CLA-2-84:OT:RR:NC:N1:104

Ms. Gena Lawwill
Alliance Customs Clearance Inc.
31 Park of Commerce Way, Suite 300
Savannah, GA 31405)

RE: The tariff classification of components of a Vegetative Flower Unit (“VFU”) from China

Dear Ms. Lawwill:

In your letter dated October 18, 2018, filed on behalf of Agrinamics Inc., you requested a tariff classification ruling.

The Vegetative Flower Unit (“VFU”) is comprised of automated growth modules. It is designed to produce agricultural crops near their point of consumption. The components under consideration are (1) a fan coil unit and a supply manifold and (2) a motorized photoperiod control curtain system.

The fan coil unit is a component of a HVAC. The unit consists of a drain pan, a centrifugal fan that circulates air and a heat exchange device that cools the air received from the fan. Together, the fan and heat exchange device change the temperature and humidity level of the air.

The supply manifold is used to supply water and nutrients to the flower units.  The water-supplying manifold consists of tubing, short drip lines, drip nozzles and a shut-off valve.  In your letter, you mention that after importation, additional shut-off valves will be installed onto the supply manifold. The plastic shut-off valve included is a manually operated ball valve that controls the flow of water. 

The applicable subheading of the fan coil unit is 8415.83.0070, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Air conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated; parts thereof: Not incorporating a refrigerating unit.  The general rate of duty is 1.4 percent ad valorem.

The applicable subheading of the supply manifold is 8481.80.5090, HTSUS, which provides for Taps, cocks, valves and similar appliances, for pipes, boiler shells, tanks, vats or the like, including pressure-reducing valves and thermostatically controlled valves; parts thereof: Other appliances: Hand operated: Of other material. The general rate of duty is 3 percent ad valorem.

Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS.  The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS.  Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974).  Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.

Products of China classified under subheadings 8415.83.0070 and 8481.80.5090, HTSUS, unless specifically excluded, are subject to the additional 10 percent ad valorem rate of duty.  At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheadings 8415.83.0070 and 8481.80.5090, HTSUS, listed above.

The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Notice cited above and the applicable Chapter 99 subheading.

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.

Your inquiry does not provide enough information for us to give a classification ruling on motorized photoperiod control curtain system. Your request for a classification ruling should include clarification as to the whether the complete curtain system is under consideration or only the curtain portion. Provide a cost breakdown of the curtain system, not the entire VFU. Cost figures are needed on the curtain system components alone, e.g., what percentage of only the curtain system is represented by the roller, by the track, by the motor and by the curtain.  In addition, the submitted installation manual does not go into sufficient detail with regard to the curtain system.  Include information as to the physical location of the curtain system in the VFU. When this information is available, you may wish to consider resubmission of your request.

In your letter, you also requested the classification of a LED light. A separate response will be issued to you for the LED light, under ruling number NY N301761.

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 Patricia O’Donnell at [email protected].

Sincerely,

Steven A. Mack
Director
National Commodity Specialist Division