The tariff classification of steel V-trellises from China

N316306 December 23, 2020 CLA-2-73:OT:RR:NC:N1:116 CATEGORY: Classification TARIFF NO.: 7308.90.9590; 9903.88.02; 9817.00.50 Mr. Michael Roll Roll & Harris, LLP 1999 Avenue of the Stars Los Angeles, CA 90067 RE: The tariff classification of steel V-trellises from China Dear Mr. Roll: In your letter dated December 6, 2020, you requested a tariff classification ruling on behalf of your client, Wilson Irrigation & Vinyard Supply. The products to be imported are described as steel V-trellises that are designed to support high yields from high density orchards. Each trellis is comprised of one or more of the following components: steel ribbed back end post, left orchard stake, right orchard stake, orchard stake (V-braces), and/or orchard stake (Row-braces) and will be imported in an unassembled condition. The steel ribbed back end post is either circular in profile, a modified U-shaped profile, or in the form of another profile. It may be imported with a spade plate welded or bolted on for additional stability in the soil. The left and right orchard stakes are tall posts that form one arm of a V-trellis system. The orchard stakes (V-braces and row-braces) are steel braces that are bolted horizontally to the left and right orchard stake arms. Each shipment contains the precise number of each component to manufacture a specific number of complete trellises. The applicable subheading for the unassembled steel V-trellises 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. 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. 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 V-trellises are 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 V-trellises are classifiable in subheading 9817.00.50, HTSUS. 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