CLA-2 CO:R:C:G 084704 TLS
Mr. Thomas B. Teubner
Valmont Industries, Inc.
Valley, Nebraska 68064
RE: Duty free status of irrigation pipe from Canada
Dear Mr. Teubner:
Your letter of April 6, 1989 to our Pembina, North Dakota
office requested a ruling on the classification of polyethylene
irrigation pipe and whether or not it is eligible for duty free
status under the Harmonized Tariff Schedule of the United States
Annotated (HTSUSA). It has been referred to this office for a
reply on the issue of duty free status.
FACTS:
The irrigation pipe is imported from Canada and is made of
polyethylene. It is flexible and of medium density, designed to
be mounted onto reels on irrigation equipment trailers for
agricultural use. It is cut to specific lengths so that it may
be readily attached to the trailers. The pipe is used to
complete manufacturing of the trailers. You request that we
apply duty free status to this product under HTSUSA.
ISSUE:
Whether the polyethylene irrigation pipe is entitled to duty
free treatment under the appropriate heading of HTSUSA, and if
so, which of the following subheadings apply:
1) 9817.00.6000, HTSUSA, covering parts to be used in articles
provided for in headings 8432, 8433, 8434 and 8436, whether or
not such parts are principally used as parts of such articles and
whether or not covered by a specific provision within the meaning
of additional U.S. rule of interpretation 1(c);
2) 9817.00.5000, HTSUSA, covering machinery, equipment, and
implements to be used for agricultural purposes.
LAW AND ANALYSIS:
The New York Seaport has issued a ruling classifying this
pipe under HTSUSA subheading 3917.32.0020, covering tubes, pipes
and hoses, not reinforced or otherwise combined with other
materials, without fittings, of polyethylene. The pipe is
designed to be mounted onto reels on irrigation equipment
trailers which are marketed for agricultural use. The General
Rules of Interpretation (GRI) and Additional U.S. Rules of
Interpretation (USRI) govern classification of products under
HTSUSA. As provided for under USRI 1(b), a tariff classification
controlled by the actual use to which the imported goods are put
in the United States is satisfied only if such use is intended at
the time of importation, the goods are so used and proof thereof
is furnished within 3 years after the date the goods are entered.
The importer's purchasing manager has furnished a letter
certifying that the irrigation pipe is imported for resale in the
agricultural market and is to used only for irrigation purposes.
Subheading 9817.00.6000 provides for a product that is a
part to used in articles provided for in headings 8432, 8433,
8434, and 8436. The irrigation pipe is to be used as part of an
irrigation equipment trailer. The irrigation equipment trailer
is not an article provided for under any of the headings listed
above. The polyethylene irrigation pipe is not classifiable
under subheading 9817.00.6000.
Subheading 9817.00.5000 provides for a product that is
either machinery, equipment, or an implement to be used for
agricultural or horticultural purposes. The irrigation pipe is
characterized as agricultural equipment because it is an
apparatus with an intended agricultural use and is actually used
in that manner. It is not used for any other purpose. The
irrigation pipe is properly classifiable under subheading
9817.00.5000.
HOLDING:
The polyethylene irrigation pipe is properly classified
under subheading 9817.00.5000, HTSUSA, as equipment to be used
for agricultural purposes and is therefore entitled to duty free
treatment upon compliance with 19 C.F.R. 10.138.
Sincerely,
John Durant, Director