CLA-2-84:OT:RR:NC:N1:105
Hsissen Kaced
Aylano Farm
10 Finley Road
Bridgeton, NJ 08302
RE: The tariff classification of a Horticultural Sprayer from China
Dear Mr. Kaced:
In your letter dated January 21, 2022, you requested a tariff classification ruling. Descriptive information was provided with your request.
The item in question is described as a horticultural sprayer identified as model number FXS8/680. The tractor loaded sprayer has a 600-liter tank capacity, a diaphragm pump, 10 nozzles, a net weight of 270 kilograms, and is 150 cm x 136 cm x 136 cm. The FXS8/680 is mounted on a tractor by three hitch points and works with tractor power to operate the pump. The pump extracts the solution from the tank and disperses the fluid through the nozzles on the unit. The FXS8/680 is designed to spray pesticides and fertilizer diluted in water with a spray range of 10 meters.
In your eRuling request, you suggest the applicable subheading for the FXS8/680 horticultural sprayer is 8424.41.9000, 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: Agricultural or horticultural sprayers: Other.” We agree. The general rate of duty will be 2.4% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8424.41.9000, 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 8424.41.9000, 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.
In your submission, you also request that the FXS8/680 horticultural sprayer be considered for duty-free treatment as agricultural or horticultural implement 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). Heading 8424, HTSUS is not among the excluded headings 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 an “implement” which fulfills the requirement of a horticultural 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 FXS8/680 horticultural sprayer is 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 Jason Christie at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division