CLA-2
OT:RR:CTF:TCM H277699 PTM
TARIFF NO: 7307.93.30
Oscar Gonzalez
GRNR Attorneys LLC
Park Place Center,
2911 Turtle Creek Blvd, Suite 300
Dallas, TX 75219
Dear Mr. Gonzalez,
This is in response to your correspondence, dated April 29, 2016, requesting a binding ruling on behalf of your client, GT Midwest. The ruling request concerns the tariff classification on the Harmonized Tariff Schedule of the United States (“HTSUS”) of a pivot elbow. In reaching our determination, we have considered your supplemental submission dated February 8, 2017, and the substance of our teleconference on March 2, 2017.
FACTS:
The product at issue is a butt welding pivot elbow of non-alloy steel. The pivot elbow is part of a hydrostatic pivot irrigation system used in agricultural applications. The interior diameter measures approximately 8 inches and weighs approximately 25 pounds. See Fig. A. The pivot elbow attaches from a main water tower perpendicularly to an elevated irrigation arm, which are elevated by wheeled towers which permit the apparatus to be moved. The elevated pipeline arm pivots around the main water tower as water is pumped through the main water tower into the elevated irrigation arm which sprays water over fields. See Fig. B. `
Fig. A:
Fig. B:
You state that the pivot elbow connects to the main water tower through a gage steel vertical inlet pipe. The inlet pipe has two bearing rings to allow it to rotate with the pivot elbow. The pivot elbow connects to the elevated pipeline / irrigation arm through a rubber flex hose by one of seven types of fittings. You further state that the pivot elbow has been specially manufactured solely for use with hydrostatic pivot irrigation systems.
ISSUE:
What is the tariff classification of the pivot elbow?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. GRI 6 requires that the classification of goods in the subheadings of headings shall be determined according to the terms of those subheadings, any related subheading notes and mutatis mutandis, to the GRIs 1 through 5.
The Explanatory Notes (EN) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The HTSUS headings under consideration are the following:
7307 Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel:
7307.93 Butt welding fittings:
7307.93.30 Of iron or nonalloy steel
(Emphasis added)
* * *
8424 Mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines; parts thereof:
8424.90 Parts:
8424.90.90 Other
Note 1(g) to Section XVI, HTSUS, of which Chapter 84 is a part, states:
This section does not cover:
…
(g) Parts of general use, as defined in note 2 to section XV, of base metal (section XV), or similar goods of plastics (chapter 39).
Section XV, Note 2(a) states that “[t]hroughout the tariff schedule, the expression ‘parts of general use’ means: [a]rticles of heading 7307, 7312, 7315, 7317 or 7318 and similar articles of other base metals.” (Emphasis added). Section XV, Note 3 also states that throughout the tariff schedule, the expression “base metals” includes steel.
The EN for heading 73.07 provides:
This heading covers fittings of iron or steel, mainly used for connecting the bores of two tubes together, or for connecting a tube to some other apparatus, or for closing the tube aperture. This heading does not however cover articles used for installing pipes and tubes but which do not form an integral part of the bore (e.g., hangers, stays and similar supports which merely fix or support the tubes and pipes on walls, clamping or tightening bands or collars (hose clips) used for clamping flexible tubing or hose to rigid piping, taps, connecting pieces, etc.) (heading 73.25 or 73.26).
The connection is obtained :
by screwing, when using cast iron or steel threaded fittings;
or by welding, when using butt welding or socket welding steel fittings. In the case of butt welding, the ends of the fittings and of the tubes are square cut or chamfered;
or by contact, when using removable steel fittings.
This heading therefore includes flat flanges and flanges with forged collars, elbows and bends and return bends, reducers, tees, crosses, caps and plugs, lap joint stub ends, fittings for tubular railings and structural elements, off sets, multi branch pieces, couplings or sleeves, clean out traps, nipples, unions, clamps and collars.
Explanatory Note (C) to Section XV provides:
In general, identifiable parts of articles are classified as such parts in their appropriate headings in the Nomenclature…
However, parts of general use (as defined in Note 2 to this section) presented separately are not considered as parts of articles, but are classified in the headings of this Section appropriate to them. This would apply, for example, in the case of bolts specialised for central heating radiators or springs specialized for motor cars. The bolts would be classified in heading 73.18 (as bolts) and not in heading 73.22 (as parts of central heating radiators). The springs would be classified in heading 73.20 (as springs) and not in heading 87.08 (as parts of motor vehicles).”
Accordingly, we must determine whether the instant pivot elbow is classifiable in Section XV as a “part of general use” before we may address whether the instant articles are classifiable in Chapter 84, HTSUS, as a part of a mechanical appliance used as a spraying device. CBP has previously found articles of heading 7307 to be “parts of general use” for the purposes of classification. See, e.g., HQ 967299 (Dec. 21, 2004) (finding a cast iron gas meter swivel to be a part of general use in heading 7307 HTSUS). Consequently, if the pivot elbow is classifiable as a part of general use of heading 7307 HTSUS, classification in heading 8423 is precluded by Note 1(g) to Section XVI.
