CLA-2-63:RR:NC:TA:352 B84170
Ms. Barbara Klausman
James J. Boyle & Co.
7505 N.E. Ambassador Place, #B
Portland, Oregon 97220
RE: The tariff classification of capillary watering system from
Australia.
Dear Ms. Klausman:
In your letter dated March 10, 1997, on behalf of your
client Commodity Storage, you requested a tariff classification
ruling.
The "Bottoms Up" capillary watering system is described as a
watering system for commercial nurseries. It consists of a mat
consisting of three distinct layers to which a plastic tubing
system will be attached by means of an adhesive. The mat
consists of a lower layer of plastic sheeting, a center layer of
non-woven fabric and an upper layer of woven fabric made from
textile olefin strip. The mat has been assembled by use of an
adhesive along the edge of the mat. The center nonwoven layer
absorbs and distributes water supplied through holes in the
plastic tubing. The water in the layer is used to supply
moisture to the plants placed on the top of the mat. The plastic
sheet which forms the lower impermeable layer of the mat
functions to prevent the water from dissipating from the system.
The woven upper layer allows water to pass through it and reach
the root systems of the plants placed on the mat. In addition,
this upper layer prevents the nonwoven center layer from being
damaged by either root invasion from the plants or wear from
mechanical forces.
Your correspondence indicates that the additional components
of the system such as additional piping attaching the system to
the water supply and timing devices that turn the water on and
off will be provided in the United States after the system is
imported. In addition, you have requested a classification
ruling on the three layer mat if imported without the plastic
tubing attached to the mat.
Both the watering system with the tubing attached and the
mat without the tubing are composite goods composed of plastic
and textile components. Since the plastic components and the textile components in both the products play significant roles in
the functioning of these products, it is not possible to
determine the material that imparts the essential character to
these products. Consequently, in accordance with General Rule of
Interpretation 3(c), if the essential character of a composite
good cannot be determined, it shall be classified under the
heading which occurs last in numerical order among those which
equally merit consideration. Since the competing provisions for
both these products are either in heading 3926, HTS or heading
6307, HTS, pursuant to GRI 3(c) they are classifiable in heading
6307, HTS.
The applicable subheading for both the capillary watering
system with the attached plastic piping and the three layer mat
will be 6307.90.9989, Harmonized Tariff Schedule of the United
States (HTS), which provides for other made up articles... other,
other, other, other, other. The rate of duty will be 7 percent
ad valorem.
You have also requested a ruling on whether the United
States origin tubing qualifies as a U.S. fabricated component for
purposes of subheading 9802.00.8060, HTS. Subheading 9802.00.80,
HTS, provides a partial duty exemption for articles assembled
abroad in whole or in part of fabricated components, the product
of the United States, which were exported in condition ready for
assembly without further fabrication, have not lost their
physical identity in such articles by change in form, shape or
otherwise, and have not been advanced in value or improved in
condition abroad except by being assembled and except by
operations incidental to the assembly process such as cleaning,
lubrication, and painting.
All three requirements of subheading 9802.00.80, HTS, must
be satisfied before a component may receive a duty allowance. An
article entered under this tariff provision is subject to duty
upon the full value of the imported assembled article, less the
cost or value of such U.S. components, upon compliance with the
documentary requirements of section 10.24, Customs Regulations
(19 CFR 10.24).
Section 10.14 (a), Customs Regulations [19 CFR 10.14 (a)],
states that the components must be in condition ready for
assembly without further fabrication at the time of their
exportation from the United States to qualify for the exemption.
You have not described the operations which will be performed on
the tubing. Components will not lose their entitlement to the
exemption by being subjected to operations incidental to the
assembly either before, during, or after their assembly with
other components. Section 10.16 (a) Customs Regulations [19 CFR
10.16 (a)] provides that the assembly operation performed abroad
may consist of any method used to join or fit together solid components, such as welding, soldering, riveting, force fitting,
gluing, laminating, sewing, or the use of fasteners. Operations
incidental to the assembly are not considered further fabrication
operations if they are of a minor nature.
Incorporating the tubing into the watering mat is an
acceptable assembly operation for purposes of reduced duty
treatment in heading 9802. Cutting the tubing to length is
considered an operation incidental to the assembly process.
Therefore, if the tubing is merely cut to length and assembled
into the mat, the watering system may enter under subheading
9802.00.80, HTS, with allowances in duty for the cost or value of
the U.S. produced tubing, upon compliance with the documentary
requirements of 19 CFR 10.24. However, in the opinion of this
office, perforating the tubing throughout its length so that the
water may drip through is not an operation incidental to the
assembly process and would disqualify the tubing for treatment in
heading 9802.
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 Alan
Tytelman at 212-466-5896.
Sincerely,
Paul K. Schwartz
Chief, Textile and Apparel Branch
National Commodity
Specialist Division