CLA-2 CO:R:C:M 556908 DWS

District Director
U.S. Customs Service
Main and Stebbins Streets, PO Building
P.O. Box 1490
St. Albans, VT 05478

RE: Protest No. 0201-92-100282; Maple Sap Evaporating Equipment; HQ 089242; 9817.00.50

Dear Sir:

This is our response on Application for Further Review of Protest No. 0201-92-100282, dated May 6, 1992, concerning your action in classifying and assessing duty on maple sap evaporating equipment under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The subject merchandise consists of evaporating equipment used on farms to produce maple syrup from the sap of the sugar maple tree. The sap is collected and then circulated through evaporating pans in order to boil off water. This process is continued until the consistencey of syrup has been reached.

ISSUE:

What is the proper classification of the evaporating equipment under the HTSUS?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in acordance with the General Rules of Interpretation (GRI's), taken in order. GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

The merchandise was entered under subheading 9817.00.50, HTSUS, which provides for: "[m]achinery, equipment and implements to be used for agricultural or horticultural purposes." However, the entries were liquidated under subheading 8419.89.50, HTSUS, which provides for: "[m]achinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes: [o]ther machinery, plant or equipment: [o]ther: [o]ther."

Evaporating equipment similar to the subject merchandise was classified in HQ 089242, dated August 13, 1991. In that ruling, it was stated that:

[t]he issue then to be resolved is whether the . . . evaporator [is] eligible, upon certification of actual use, for-duty free entry under subheading 9817.00.50, HTSUS. . . It remains our opinion that the processing of maple sap into maple syrup . . . by the evaporator, though performed on a farm, is not an agricultural or horticultural activity. Unlike cleaning, sorting, and grading of agricultural products, the processing of sap into maple syrup is more than a simple preparation of the product for market. It changes the agricultural product, maple sap, to maple syrup. Consequently, it is our opinion that the . . . evaporator [does] not qualify for duty-free treatment under subheading 9817.00.50, HTSUS.

We adhere to the reasoning given in HQ 089242, and it continues to be our position that the subect evaporating equipment is not classifiable under subheading 9817.00.50, HTSUS, but is classifiable under subheading 8419.89.50, HTSUS.

HOLDING:

The subject merchandise is classifiable under subheading 8419.89.50, HTSUS, which provides for: "[m]achinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change of temperature such as heating, cooking, roasting, distilling, rectifying, sterilizing, pasteurizing, steaming, drying, evaporating, vaporizing, condensing or cooling, other than machinery or plant of a kind used for domestic purposes: [o]ther machinery, plant or equipment: [o]ther: [o]ther."

The protest should be denied in full. A copy of this decision should be attached to the Customs Form 19 and provided to the protestant as part of the notice of action on the protest.

Sincerely,

John Durant, Director