CLA-2 CO:R:C:T 950216 CC 864092

Hank Beesley
Hank Beesley & Associates Inc.
5201-L Indian Trail Ind. Pkwy.
Norcross, GA 30071

RE: Reconsideration of NYRL 864092; conveyor belting fabric; 9817.00.60

Dear Mr. Beesley:

This letter is in response to your request for reconsideration of New York Ruling Letter (NYRL) 864092, dated June 14, 1991, concerning the tariff classification of conveyor belting fabric. Samples were submitted for examination.

FACTS:

The merchandise at issue consists of two types of material: a plastic mylar strip (generally a polyethylene terephthalate polyester) and a woven fabric made of 100 percent polypropylene man-made fibers. These materials will be imported in widths varying from 3-3/4 inches to 12 inches on rolls varying from 600 feet to 1060 feet in length. You state that in their imported condition the rolls are not cut to specific sizes. After importation the material will be cut to size and joined to itself or to other lengths for installation on the conveyor system of various poultry-keeping machines.

In New York Ruling Letter (NYRL) 864092, dated June 14, 1991, the textile fabric, if under 30 centimeters in width, was classified under subheading 5806.32.2000 of the Harmonized Tariff Schedule of the United States Annotated (HTSUSA). The textile fabric, if over 30 centimeters in width, was classified under subheading 5407.73.2060, HTSUSA. The plastic strip was classified under subheading 3920.62.0000, HTSUSA. We also ruled that the merchandise at issue was not classifiable under subheading 9817.00.60, HTSUSA, which grants duty free treatment for certain parts of machines used in agricultural pursuits.

You have not contested the classification of this merchandise, but state that it was subject to duty free treatment under 870.45 of the Tariff Schedules of the United States (TSUS). We presume, therefore, that you contest the finding of NYRL 864092 that this merchandise is not eligible for duty free treatment under subheading 9817.00.60, HTSUSA.

ISSUE:

Whether the subject merchandise is eligible for duty free treatment under subheading 9817.00.60, HTSUSA?

LAW AND ANALYSIS:

Subheading 9817.00.60, HTSUSA, applies to 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).

We have ruled that in order for an article to be eligible for duty free treatment as parts of machines used in agricultural pursuits under subheading 9817.00.60, the following three part test must be met: (1) the articles must not be among the long list of exclusions to heading 9817.00.60, HTSUSA, under Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2, HTSUSA; (2) the terms of heading 9817.00.60, must be met in accordance with GRI 1; and (3) the merchandise must meet the actual use conditions required under Customs Regulations 10.133, 10 C.F.R. 133. (Headquarters Ruling Letter (HRL) 087849 of May 22, 1991.)

Among the list of exclusions in Note 2 to Subchapter XVII, Chapter 98, is articles of textile material (Note 2(e)). The woven textile fabric is therefore excluded from consideration under subheading 9817.00.60.

Although the plastic material would not be excluded from consideration under subheading 9817.00.60 by Note 2 to Subchapter XVII, Chapter 98, this material must meet the terms of subheading 9817.00.60 to be eligible for duty free treatment. Subheading 9817.00.60 provides for "parts." We ruled in HRL 087849 that uncut rolls of belting fabric are not considered parts. Consequently the plastic, which is entered in uncut rolls, does not meet the terms of subheading 9817.00.60.

You contend that since the merchandise at issue was eligible for duty free treatment under the TSUS, it should be eligible for duty free treatment under the HTSUSA. The HTSUSA replaced the TSUS as our statutory tariff schedule on January 1, 1989, pursuant to the enactment of the Omnibus Trade and Competitiveness Act of 1988, 1204(c), 19 U.S.C.A. 3004 (c) (West Supp. 1989). Although implementation of the HTSUSA was intended to be, to the extent practicable, duty and quota neutral, some changes were unavoidable when converting from our previously national TSUS to the HTSUSA. The language of 9817.00.60, HTSUSA, is different from that of 870.45, TSUS. Although the merchandise at issue may have been subject to duty free treatment under the TSUS, it does not meet the terms of 9817.00.60, HTSUSA, for eligibility for duty free treatment.

HOLDING:

The merchandise at issue is not eligible for duty free treatment under subheading 9817.00.60, HTSUSA. NYRL 864092, dated June 14, 1991, is affirmed.


Sincerely,

John Durant, Director
Commercial Rulings Division