Customs Bulletin Weekly, Vol. 55, June 16, 2021, No. 23
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U.S. Customs and Border Protection ◆ PROPOSED REVOCATION OF A RULING LETTER AND REVOCATION OF TREATMENT RELATING TO THE TARIFF CLASSIFICATION OF CERTAIN DEVICES KNOWN AS NETWORK ADAPTERS AGENCY: U.S. Customs and Border Protection, Department of Homeland Security. ACTION: Notice of proposed revocation of a ruling letter, and revo- cation of treatment relating to the tariff classification of a certain devices known as network adapters. SUMMARY: Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by section 623 of title VI (Customs Mod- ernization) of the North American Free Trade Agreement Implemen- tation Act (Pub. L. 103–182, 107 Stat. 2057), this notice advises interested parties that U.S. Customs and Border Protection (CBP) intends to revoke a ruling letter concerning tariff classification of certain networking equipment known as network adapters under the Harmonized Tariff Schedule of the United States (HTSUS). Similarly, CBP intends to revoke any treatment previously accorded by CBP to substantially identical transactions. Comments on the correctness of the proposed actions are invited. DATE: Comments must be received on or before July 16, 2021. ADDRESS: Written comments are to be addressed to U.S. Customs and Border Protection, Office of Trade, Regulations and Rulings, Attention: Erin Frey, Commercial and Trade Facilitation Division, 90 K St., NE, 10th Floor, Washington, DC 20229–1177. Due to the COVID-19 pandemic, CBP is also allowing commenters to submit electronic comments to the following email address: [email protected]. All comments should reference the title of the proposed notice at issue and the Customs Bulletin volume, number and date of publication. Due to the relevant COVID-19-related restrictions, CBP has limited its on-site public inspection of public comments to 1625 notices. Arrangements to inspect submitted comments should be made in advance by calling Ms. Erin Frey at (202) 325–1757. 1 2 CUSTOMS BULLETIN AND DECISIONS, VOL. 55, NO. 23, JUNE 16, 2021 FOR FURTHER INFORMATION CONTACT: Tom P. Beris, Electronics, Machinery, Automotive, and International Nomenclature Branch, Regulations and Rulings, Office of Trade, at (202) 325–0292. SUPPLEMENTARY INFORMATION: BACKGROUND Current customs law includes two key concepts: informed compli- ance and shared responsibility. Accordingly, the law imposes an obli- gation on CBP to provide the public with information concerning the trade community’s responsibilities and rights under the customs and related laws. In addition, both the public and CBP share responsibil- ity in carrying out import requirements. For example, under section 484 of the Tariff Act of 1930, as amended (19 U.S.C. § 1484), the importer of record is responsible for using reasonable care to enter, classify and value imported merchandise, and to provide any other information necessary to enable CBP to properly assess duties, collect accurate statistics, and determine whether any other applicable legal requirement is met. Pursuant to 19 U.S.C. § 1625(c)(1), this notice advises interested parties that CBP is proposing to revoke a ruling letter pertaining to the tariff classification of certain network devices known as network adapters. Although in this notice, CBP is specifically referring to New York Ruling Letter (NYRL) N301141, dated November 5, 2018 (At- tachment A), this notice also covers any rulings on this merchandise which may exist, but have not been specifically identified. CBP has undertaken reasonable efforts to search existing databases for rul- ings in addition to the one identified. No further rulings have been found. Any party who has received an interpretive ruling or decision (i.e., a ruling letter, internal advice memorandum or decision, or protest review decision) on the merchandise subject to this notice should advise CBP during the comment period. Similarly, pursuant to 19 U.S.C. § 1625(c)(2), CBP is proposing to revoke any treatment previously accorded by CBP to substantially identical transactions. Any person involved in substantially identical transactions should advise CBP during this comment period. An importer’s failure to advise CBP of substantially identical transac- tions or of a specific ruling not identified in this notice may raise issues of reasonable care on the part of the importer or its agents for importations of merchandise subsequent to the effective date of the final decision on this notice. In NYRL N301141, CBP classified certain devices referred to as network adapters in subheading 8517.62.0020, HTSUSA (Anno- 3 CUSTOMS BULLETIN AND DECISIONS, VOL. 55, NO. 23, JUNE 16, 2021 tated), which provides for “Telephone sets...; other