CLA-2-84:OT:RR:NC:N1:105
Jennifer Ong
AEssenseGrows
1281 Reamwood Avenue
Sunnyvale, CA 94089
RE: The tariff classification of Vertical Aeroponic Plant Growth Systems from China
Dear Ms. Ong:
In your letter dated June 28, 2019 you requested a tariff classification ruling.
The merchandise under consideration is the Four Layer Vertical Aeroponic Plant Growth System, the Single Layer Aeroponic Plant Growth System and the Two Layer Aeroponic Plant Growth System. All three systems operate in the same manner with the main differences being the number of layers and the size.
The Four Layer Vertical Aeroponic Plant Growth System is for indoor use and is comprised of a 65” x 32” x 83” irrigation and dosing unit connected via both irrigation piping and drainage piping to one or more twelve tub plant growth sections (three tubs per layer). A PVC spray manifold with nozzles fit inside each tub, which sprays nutrient rich fluid to the roots of the plants, which grow through the sixty-three circular cutouts of the tray that sit on top of each tub. The plant stems are suspended in each cutout by neoprene collars inserted in cup holders that sit in the cutouts. The irrigation and dosing unit is comprised of a 50 gallon PVC reservoir with an aluminum cover and seven one-gallon bottles, each with a pump, which are mounted into an aluminum T-slot frame structure with four legs and caster wheels. Integrated above each tub is an LED flat panel light. PH, EC, and temperature sensors sit in the reservoir, which provide measurements used by the operating software to determine the dosage of the nutrients that need to be added.
The Single Layer Aeroponic Plant Growth System is for indoor use and is comprised of up to ten ABS tubs. Each tub has an external dimension of 57” x 43.5” x 12” mounted on its corresponding aluminum T-slot framing structure. Inside each ABS sub is a PVC spray manifold with nozzles, which sprays nutrient rich fluid to the roots of the plants, which grow through the cutouts similar to the four-layer system. Plants grow in plastic net pots, which sit in each cutout. Each ABS tub in the system has a center drain, allowing liquids in each tub to drain via piping into a single reservoir. The system contains many of the same features as the four-layer system described above.
The Two Layer Aeroponic Plant Growth System is for indoor use and is comprised of similar elements of both the four layer and single layer systems. The units external dimensions are 65” x 32” x 83”. The main difference to the other two systems is the size and number of layers.
The applicable subheading for the Four Layer Vertical Aeroponic Plant Growth System, the Single Layer Aeroponic Plant Growth System and the Two Layer Aeroponic Plant Growth System will be 8424.82.0090, Harmonized Tariff Schedule of the United States (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 appliances; steam or sand blasting machines and similar jet projecting machines; parts thereof: Other appliances: Agricultural or horticultural: Other. The rate of duty will be 2.4% 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). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). 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 8424.82.0090, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8424.82.0090, 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.
Heading 9902, HTSUS, deals with a wide variety of goods which have a temporary reduction in their rate of duty by virtue of legislative action. Subheading 9902.15.68, HTSUS, provides for Self-propelled sprinklers for agricultural and horticultural purposes, other than center pivot type (provided for in subheading 8424.82.00). For classification to be proper within this provision of the Nomenclature, the specific prerequisites outlined in subheading 9902.15.68 must be met. In this instance, the Vertical Aeroponic Plant Growth Systems does not meet the requirements of subheading 9902.15.68, HTSUS, as it is not a self-propelled sprinkler. As such, the Vertical Aeroponic Plant Growth Systems are not entitled to beneficial duty treatment under HTSUS subheading 9902.15.68.
In your submission, you also request that the Four Layer Vertical Aeroponic Plant Growth System, the Single Layer Aeroponic Plant Growth System and the Two Layer Aeroponic Plant Growth System be considered for duty-free treatment as agricultural or horticultural machinery under subheading 9817.00.50, HTSUS, which provides for Machinery, equipment and implements to be used for agricultural or horticultural purposes. Subheading 9817.00.50, HTSUS, is an actual use provision. To fall within a 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, HTSUS, the subject merchandise is classifiable under the subheading 8424, HTSUS. This subheading is not excluded from classification in 9817 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". It is this office’s opinion that the subject merchandise is "equipment" which fulfills the requirement of a horticultural pursuit. Based on the information provided, the Four Layer Vertical Aeroponic Plant Growth System, the Single Layer Aeroponic Plant Growth System and the Two Layer Aeroponic Plant Growth System are 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. Please note that the additional duties imposed by headings 9903.88.01, 9903.88.02, 9903.88.03, and 9903.88.04 do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80. For headings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable heading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in heading 9802.00.80.
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 Jason Christie at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division