Duty free status of irrigation pipe from Canada

HQ 084704 August 17, 1989 CLA-2 CO:R:C:G 084704 TLS CATEGORY: Classification TARIFF NO.: 9817.00.5000 Mr. Thomas B. Teubner Valmont Industries, Inc. Valley, Nebraska 68064 RE: Duty free status of irrigation pipe from Canada Dear Mr. Teubner: Your letter of April 6, 1989 to our Pembina, North Dakota office requested a ruling on the classification of polyethylene irrigation pipe and whether or not it is eligible for duty free status under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). It has been referred to this office for a reply on the issue of duty free status. FACTS: The irrigation pipe is imported from Canada and is made of polyethylene. It is flexible and of medium density, designed to be mounted onto reels on irrigation equipment trailers for agricultural use. It is cut to specific lengths so that it may be readily attached to the trailers. The pipe is used to complete manufacturing of the trailers. You request that we apply duty free status to this product under HTSUSA. ISSUE: Whether the polyethylene irrigation pipe is entitled to duty free treatment under the appropriate heading of HTSUSA, and if so, which of the following subheadings apply: 1) 9817.00.6000, HTSUSA, covering parts to be used in articles provided for in headings 8432, 8433, 8434 and 8436, whether or not such parts are principally used as parts of such articles and whether or not covered by a specific provision within the meaning of additional U.S. rule of interpretation 1(c); 2) 9817.00.5000, HTSUSA, covering machinery, equipment, and implements to be used for agricultural purposes. LAW AND ANALYSIS: The New York Seaport has issued a ruling classifying this pipe under HTSUSA subheading 3917.32.0020, covering tubes, pipes and hoses, not reinforced or otherwise combined with other materials, without fittings, of polyethylene. The pipe is designed to be mounted onto reels on irrigation equipment trailers which are marketed for agricultural use. The General Rules of Interpretation (GRI) and Additional U.S. Rules of Interpretation (USRI) govern classification of products under HTSUSA. As provided for under USRI 1(b), a tariff classification controlled by the actual use to which the imported goods are put in the United States is satisfied only if such use is intended at the time of importation, the goods are so used and proof thereof is furnished within 3 years after the date the goods are entered. The importer's purchasing manager has furnished a letter certifying that the irrigation pipe is imported for resale in the agricultural market and is to used only for irrigation purposes. Subheading 9817.00.6000 provides for a product that is a part to used in articles provided for in headings 8432, 8433, 8434, and 8436. The irrigation pipe is to be used as part of an irrigation equipment trailer. The irrigation equipment trailer is not an article provided for under any of the headings listed above. The polyethylene irrigation pipe is not classifiable under subheading 9817.00.6000. Subheading 9817.00.5000 provides for a product that is either machinery, equipment, or an implement to be used for agricultural or horticultural purposes. The irrigation pipe is characterized as agricultural equipment because it is an apparatus with an intended agricultural use and is actually used in that manner. It is not used for any other purpose. The irrigation pipe is properly classifiable under subheading 9817.00.5000. HOLDING: The polyethylene irrigation pipe is properly classified under subheading 9817.00.5000, HTSUSA, as equipment to be used for agricultural purposes and is therefore entitled to duty free treatment upon compliance with 19 C.F.R. 10.138. Sincerely, John Durant, Director