CLA-2-84:OT:RR:NC:N1:104
Ms. Catherine L. Spencer
Freight Expeditors
6920 Engle Rd.
Suite II
Middleburg Heights, OH 44130
RE: The tariff classification of an ANFO Hopper from China
Dear Ms. Spencer:
In your letter dated October 24, 2018 on behalf of your client, SME USA Corp., you requested a tariff classification ruling.
The imported product, an ANFO Hopper, is a stainless steel covered bin, weighing 423 kg net/545 kg gross with dimensions of 2440 x 1220 x 1700 mm. The internal volume of the bin is 1.35 cubic meters with a 1600 liter capacity. There is an opening in the bottom of the hopper and a bottom mounted auger. The function of the auger is to move the material around in a consistent manner. The material is pre-mixed and is manually fed through the top of the hopper in order to load the mixture into the bin. The attached mesh attached to the hopper prevents rocks, tree leaves and branches from entering the bin.
“ANFO” stands for Ammonium Nitrate/Fuel Oil mixture which is an industrial blasting agent used in mining, quarrying and construction operations. The ANFO materials are loaded into the boreholes and work crews lower the detonators and the boosters into the boreholes. A network of detonators are connected and initiated by a blasting machine. After the blasting agents are detonated, the mineral rock is broken apart and thrown to the ground. The material is then excavated and processed by the crusher into mineral powders or pebbles/sand. The ANFO Hopper is moved to and from the job site by a flatbed truck and dragged by a steel cable by an excavator at the site. The frame accomodates the forklift trucks for loading and unloading the hopper from the truck. It is stand-alone equipment and not an attachment for a skid steer or other equipment. At time of importation, the hopper has no mechanical features. The mechanical features are installed after importation when the customer installs a hydraulic motor and hoses to the auger in order to make the auger functional. The hydraulic motor is not part of the importation.
In your letter, you suggest seven different possible classifications for the instant good, i.e., subheading 7308.90.9590, 8428.39.0000, 8428.90.0290, 8431.39.0080, 8479.89.9499, 8479.90.9496 or 8487.90.0080, HTSUS. It is noted that the ANFO hopper is incomplete at time of importation. Subsequent to importation, a hydraulic motor will be attached to the hopper along with hydraulic oil hoses. The motor and hoses are used to operate the auger. Despite the use of the term “skid steer”, you state that the hopper is “a stand-alone piece of equipment and is not an attachment for a skid steer or other equipment”. This statement is borne out by photographs included in your submission which show the hopper in use. The hopper is not self-propelled. It is said to be “moved to and from the job site by a flatbed truck and dragged via a steel cable by an excavator at the site”. A separate forklift is used to load/unload the hopper from/to the truck.
Merchandise is classifiable under the Harmonized Tariff Schedule of the United States (HTSUS) in accordance with the General Rules of Interpretation (GRIs). GRI 1 states in part that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes. GRI 2(a) extends the scope of the HTSUS headings to include unfinished parts, provided the unfinished parts have the essential character of the finished parts. GRI 2(a) further states that, “Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled”. Under GRI 2(a), the factor or factors which determine essential character will vary with the merchandise. It may, for example, be determined by the nature of a component or components, their bulk, quantity, weight or value, or the role of a component or components in relation to the use of the good. It is the opinion of this office that the hopper components in their imported condition possess the essential character of a complete mechanical hopper.
The Harmonized Commodity Description and Coding System Explanatory Notes (EN’s) constitute the official interpretation of the Harmonized System. While not legally binding on the contracting parties, and therefore not dispositive, the EN’s provide a commentary on the scope of each heading of the Harmonized System and are thus useful in ascertaining the classification of merchandise under the HTSUS. CBP believes the EN’s should always be consulted. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).
The ENs to heading 84.79 provide in relevant part:
This heading is restricted to machinery having individual functions, which:
(a) Is not excluded from this Chapter by the operation of any Section or Chapter Note.
and (b) Is not covered more specifically by a heading in any other Chapter of the Nomenclature. and (c) Cannot be classified in any other particular heading of this Chapter since: (i) No other heading covers it by reference to its method of functioning, desription or type.
and (ii) No other heading covers it by reference to its use or to the industry in which it is employed.
or (iii) It could fall equally well into two (or more) other such headings (general purpose machines).
The machinery of this heading is distinguished from the parts of machinery, etc., that fall to be classified in accordance with the general provisions concerning parts, by the fact that it has individual functions.
For this purpose the following are to be regarded as having “individual functions”: (A) Mechanical devices, with or without motors or other driving force, whose function can be performed distinctly from and independently of any other machine or appliance.
The ANFO hopper’s function can be performed independently of any other machine or appliance. In addition, it is not more specifically provided for any other provision of the Nomenclature. In view of these facts, this office believes the ANFO hopper, in its condition as imported, represents an incomplete mechanical machine of heading 8479. Thus, classification in subheading 7308.90.9590, 8428.39.0000, 8428.90.0290, 8431.39.0080, 8479.90.9496 or 8487.90.0080, HTSUS, would not be appropriate.
The applicable subheading for the ANFO Hopper will be 8479.89.9499, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Other: Other: Other”. The rate of duty will be 2.5 percent ad valorem.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S.
Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02,
9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8479.89.9499, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8479.89.9499, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading
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 Patricia O’Donnell at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division