U.S. trade court: Tariff classification of printed circuit assemblies
Tariff classification of printed circuit assemblies
The U.S. Court of International Trade today granted the government’s motion for summary judgment in a case concerning the tariff classification of printed circuit assemblies (manufactured for use as components in programmable “controllers” that are used in conjunction with industrial robots).
- On liquidation, Customs and Border Protection (CBP) classified the printed circuit assemblies under the Harmonized Tariff Schedule of the United States (HTSUS) subheading 8538.90.30, subject to customs duty at 3.5% ad valorem. This subheading applies for “Parts suitable for use solely or principally with the apparatus of heading 8535, 8536 or 8537: Other: Printed circuit assemblies: Other.”
- The importer, however, claimed that the printed circuit assemblies were properly classifiable under HTSUS subheading 8471 (and duty-free). This subheading applies for “Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included.”
The trade court explained that the dispute centered on whether the printed circuit assemblies were an automatic data processing machine (or machines) or were “units” of an automatic data processing machine. After examining the positions of each party, the court concluded that the merchandise was classified properly under subheading 8538.90.30, and granted the government’s motion for summary judgment.
The case is: FANUC Robotics America, Inc. v. United States, Slip Op. 19-94 (CIT July 26, 2019). Read the trade court’s decision [PDF 562 KB]
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