apparatus for the transmission or reception of voice, images or other data...: Other apparatus for transmission or reception...: Machines for the recep- tion, conversion, and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Switching and routing apparatus.” CBP has reviewed N301141 and has deter- mined the classification of these devices to be in error. It is now CBP’s position that the network adapters should be classified under sub- heading 8517.62.0090, HTSUSA, which provides for “Telephone sets...; other apparatus for the transmission or reception of voice, images or other data...: Other apparatus for transmission or recep- tion...: Machines for the reception, conversion & transmission or regeneration of voice, images or other data, including switching and routing apparatus: Other.” Pursuant to 19 U.S.C. § 1625(c)(1), CBP is proposing to revoke NYRL N301141 as indicated above and to revoke any other ruling not specifically identified to reflect the analysis contained in the proposed Headquarters Ruling Letter (“HQ”) H316155, set forth as Attachment B to this notice. Additionally, pursuant to 19 U.S.C. § 1625(c)(2), CBP is proposing to revoke or modify any treatment previously accorded by CBP to substantially identical transactions. Before taking this action, consideration will be given to any written comments timely received. Dated: GREGORY CONNOR For CRAIG T. C LARK, Director Commercial and Trade Facilitation Division Attachments 4 CUSTOMS BULLETIN AND DECISIONS, VOL. 55, NO. 23, JUNE 16, 2021 ATTACHMENT A N301141 November 5, 2018 CLA-2–85:OT:RR:NC:N2:209 CATEGORY: Classification TARIFF NO.: 8517.62.0020 CARL W. M ERTZ TP-LINK USA CORP 145 SOUTH STATE COLLEGE BLVD SUITE 400 BREA, CA 92821 RE: The tariff classification of wireless network adapters from China DEAR MR. MERTZ: In your letter dated October 15, 2018, you requested a tariff classification ruling. The first item concerned is the “Archer T4U AC1300” wireless network adapter. This is a USB 3.0 network adapter with a folding external dual band PIFA antenna. This antenna arm has 2 high gain transmitters built-in al- lowing up to a 400 Mbp transmission rate on the 2.4GHz spectrum and up to a 867 Mbp transmission rate on the 5GHz spectrum. This device is compat- ible with the 802.11 a/b/g/n/ac wireless standards. Transmit power is <20dBm. The adapter is compatible with the following modulations DBPSK, DQPSK, CCK, OFDM, 16-QAM, 64-QAM, 256-QAM. The second item concerned is the “Archer T9E AC1900” wireless network adapter. This is a PCI-E network adapter with 3 detachable external omni- directional antennas allowing up to a 600 Mbp transmission rate on the 2.4GHz spectrum and up to a 1300 Mbp transmission rate on the 5GHz spectrum. This device is compatible with the 802.11 a/b/g/n/ac wireless stan- dards. Transmit power is <20dBm. It is CE, FCC, RoHS certified. The adapter is compatible with the following modulations DBPSK, DQPSK, CCK, OFDM, 16-QAM, 64-QAM, 256-QAM. The third item is the “TL-WN821N N300” USB network adapter. This USB adapter is a 3.0 single band network adapter with an on-board internal antenna. This device has 2 transmitters built in allowing up to a 300 Mbp transmission rate on the 2.4GHz spectrum. This device is compatible with the 802.11 /b/g/n/ wireless standards. Transmit power is <20dBm. It is CE, FCC, RoHS certified. The adapter is compatible with the following modulations DBPSK, DQPSK, CCK, OFDM, 16-QAM, 64-QAM, 256-QAM. The fourth item is the “TL-WN881ND N300 PCI-E” wireless network adapter. This PCI-E device has 2 single band external detachable antennas allowing up to a 300 Mbp transmission rate on the 2.4GHz spectrum. This device is compatible with the 802.11 /b/g/n/ wireless standards. Transmit power is <20dBm. It is CE, FCC, RoHS certified. The adapter is compatible with the following modulations DBPSK, DQPSK, CCK, OFDM, 16-QAM, 64-QAM, 256-QAM. The applicable subheading for the “Archer T4U AC1300” wireless network adapter, the “Archer T9E AC1900” wireless network adapter, the “TL- WN881ND N300 PCI-E” wireless network adapter and the “TL-WN881ND N300 PCI-E” wireless network adapter will be 8517.62.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Telephone sets...; other apparatus for the transmission or reception of voice, images or 5 CUSTOMS BULLETIN AND DECISIONS, VOL. 55, NO. 23, JUNE 16, 2021 other data...: Other apparatus for transmission or reception...: Machines for the reception, conversion, and transmission or regeneration of voice, images or other data, including switching and routing apparatus: Switching and routing apparatus.” The general rate of duty will be Free. 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. Subse- quently, 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.