The tariff classification of plastic crates from Japan

N321307 September 14, 2021 CLA-2-39:OT:RR:NC:N1:137 CATEGORY: Classification TARIFF NO.: 3923.10.9000 Jay Reynolds JP Reynolds Company, Inc. 101 SE 21st Street Fort Lauderdale, Florida 33316 RE: The tariff classification of plastic crates from Japan Dear Mr. Reynolds: In your letter dated dated August 30, 2021 you requested a tariff classification ruling on behalf of your client IFCO Systems US, Inc. The products under review are referred to as Black Lift Lock & I series crates imported under model numbers 6408, 6411, 6413, 6416 & 6419. All of the model numbers are constructed of plastic. They measure 23.6 inches in length and 15.7 inches in width. You indicate that the only variation between the modal numbers are heights that range from 4.1 inches to 8.3 inches. The plastic crates are being imported for the packing and transportation of fresh fruit and produce from farm to retail distribution facilities. You indicate that after importation, IFCO intends to lease these goods to end users. The applicable subheading for the plastic crates will be 3923.10.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for articles for the conveyance and packing of goods, of plastics: boxes, cases, crates and similar articles: other. The general rate of duty will be 3 percent ad valorem. In your request, you stated that you believe this article should be classified under subheading 9817.00.50, HTSUS. In pertinent part, “before an article can be classified in either of these headings the following three-part test must be applied: 1) The articles must not be among the long list of exclusions to heading 9817.00.50 or 9817.00.60 under Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2; 2) The terms of heading 9817.00.50 or 9817.00.60 must be met in accordance with GRI 1; and 3) The merchandise must meet the actual use conditions required in accordance with sections 10.131-10.139 of the Customs Regulations (19 CFR §§10.131-10.139). A good must satisfy each part of the test. If a good fails any part of the test, then it is treated according to its primary classification.” The first part of the test is to determine whether the crates are excluded from heading 9817, HTSUS. They are classifiable in heading 3923, HTSUS. There is no exclusion within this heading for articles of heading 3923, therefore the first part of the test is satisfied. The second part of the test calls for the crates to be included within the terms of subheading 9817.00.50, HTSUS, as required by GRI 1. They must be "machinery", "equipment" or "implements" used for "agricultural or horticultural purposes". For this part of the test, the initial determination to be made is what agricultural or horticultural pursuit is in question. It is the importer's position that the crates are used for the packing and transportation of fresh fruit and produce from farm to retail distribution facilities. As commonly defined, agriculture and horticulture are concerned with the science, art and business of cultivating crops, fruits, plants and the like. Packing and transporting the product is not commonly held to be an agricultural or horticultural pursuit. The crates do not satisfy the second part of the test, therefore, classification in 9817.00.50, HTSUS is precluded. 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. 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 Christina Allen at [email protected]. Sincerely, Steven A. Mack Director National Commodity Specialist Division