The classification and applicability of 9817.00.50 to stall shovels from China

N311121 April 23, 2020 CLA-2-98:OT:RR:NC:N4:422 CATEGORY: Classification TARIFF NO.: 3924.90.5650; 9903.88.15; 9817.00.50 Mr. David Forgue Barnes, Richardson and Colburn, LLP 303 E. Wacker Drive Chicago, IL 60601 RE: The classification and applicability of 9817.00.50 to stall shovels from China Dear Mr. Forgue: In your letter, dated April 7, 2020, you requested a determination as to the applicability of subheading 9817.00.50, Harmonized Tariff Schedule of the United States (HTSUS), on shovels on behalf of your client, Tractor Supply Co. Product information and photos were submitted for our review. In order to determine the applicability of the special classification provision, we must first arrive at a regular tariff classification for the shovels. The product at issue in this request is described as a “stall shovel.” This shovel has a heavy-duty plastic head with a hardwood handle and D grip. The stall shovel is 49.75 inches in length. The scoop is 14.5 inches wide, rust-proof and designed to accumulate and contain material for scooping and removal. You further state that stall shovels are used to remove animal waste and to spread pine shavings or similar absorbent materials in the bottom of livestock housing. You propose that the stall shovels with a plastic scoop are properly classifiable under HTSUS 3924.90.5650 as other household articles of plastic and cite past rulings regarding various types of plastic shovels, including N026861 (May 28, 2008) (classifying plastic garden shovels) and N126955 (October 28, 2010) (classifying plastic snow shovels). We agree with the proposed tariff classification. The rate of duty will be 3.4 percent ad valorem. 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. You request that the stall shovel be considered for duty-free treatment as an 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 a 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). In regard to subheading 9817.00.50, HTSUS, the subject merchandise is classifiable under the subheading 3924, HTSUS. This subheading is not excluded from classification in 9817 by operation of Section XXII, chapter 98, Subchapter XVII, U.S. Note 2, HTSUS. 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 the opinion of this office that the subject merchandise is an “implement,” which fulfills the requirement of an agricultural pursuit. Based on the information provided, the stall shovel is classifiable in subheading 9817.00.50, HTSUS, if the actual use conditions and requirements of Sections 10.131 through and including 10.139, Customs Regulations, are met. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3924.90.5650, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, 9903.88.15, in addition to subheading, 3924.90.5650 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. 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 Charlene Miller at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division