The tariff classification of poultry migration fencing from China

 N311844 June 9, 2020 CLA-2-73:OT:RR:NC:N1:116 CATEGORY: Classification TARIFF NO.: 7308.90.9590; 9817.0050; 9903.88.02 Ms. Luanne Ciaccio Pride International, Inc. 2200 Broening Hwy #230 Baltimore, MD 21224 RE: The tariff classification of poultry migration fencing from China Dear Ms. Ciaccio: In your letter dated May 15, 2020, you requested a binding ruling for classification for poultry migration fencing for your client, Zeiset Equipment. The fencing is described as being manufactured from nonalloy steel wire that is welded and coated with epoxy prior to importation. The fencing is installed every 100 – 200 feet and prevents the chickens from overcrowding at the end of the poultry barn. The wire design helps to ensure there is sufficient air flow at the chickens’ height. The fencing contains a short bend to provide rigidity to the fence and is held in place by a stand that is manufactured in the United States (U.S.) and not part of this request. The applicable subheading for the fencing will be 7308.90.9590, Harmonized Tariff Schedule of the United States (HTSUS), which provides for structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge sections, lock gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns) of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel: other: other: other: other: other. The rate of duty will be free. Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7308.90.9590, 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., 9903.88.02, in addition to subheading 7308.90.9590, 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. You have also requested a determination on the eligibility for duty-free treatment 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 that requires all conditions of a three-part test to 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). As the subject merchandise is classifiable under heading 7308, HTSUS, and this heading is not excluded from classification in 9817 by operation of Section XXII, chapter 98, Subchapter XVII, U.S. Note 2, HTSUS, the first part of the three-part test 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 the opinion of this office that the subject merchandise is an “implement,” which fulfills the requirement of an agricultural pursuit, therefore the second part of the three-part test is met. The fencing is used for agricultural or horticultural purposes, therefore the third part of the three-part test, the actual use test, is met. Based on the information provided, the fencing is classifiable in subheading 9817.00.50, HTSUS. 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 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 Angelia Amerson at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division