Topic: US Tariff Ruling N297495 = 2.6% mandatory tariff on bitcoin mining hardware - page 11. (Read 26790 times)

Makes sense,

But on a side note, ras pi got hit with tarrifs back in july (we import those as well)  as they are part of an adp machine, they dont classify as full adp machine.  8473.30.20 Unless it includes crt.  switched to bangalore supllier now no tariff, but still the same strange classification.

Of course the xilinx SoC is programmable as is the ARM chip used on a RasPi and same for BeagleBone CPU's which are what Bitmain and others used before the s9.

However -- they just handle I/O to the ASIC processors but unlike feeding I/O to a bank of GPU's, the ASIC's have one function and one function only - process SHA256D hashes. That function cannot ever be changed (again unlike GPU's that can readily be programmed to do a plethora of number crunching functions). Those non-programmable super-speed ASIC's are what make any ASIC-based miner regardless of the embedded algo different from the exempt ADP machines. That designed for single purpose function is key to their speed and at the same time their downfall. Ask D3 owners about that.

In this case, that unchangeable core functionality means that by the Rulings any ASIC-based miner has the 2.6% duty assessment applied to it. We are buying these expensive miner to mine with and not to tear apart or re-purpose their relatively inexpensive I/O processors for mundane needs.

edit: In the case of Avalons, at least the controllers - which are just regular, fully programmable and otherwise very nice and useful RasPi's DO fall under the normal ADP exemptions. Just the miners themselves do not.
edit edit: Forgot about the 'data server - no terminal' distinction on the RasPi's so they are not complete ADP's.

Impractical yes of course,  but customs definitions do not rely on practicality, just it can or cant be reprogrammed.

Sure, in the sense that you can write shell scripts, install software, serve webpages, etc.

But it would be impractical to use an antminer for anything besides mining.

So after thinking about this, would you consider the xilinx zynq chip to be programmable?

Lesson learned i think is dont write a letter requesting a tariff classification ruling.  I think people have no concept how much that one letter cost the industry.

No PSUs for either of us. Nothing at all different other than carrier.

We have the same retroactive corrections, six figures as well, cant fight in court.  At the end of the day, if you import, its your job to know what hts code to use, and correct the import docs if incorrect.  The ruling is only technically a clarification of a status that already existed.

This is a huge cash grab now for the gov, they will eventually hit every import from bitmain ever.

Lesson learned i think is dont write a letter requesting a tariff classification ruling.  I think people have no concept how much that one letter cost the industry.

Yours without PSUs?

His with PSUs?

Without PSUs = a Component = 2.6%

WIth PSUs = a complete unit and a different classification and a 20% fee?

Well it appears to me that the new clarification of the classification of the miners is what is causing the additional import fees.

Even before the new 4/26/2018 to 12/31/2050 for 85437099 clasification, the old one from 7/1/2016 to 4/25/2018 under this 85437099 classification the import duties were the 2.6%

Its that now they are starting to understand what this equipment is and reclassifying it retroactively on new understandings.

-M

Its all so screwed up.

I recently purchased 4 z9 minis from bitmain and paid $37 in customs fees.

My coworker purchased 2 z9 minis and UPS charged him a $506 customs fee.

Both out of the same batch and delivered within days of each other.

Now THAT is something I would fight in court!

I do not see any way that CBP can be justified in retroactively charging additional duty from that far back. There is no way an importer could be aware of them not being charged the correct fee because this ruling only came down last June. If CBP has a problem with the new duty fees vs the old ones - that is their problem.

While I am not a lawyer to me it would be the same as retroactively changing (increasing) the punishment for crimes -- that is definitely not allowed.

Do you think for 1 minute that they will try the same thing and go after companies because Tariffs got raised/enacted? Oh yeah, the automakers, steel users, etc would just LOVE that...

This is exactly what happened to us. We received a mid 6 figure bill for things we imported before any of this was even a law.

Not exactly from now on. I just got served a notice of action today for miners I imported in November of 2017 that the now clarified classification will retroactively be applied to all of my imports and this could result in additional fees due.

Since the miners were more costly then the 2.6% is a going to be a lot more per miner.

The 25% one is really tough.  But europe has been doing Vat at 17 to 21% for years.

Bottom line it will be interesting to see how it plays out.

I think China blinks  then does some concessions to US and tariff ends in under 6 months.

For your business it is difficult.   It leaves you with only GMO and and Triple-1 to source  asic miners.

Its not arguing the classification, that is the correct one.  It is the filing and pressure of the exclusion to the 25%.

more references.

https://ustr.gov/sites/default/files/files/Press/Releases/301FRN.pdf

https://www.usitc.gov/publications/docs/tata/hts/bychapter/1501c85.pdf

Ah my main man donald breathing life back into gpu mining.

Also note that this is from Chinese gear not Japanese gear.

https://rulings.cbp.gov/ruling/N297495


Thus GMO gets a boost

As does Triple-1

both Japanese based.

I don't see how your attorneys could argue against it.. GPU rigs, sure they should fall under the exemptions as they are freely programmable.

ASIC-based miners however are much like a cash register or hand-held/desktop calculator. Yes modern ones offer high flexibility in addressing their core functions but in the end they are fixed-purpose data devices and both are charged import duty.

Seems our top broker is looking pretty deep into this too. I'll DM you if there's any news I can share.