CLA-2-40:OT:RR:NC:N1:137
David G. Forgue
Barnes, Richardson & Colburn LLP
303 East Wacker Dr.
Chicago, IL 60601
RE: The tariff classification of a vulcanized rubber sheet from China
Dear Mr. Forgue:
In your letter dated May 6, 2020, you requested a tariff classification ruling, on behalf of your client North West Rubber Ltd.
The subject product is a vulcanized rubber sheet. The sheet is manufactured in thicknesses between 1/8 inch and ¼ inch. One side of the sheet has an embossed finish meant to mimic the look of leather. The sheet is shipped in rolls, of either 75 or 150 ft. lengths. It is sold in a variety of widths with 48 inches being the most common. You state that the primary purchasers of the rubber sheet are horse trailer manufacturers who cut the sheet to length and install pieces on the insides of horse trailers. Adhesive will be applied at the time of installation to allow the rubber to adhere to the walls of the trailers. You also note that the horse trailer liner helps protect horses from metal trailer sides, while also protecting the metal trailer from impact from the horses.
The applicable subheading for the vulcanized rubber sheet will be 4008.21.0000, HTSUS, which provides for Plates, sheets, strip, rods and profile shapes, of vulcanized rubber other than hard rubber: Of noncellular rubber: Plates, sheets and strip: Other. The general rate of duty will be Free.
In your request, you stated that you believe this article should be classified under subheading 9817.00.5000, Harmonized Tariff Schedule of the United States (HTSUS). In pertinent part, “before an article can be classified in either of these headings the following three-part test must be applied:
1) The articles must not be among the long list of exclusions to heading 9817.00.50 or 9817.00.60 under Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2;
2) The terms of heading 9817.00.50 or 9817.00.60 must be met in accordance with GRI 1; and
3) The merchandise must meet the actual use conditions required in accordance with sections 10.131-10.139 of the Customs Regulations (19 CFR §§10.131-10.139).
A good must satisfy each part of the test. If a good fails any part of the test, then it is treated according to its primary classification.”
The first part of the test is to determine whether the rubber sheet is excluded from heading 9817, HTSUS. The roll is classifiable in heading 4008, HTSUS. There is no exclusion within this heading for articles of chapter 40, therefore the first part of the test is satisfied.
The second part of the test calls for the rubber sheet to be included within the terms of subheading 9817.00.50, HTSUS, as required by GRI 1. The rubber sheet must be "machinery", "equipment" or "implements" used for "agricultural or horticultural purposes".
For this part of the test, the initial determination to be made is what agricultural or horticultural pursuit is in question. It is the importer's position that the rubber sheet assists in the transport of horses in its use as a wall liner. However, this product is merely a sheet of rubber with an embossed surface to resemble leather. This product could have a myriad of uses that are not agricultural in nature. We find that the rubber sheet as imported does not have the requisite attributes of an agricultural implement. Therefore, classification in 9817.00.50, HTSUS, is precluded.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 4008.21.0000, HTSUS, unless specifically excluded, are subject to an additional 25 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 4008.21.0000, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 Christina Allen at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division