Heading 7307, HTSUS, provides eo nomine for elbow pipe fittings of steel. Moreover, the EN to heading 73.07 states that the heading covers fittings designed to connect the bores of two tubes together, or for connecting a tube to some other apparatus. The EN provides that the connection can be made with a butt welding.
The instant product is a butt welding pivot elbow of non-alloy steel. The pivot elbow connects a water tower to the irrigation arm of several types of hydrostatic pivot irrigation system. Consequently, the pivot elbow is described by the plain language of heading 7307 as an elbow pipe fitting of steel. Moreover, the pivot elbow meets the description of heading 73.07 to the EN’s inasmuch as it is connects the tubes of the water tower to the irrigation arm. As such, it meets the definition of a “part of general use” for the purposes of Note 2(a) to Section XV, HTSUS.
GT Midwest argues that because the pivot elbows are specially designed for use with hydrostatic pivot irrigation systems, they may not be classified in heading 7307. However, CBP has previously determined that goods in such general classes as bolts, springs, mountings, fittings and similar articles are “parts of general use,” even if specialized for use with specific products. The unique characteristics of the pivot elbow do not negate this concept. For example, in HQ H023503 (Sept. 16, 2009), CBP determined that plastic valve fitting bodies were “parts of general use” for the purposes of classification even though they were designed for and suitable for use solely with the importer’s own finished valves. In HQ 966412, (Sept. 3, 2003), and HQ 966789 (June 21, 2004), CBP arrived at the same conclusion with regard to “oil bolts” for motorcycle brake transmissions. While the oil bolts therein had a specialized feature in that they were hollow and had a hole in their stem to enable the unimpeded passage of fluids, the oil bolts were still, in essence, screws--cylinder shaped metal objects that have threads and a head designed or adapted for tightening by an instrument. As such, they were classifiable in heading 7318, HTSUS. The fact that the oil bolts allowed for the passage of fluids did not negate that they had a significant fastening function. In Honda of America Manufacturing, Inc. v. United States, 625 F. Supp. 2d 1324 (CIT 2009), the CIT affirmed CBP’s approach in HQ 966412 and HQ 966789, concluding that the term “screw” defined the articles at issue and that the oil bolts were correctly classified in heading 7318, HTSUS. Consequently, the fact that the pivot elbow is designed for use in hydrostatic irrigation systems does not preclude its classification as a part of general use. The instant pivot elbow meets the definition of an elbow pipe fitting of heading 7307 and are therefore parts of general use.
GT Midwest cites to several rulings for the proposition that the pivot elbows should be classified in heading 8424 HTSUS. In New York Ruling (“NY”) N011789 (June 22, 2007), CBP classified several plastic irrigation kits in heading 8424 HTSUS. In NY R01828 (May 9, 2005), CBP classified components of a hydroponic garden system in heading 8424 HTSUS. In NY N061596 (June 5, 2009), CBP classified the nozzle of a horticultural irrigation system in heading 8424 HTSUS. In NY 890716 (Oct. 5, 1993), the legacy Customs Service classified a hydroponic growing system in heading 8424 HTSUS. In HQ H230154 (May 4, 2015), CBP classified power turbine engine parts in subheading 8411.91.90 HTSUS. The irrigation kits in NY N011789 cover entire irrigation systems, rather than a single discrete component of an irrigation system as is the case here. Consequently, the analysis contained therein does not govern the classification of the instant product. The remaining products cited are entirely dissimilar from the instant product. Therefore, none of the cited rulings govern the classification of steel pivot elbow. By contrast, in NY N261252, CBP classified a butt weld carbon-steel pivot elbow similar to the instant pivot elbow in subheading 7307.93.3040, HTSUS.
GT Midwest argues that because the pivot elbow is specifically designed for use in its hydrostatic irrigation systems, that it cannot be considered a “part of general use.” We disagree. The term “parts of general use” is defined by Section XV, Note 2(a), HTSUS as “[a]rticles of heading 7307, 7312, 7315, 7317 or 7318 and similar articles of other base metals.” Because we find that the pivot elbow is an article of heading 7307, it is by definition a “part of general use” within the meaning of Section XV, Note 2(a), HTSUS. Consequently, classification in heading 8424 is precluded by Note 1(g) to Section XVI HTSUS.
HOLDING:
By application of GRI 1, including Note 2(a) to Section XV, the pivot elbow is classified in heading 7307 HTSUS. Specifically, it is classified in subheading 7307.93.30, which provides for “Tube or pipe fittings (for example, couplings, elbows, sleeves), of iron or steel: Butt welding fittings: Of iron or nonalloy steel.” The column one, general rate of duty is 6.2% ad valorem. Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
A copy of this ruling letter should be attached to the entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Ieva K. O’Rourke, Chief
Tariff Classification and Marking Branch