CLA-2-84:OT:RR:NC:N1:102
Mr. Paul Vroman
Radix Group International dba DHL Global Fowarding 2660 20th Street Port Huron, MI 48060
RE: The tariff classification of an axial fan from Denmark
Dear Mr. Vroman:
In your letter dated July 2, 2018, on behalf of your client Big Dutchman Incorporated of Holland, Michigan, you requested a tariff classification ruling. Descriptive information was provided.
The AirMaster Blue 170C is an axial fan that is permanently installed onto the walls of a poultry housing. The fan has a plastic housing and is powered by a motor that has a power output of 2.2 kilowatts. The fan is used to circulate air in the poultry housing.
In your request, you suggest that the applicable subheading for the High-Performance Fan Assembly is 8414.59.6590, Harmonized Tariff Schedule of the United States (HTSUS) ,which provides for Air or other gas compressors and Fans: Other: Other: Other: Suitable for use with motor vehicles. While we agree that the fan is classified in HTSUS heading 8414, the fan is permanently installed onto the walls and therefore, provided for elsewhere.
The applicable subheading for axial fan will be 8414.51.9060, HTSUS, which provides for Air or other gas compressors and Fans: Table, floor, wall, window, ceiling or roof fans,with a self-contained electric motor of an output not exceeding 125W: For permanent installation:Other. The general rate of duty will be 4.7 percent ad valorem.
In your submission, you propose that the subject axial fan be considered for duty-free treatment as agricultural or horticultural machinery under subheading 9817.00.50, HTSUS or under subheading 9817.00.60, which provides for parts to be used in articles provided for in headings 8432, 8433, 8434 and 8436, whether or not such parts are principally used as parts of such articles and whether or not covered by a special provision within the meaning of additional U.S. rule of interpretation 1(c).
Subheadings 9817.00.50, HTSUS, and 9817.00.60, HTSUS, are actual use provisions. To fall within either special classification, a three-part test must be met. First, the subject merchandise must not be excluded from the heading under Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2, HTSUS. Secondly, the terms of the headings must be met in accordance with GRI 1, which provides that classification is determined according to the terms of the headings and any relative section or chapter notes. Thirdly, the article must comply with the actual use regulations under Section 10.131 through 10.139, Customs Regulations (19 CFR 10.131 through 10.139).
In regards to subheadings 9817.00.50 and 9817.00.60, HTSUS, the merchandise is classifiable under subheading 8414.51.9060, HTSUS. This subheading is not excluded from classification in either 9817 subheading by operation of Section XXII, chapter 98, Subchapter XVII, U.S. Note 2, HTSUS.
The second part of the test calls for the unit to be included within the terms of the subheadings. Subheading 9817.00.50, HTSUS, as required by GRI 1, states the unit must be "machinery”, “equipment" or "implements" used for "agricultural or horticultural purposes". In this office’s opinion, the subject merchandise is "machinery" which fulfills the requirement of an agricultural pursuit.
The terms of subheading 9817.00.60, HTSUS, as per GRI 1, state this subheading provides for (1) “parts” which are (2) intended for use in articles provided for in headings 8432, 8433, 8434 and 8436. In this instance, the subject merchandise does not meet the terms of subheading 9817.00.60 because although it is used in the poultry housing unit, it is a separate and distinct commercial entity not a “integral, constituent, or component part, without which the housing unit to which it is to be joined, could not function as such article.”
Additionally, the three conditions required by 19 CFR 10.133 which must be met to receive duty preference for actual use are:
(a) Such use is intended at the time of importation; (b) The article is so used; and (c) Proof of use is furnished within 3 years after the date the article is entered or withdrawn from warehouse for consumption.
Based on the information provided, the axial fan described above is classifiable in subheading 9817.00.50, HTSUS, if the actual use conditions and requirements of Sections 10.131 through and including 10.139, Customs Regulations, are met.
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 the 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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division