classification TARIFF NO.: 8504.40.4000; 9903.88.01 Sara Wang Express Line Corp 800 Port America Pl Grapevine, TX 76051 RE: The tariff classification of a variable frequency drive from China Dear Ms. Wang: In your letter dated June 7, 2021 you requested a tariff classification ruling on behalf of your client, Shanghai Goods Supply Chain Management Co., Ltd. The merchandise under consideration is referred to as a variable frequency drive (VFD), which is described as a printed circuit board assembly (PCBA) that controls the speed and torque of an electric motor. In your request, you state that the PCBA incorporates various electrical control and rectifying apparatus, where the VFD is intended to be used in an outdoor cooling system to control the speed of the cooling fan and communicate with the supervisory thermostat controller. We would note that this ruling is regarding the importation of the VFD PCBA only, and the classification of the electric motor, fan, compressor, etc. are not under consideration. The applicable subheading for the variable frequency drive will be 8504.40.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Static converters: Speed drive controllers for electric motors.” 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 8504.40.4000, 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., 9903.88.01, in addition to subheading 8504.40.4000, 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, including information on exclusions and their effective dates, you may refer to the relevant parts of the USTR and CBP websites, which are available at the following addresses: 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. 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