CLA-2-84:OT:RR:NC:N1:118
Christopher Read
Valent U.S.A. LLC
4600 Norris Canyon Rd
San Ramon, CA 94583
RE: The tariff classification of an almond dehulling machine and an almond shelling machine from China
Dear Mr. Read:
In your letter dated September 28, 2021, you requested a tariff classification ruling and the applicability of subheading 9817.00.60, Harmonized Tariff Schedule of the United States (HTSUS). Descriptive information and pictures were provided with your request.
The two items under consideration are described as an almond dehulling machine (model Sr-450A). and an almond shelling machine (model Sr-TKJ400). You have stated that after almonds are removed from trees, they consist of an outer hull, shell and kernel. These almonds are then manually loaded into the dehulling machine via a hopper incorporated on the machine. The dehulling machine is electrically operated, weighs 200 kg and has dimensions of 1.1 m x 1.05 m x 0.9 m. The machine removes the hulls from the almonds, with a capacity of 800-1000 kg/h. Once the hulls are removed, the remains of the almonds (i.e., the shells and kernels) are removed from the dehuller and manually loaded into the shelling machine’s hopper. The shelling machining is electrically operated, weighs 300 kg and has dimensions of 1900 mm x 800 mm x 1200 mm. The shelling machine cracks the almond shells and separates them from the kernels. It has a capacity of 300-400 kg/h.
The applicable subheading for the almond dehulling machine (model Sr-450A) and the almond shelling machine (model Sr-TKJ400) will be 8438.60.0000, HTSUS, which provides for machinery for the preparation of fruits, nuts or vegetables. The general rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8438.60.0000, 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., 9903.88.01, in addition to subheading 8438.60.0000, 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, including information on exclusions and their effective dates, 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.
In your submission, you also request that the almond dehulling machine and almond shelling machine 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 this 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).
Subheading 8438.60.0000, HTSUS is not among the excluded subheadings described in Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2. Thus, the first part is met. 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 “machinery” which fulfills the requirement of an agricultural pursuit.
The three conditions set forth in 19 C.F.R. § 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 almond dehulling machine and almond shelling machine are classifiable in subheading 9817.00.50, HTSUS, if the actual use requirements of Sections 10.131 through 10.139 of the 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 Anthony E. Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division