CLA-2 CO:R:C:F 089537 ALS
Mr. Chris B. Rounding, C.A.
Pelton Reforestation Ltd.
12930 203rd Street
Maple Ridge, British Columbia
Canada V3Z 1A1
RE: Forest Tree Seedlings in a Mixture of Nutrients,
Fertilizers, Limestone, Phosphates, Crushed Rock, Sawdust and
Peat Moss Contained in a Polystyrene Block
Dear Mr. Rounding:
This is in reply to your letter of May 8, 1991, to our New
York office, concerning the classification of seedlings under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA). Samples of the subject articles with the growing
medium attached and with the growing medium removed were
provided.
FACTS:
The articles at issue are forest tree seedlings from Canada
which are primarily used for reforestation. They include but are
not limited to pines, firs and spruces. The seedlings are sown
as seeds into polystyrene blocks by mechanical seeders. Each
block is filled with a mixture of micro nutrients, slow release
fertilizers, crushed limestone, crushed phosphates, sterilized
crushed rock sawdust and peat moss. Each of the species requires
a different level of each component. The peat moss never exceeds
70 per cent of the component content. This mixture remains
attached to the roots at the time of importation.
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ISSUE:
Is the medium in which the seedlings are grown considered
soil for tariff purposes and is it attached to the seedlings at
the time of importation?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUSA is governed
by the General Rules of Interpretation (GRI's) taken in order.
GRI 1 provides that the classification is determined first in
accordance with the terms of the headings and any relative
section and chapter notes. If GRI 1 fails to classify the goods
and if the heading and legal notes do not otherwise require, the
remaining GRI's are applied, taken in order.
In considering the headings and subheadings under which the
subject articles may be classified, we note, as you suggested, it
is clear that the classification under the provision for other
live plants (including their roots), cuttings and slips; mushroom
spawn: Other: Other: under subheading 0602.99, HTSUSA, is
appropriate. After noting that the Import Specialist Team at
Blaine, Washington, informally advised you that the seedlings
would be classified under subheading 0602.99.90, HTSUSA, as other
trees and shrubs, you suggested that classification under
subheading 0602.99.60, HTSUSA, as other trees and shrubs with
soil attached to roots, would be appropriate. We agree with your
conclusion regarding the classification of the seedlings.
In order to determine which of the alternative subheadings
is appropriate, it is necessary to ascertain whether the growing
medium in which the seedlings arrive in the United States is soil
for tariff purposes and whether it is attached to the roots of
the seedlings. The mixture is composed of micro nutrients, slow
release fertilizers, crushed limestone, crushed phosphates,
sterilized crushed rock, sawdust and peat moss in varying
quantities, depending on the type of seedling. Peat moss never
exceeds 70 per cent of the mixture content.
You stated that the mixture fits the definitions of soil
commonly used by the United States Department of Agriculture and
Agriculture Canada, an independent soil analysis laboratory as
well as a dictionary definition of that term. We have considered
that information. We also considered Customs historical
treatment of such mixtures. In a Customs Headquarters ruling of
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February 10, 1982, (file 068273), we referenced the definition of
soil employed by the United States Department of Agriculture. We
therein noted that soil was defined as "The loose surface
material in which plants grow, in most cases consisting of
disintegrated rock with an admixture of organic material and
soluble salts." Based thereon, we agree that the mixture in
which the seedlings arrive in the United States is soil for
tariff purposes.
This leaves the question as to whether this soil is attached
to the roots of the seedlings at the time of their importation.
In comparing the pictures and samples of the seedlings with the
soil attached, which you intend to import, with the pictures and
sample of the seedlings with the soil removed, which you
submitted for comparative purposes, we agree that the articles to
be imported qualify as seedlings with the soil attached to the
roots.
HOLDING:
Seedlings with soil attached are classifiable under
subheading 0602.99.60, HTSUSA, as living plants with soil
attached to the roots, and dutiable at a general rate of duty of
3 per cent ad valorem. The general rate of duty effective for
the period which ends at the close of December 31, 1992, is 1.7
per cent ad valorem in accordance with subheading 9903.10.02,
HTSUSA.
Seedlings, the product of Canada, are, in accordance with
General Note 3(c)(vii)(B), HTSUSA, eligible for a free rate of
duty, upon compliance with the provisions of the United States -
Canada Free Trade Agreement (FTA) and section 10.301 et seq.,
Customs Regulations (19 CFR 10.301 et seq.).
Sincerely,
John Durant, Director
Commercial Rulings Division