Newly Released CBP HQ Rulings July 6

July 10, 2023 by Ben Perkins|Customs Rulings

The Customs Rulings Online Search System (CROSS) was updated July 6 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):

H287055: Application for Further Review of Protest No. 3901-16-100021; Tariff classification of motor control boards and electronic speed controllers for remote-controlled vehicles

Ruling: The subject electronic speed controllers (ESCs) and motor control boars (MCBs) are classified under Harmonized Tariff Schedule subheading 8504.40.40 as “Electrical transformers, static converters (for example, rectifiers) and inductors; parts thereof: static converters: speed drive controllers for electric motors.”

Issue: Are the MCB and ESC units classified under heading 8504 as “electrical transformers...,” under heading 8537 as “Boards, panels, consoles, desks, cabinets and other bases...," or under heading 9503 as “Tricycles, scooters, pedal cares and similar wheeled toys..."?

Items: Motor control boards and electronic speed controllers, which are alleged to be solely or principally used with remote-controlled vehicles. ESCs are electronic circuit board assemblies which are installed into and used in the control and operation of RCVs. Specifically, ESCs control the speed and direction of the electric motor that provides propulsive force to the RCV, while MCBs are used to control the operation of the RCV either automatically or through remote radio commands from the user. The protested entries consist of five different models of ESCs and one model of an MCB.

Reason: As the ESCs are specifically designed to control the speed and direction of the electric motor of the RCV in which they are installed, they are classified as “static converters and specifically as speed drive controllers for electric motors.” While the MCBs perform a variety of functions such as gyro stabilization, its principal function is to control the speed and direction of the RCV through the ESC component. The quadcopters and boats to which the ESC and MCBs are installed after importation are not toys. An object is a toy only if it is designed and used for amusement, diversion or play, rather than practicality.

Ruling Date: April 5, 2023