NY 855567

Sept. 18, 1990


CLA-2-90:S:N:N1:102 855567

9817.00.5000

Mr. Jeffrey W. Holt
F.W. Myers & Co. Inc.
Edison Plaza Drive
660 Plaza Drive
Detroit, Michigan 48226

RE: The tariff classification of the Dryer Master and related sensors from Canada

Dear Mr. Holt:

In your letter dated August 17, 1990, on behalf of your client, Dantec Electronics Limited, you requested a tariff classification ruling.

The Dryer Master series is a group of computerized process controllers designed for the drying of both grain products, such as corn, wheat and rice, and industrial products, such as pet food, plastics and food products. The DMC, DMS and DMR models are equipped with moisture and temperature sensors and have either standard or optional strip printers and modems. The Dryer Master units are primarily designed for grain drying operations. The system monitors both the moisture level of the grain and the temperature of the dryer. By regulating both temperature level and flow-through rate, the controller is able to output grain at a pre-selected moisture level. The model 2500 Dryer Master is equipped in a similar manner but is used more for industrial applications.

You also state in your inquiry that both the strip printer and modem are products of the United States and assembled into the Dryer Masters in Canada. As such, that part of the finished unit which represents the cost of the American components may be free of duty under the provisions of subheading 9801.00.1035 of the Harmonized Tariff Schedules, which provides for:

"articles assembled abroad in whole or in part of fabricated components, the product of the United States, which (a) were exported in condition ready for assembly without further fabrication, (b) have not lost their physical identity in such articles by change in form, shape or otherwise, and (c) have not been advanced in value or improved in condition abroad except by being assembled and except by operations incidental to the assembly process such as cleaning, lubricating and painting."

The applicable subheading for the Dryer Master series (including sensors entered as part of the system) will be 9032.89.6070, Harmonized Tariff Schedule of the United States (HTS), which provides for automatic regulating and controlling instruments; humidity control. The duty rate will be 4.9 percent ad valorem. The temperature sensors, if entered separately, are classified under 9025.19.0000, HTS, which covers thermometers, not combined with other instruments. The duty rate would be 5 percent ad valorem. The humidity sensors, if entered separately, would be classifiable under the provision covering other instruments for chemical or physical analysis, HTS subheading 9027.80.4030, and dutiable at 4.9 percent ad valorem. HTS subheading 9817.00.5000, which is free of duty, is the provision covering machinery, equipment and implements to be used for agricultural or horticultural purposes. Subject to actual use certification, in keeping with sections 10.131 - 10.134 of the Customs Regulations, the items classified above would, in the alternative, be classified in subheading 9817.00.5000.

Goods classifiable under subheadings 9027.80.4030 and 9032.89.6070, HTS, which have originated in the territory of Canada, will be entitled to a 3.9 percent ad valorem rate of duty under the United States-Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations. Goods classifiable under subheading 9025.19.0000, HTS, which have originated in the territory of Canada, will be entitled to a 4 percent ad valorem rate of duty under the United States-Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Jean F. Maguire
Area Director
New York Seaport