CLA-2 CO:R:C:M 088358 JMH
Mr. Jim Barbeau
A.N. Deringer, Inc.
P.O. Box 824
Fort Covington, NY 12937-0824
RE: Modification of New York Ruling Letter 830398, dated October
19, 1988; barn cleaner replacement chain; agricultural
machinery, equipment and implements; Section XXII, Chapter
98, Subchapter XVII, U.S. Note 2(ij); Headquarters Ruling
Letter 086211, dated March 24, 1990; Headquarters Ruling
Letter 087076, dated June 14, 1990
Dear Mr. Barbeau:
This office has been asked to review the classification of
certain barn cleaner replacement chains which were the subject of
New York Ruling Letter 830398 ("NY 830398"), dated October 19,
1988.
FACTS:
The articles in question are various types of barn cleaner
replacement chains. The chains were described in NY 830398 as
follows:
The first type incorporates flat links which alternate with
paddles. The paddles are 2 inches x 2 inches x 1/4 angle
iron. The pitch is 4 1/2 inches, and there are five parts
per pitch. The second type of barn cleaner chain, "hook and
eye", consists of alternating links and paddles which are
linked together in a hook and eye arrangement. There is
only one part per pitch.
NY 830398 classified the barn cleaner chains in subheading
7315.12.00, Harmonized Tariff Schedule of the United States
Annotated ("HTSUSA"), as "Chain and parts thereof, of iron or
steel...Articulated link chain and parts thereof...Other
chain..." Additionally, NY 830398 stated that provided Customs
Regulations 10.131-10.139, 19 C.F.R. 10.131-10.139 were met, the
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chain was eligible for classification under subheading
9817.00.50, HTSUSA. Subheading 9817.00.50 grants duty free
status to certain agricultural equipment, apparatus and
machinery.
ISSUE:
Whether the barn cleaner chain is entitled to classification
under heading 9817.00.50, as agricultural machinery, equipment
and implements.
LAW AND ANALYSIS:
The classification of merchandise under the HTSUSA is
governed by the General Rules of Interpretation ("GRIs)". GRI 1,
HTSUSA, states in part that "for legal purposes, classification
shall be determined according to the terms of the headings and
any relative section or chapter notes..." The heading in
question, heading 9817.00.50, states the following:
9817.00.50 Machinery, equipment and implements to
be used for agricultural or
horticultural purposes...
Headquarters Ruling Letter 086211 ("HQ 086211"), dated March
24, 1990, and Headquarters Ruling Letter 087076 ("HQ 087076"),
dated June 14, 1990, promulgated a three-part test for the
determination of when an item is "machinery, equipment, and
implements" under heading 9817.00.50. The three steps which
must be met are:
(1) The article in question must not be excluded from
the heading under Section XXII, Chapter 98,
Subchapter XVII, U.S. Note 2, HTSUSA.
(2) The article to be classified must be the article
that performs the agricultural or horticultural
pursuit in question. If the article only performs
a portion of that pursuit, it is a part, not
machinery, equipment or an implement within the
heading.
(3) The article must have the actual use certification
required under 10 C.F.R. 10.138.
The barn cleaner chains are classified within subheading
7315.12.00. Section XXII, Chapter 98, Subchapter XVII, U.S. Note
2(ij), HTSUSA, excludes articles of chapter 73 from
classification within heading 9817.00.50. Subheading 7315.12.00
is within chapter 73. Therefore, the barn cleaner chains cannot
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be classified in heading 9817.00.50. The chains are not
entitled to duty free entry. Since the barn cleaner chains fail
the first part of the test, there is no need to examine the other
two steps.
HOLDING:
This ruling affirms that the barn cleaner chains, one of the
subjects of NY 830398, are classified within subheading
7315.12.00. However, NY 830398 was incorrect to classify the
barn cleaner chains in heading 9817.00.50. Section XXII, Chapter
98, Subchapter XVII, U.S. Note 2(ij), HTSUSA, excludes articles
of chapter 73 from classification within heading 9817.00.50.
Subheading 7315.12.00 is within chapter 73, therefore, the chains
are excluded from 9817.00.50. The chains are not entitled to
duty free entry.
In order to insure uniformity in Customs classification of
this merchandise and to eliminate uncertainty we are modifying NY
830398. This modification is effective with the date of this
letter. After your review of this letter should you disagree
with the decision's legal basis, you are invited to submit any
arguments you might have with respect to this matter for our
review. Any arguments you wish to submit should be received
within 30 days of the date of this letter.
This notice should be considered a modification of NY 830398
in accordance with Customs Regulation 177.9(d)(1), 19 C.F.R.
177.9(d)(1). This decision is not to be retroactively applied to
NY 830398, and therefore, this ruling will not affect past
transactions for the importation of your client's merchandise
entered under NY 830398. See Customs Regulation 177.9(d)(2), 19
C.F.R. 177.9(d)(2). Furthermore, NY 830398 will not be valid
precedent for the purposes of future transactions in merchandise
of this type.
We recognize that future transactions may be adversely
affected by this modification since current contracts for
importation arriving at United States ports subsequent to this
ruling will not be classified pursuant to NY 830398. If such a
situation should arise your client may, at their discretion,
notify this office and apply for relief from the binding effects
of this decision as may be warranted by the circumstances.
Sincerely,
John Durant, Director
Commercial Rulings Division