CLA-2-84:OT:RR:NC:N1:405
Harold Paul Luks
Luks Cormaney LLP
1730 M Street, NW – Suite 907
Washington DC 20036
RE: The tariff classification of irrigation drippers from Israel
Dear Mr. Luks:
In your letter dated March 7, 2017, on behalf of Netafim Ltd., you requested a tariff classification ruling. Samples were provided.
The merchandise at issue consists of several models of drippers designed for use as components of micro irrigation and drip irrigation systems. The drippers at issue fall into two categories, namely integral in-line drippers and on-line drippers respectively. Integral in-line drippers are designed to be fused into polyethylene plastic dripperlines during the extrusion process, whereas on-line drippers are designed to be inserted into the surface of finished plastic tubes and pipes.
Regarding the integral in-line drippers, you provided samples and information pertaining to drippers used in a host of Netafim dripperlines. The dripperlines into which these drippers will be incorporated are identified by the trade names Typhoon™, Streamline Plus™, DripNet PC™, Uniram™, and Aries™. The drippers, which vary in shape and size, are composed of plastic and are formed with channels and inlets that enable them to distribute controlled amounts of water as part of an irrigation system. You indicate that the in-line drippers in question are imported by themselves and, subsequent to importation, are incorporated into dripperlines in the United States by fusing them into polyethylene plastic pipes during an integrated extrusion process.
The on-line drippers referenced in your submission are identified as Pressure Compensating (PC) Drippers, PCJ Drippers, and Woodpecker Pressure Compensating Drippers. The on-line drippers are designed to be inserted into the surface of blank plastic pipes, pipes that will be installed in an irrigation system. When in use, the drippers deliver precise amounts of water from the pipe to the area targeted for irrigation. The placement and spacing of the drippers on a given pipe will vary depending on the area and/or product to be irrigated.
Based on the information provided with your submission, it is evident that both the in-line and on-line drippers at issue are intended solely for use in irrigation systems. The Harmonized System Explanatory Notes to Heading 8424 indicate that irrigation systems, components of which include dripper lines incorporating the drippers, are covered by that heading. You suggest that the drippers at issue should be classified in subheading 8424.90.9080, Harmonized Tariff Schedule of the United States (HTSUS), which provides for parts of mechanical appliances for projecting, dispersing, or spraying liquids, etc. We agree that the integral in-line drippers would be appropriately classified as parts, particularly since they must be fused into the interior of a newly extruded pipe (in what is presumably a largely irreversible procedure) before they can function as drippers in an irrigation system.
The on-line drippers, however, are another matter. The on-line drippers are intended to be sold directly to an end-user; an end-user that will ultimately insert said drippers into a pipe that will serve as a drip-line. Absent the drippers, the pipe merely serves as a conduit for water. It is the insertion of the on-line drippers that turns it into a drip line in an irrigation system. Consequently, while the fact that the on-line drippers are used in irrigation systems is not in dispute, they would not be classified as parts of subheading 8424.90. New York Ruling Letter N246767, dated November 4, 2013, found that drippers similar to the on-line drippers covered by your submission were classified in subheading 8424.81 (since changed to 8424.82).
The applicable subheading for the integral in-line drippers will be 8424.90.9080, HTSUS, which provides for 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; steam or sand blasting machines and similar jet projecting machines; parts thereof: Parts: Other: Other. The rate of duty will be free.
The applicable subheading for the on-line drippers will be 8424.82.0020, HTSUS, which provides for 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; steam or sand blasting machines and similar jet projecting machines; parts thereof: Other Appliances: Agricultural or horticultural: Irrigation equipment: Other. The rate of duty will be 2.4% ad valorem.
In your submission you inquire about the eligibility of those products not found to be classified as parts of subheading 8424.90 to receive duty-free treatment under subheading 9817.00.50, HTSUS, which applies to machinery, equipment and implements to be used for agricultural and horticultural purposes. As noted above, the on-line drippers covered by your submission were found to be classified in subheading 8424.82. That being said, it is evident that the products are used for agricultural and horticultural purposes. Consequently, the on-line drippers at issue will be eligible for duty-free treatment under subheading 9817.00.50, provided the actual use requirements of Sections 10.131 through 10.139 of the Customs Regulations are satisfied.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Evan Conceicao at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division