CLA-2-84:OT:RR:NC:N1:105
Ms. Angela Herrera
Russell A. Farrow (US) Inc.
131 SW 156th Street
Suite 200
Seattle, WA 98166
RE: The tariff classification of five machines used in a Fishmeal Plant from China.
Dear Ms. Herrera:
In your letter dated March 18, 2019, on behalf of Aleutian Proteins, Inc., you requested a tariff classification ruling on five machines from China, which are used in a Fishmeal Plant.
The complete Fishmeal Plant processes fish offal into fishmeal, which will be used as aqua feed and as feed for domestic animals, to include dog and cat food. The plant includes the five machines that are installed on separate foundations and connected by conveyors, piping and ducting. The five machines are described as follows:
The Stord Disc Dryer consists of a steam inlet, a drive motor and a rotating shaft with discs that are heated. The dryer uses steam to dry the press cake received from the screw press.
The Stord Tube Preheater is configured as a large shell and tube heat exchange device. The stainless steel preheater uses the heat received from the Stord Disc Dryer exhaust to heat the fish offal prior to being cooked.
The Stord Disc Cooker consists of an outer shell and an inner rotating rotor with discs. The steam-heated cooker uses heat to cook the fish offal to a temperature of 90 degrees Celsius. The heating process allows for the proteins of the fish offal to coagulate and the fat cells to break open. The discs facilitate the transfer of heat and allow the offal material to move through the cooker.
The Stord Waste Heat Evaporator is described as a two-stage falling film evaporator that uses heat to separate stickwater into three fractions: sludge, stickwater, and oil. Upon receiving vapors from the Stord Tube Preheater, the evaporator heats stickwater still within stainless steel tubing. The stickwater evaporates and the remaining fractions plunge through the tubing. The vapor produced from the first stage of the evaporation process is then used to evaporate the stickwater in the second phase and the remaining fractions continue to fall down the tubing. Pumps transfer the stickwater still used in both stages of the evaporator.
The Stord Twin-Screw Press is used to dewater and create a presscake out of the fish offal. The fish offal is fed into a chute at the end of the press, where it reaches the pressing device. The pressing device consists of two slowly rotating screws, a press cage and strainer housing. The wet material, i.e. the fish offal, fills the free space between the screws and press cage. The screws are slowly rotated and the fish offal is conveyed into a closely fitted strainer housing while simultaneously submitted to steady increasing pressure. The liquid is then drained off through the perforated strainer plates and a dewatered presscake is created.
The applicable subheading for the Stord Disc Dryer will be 8419.32.5000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change of temperature such as heating …, other than machinery or plant of a kind used for domestic purposes …: Dryers: Other. The general rate of duty will be Free.
The applicable subheading for the Stord Tube Preheater will be 8419.50.5000, HTSUS, which provides for machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change of temperature such as heating …, other than machinery or plant of a kind used for domestic purposes: Heat Exchange Units: Other. The rate of duty will be Free.
The applicable subheading for the Stord Disc Cooker will be 8419.89.9585, HTSUS, which provides for machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change of temperature such as heating …, other than machinery or plant of a kind used for domestic purposes …: Other machinery, plant or equipment: Other: Other: Other: For other materials. The general rate of duty will be 4.2 ad valorem.
The applicable subheading for the Stord Waste Heat Evaporator will be 8419.40.0080, HTSUS, which provides for machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment of materials by a process involving a change of temperature such as heating …, other than machinery or plant of a kind used for domestic purposes: Distilling or rectifying plant: Other. The rate of duty will be Free.
The applicable subheading for the Stord Twin-Screw Press will be 8421.29.0065, HTSUS, which provides for Centrifuges, including centrifugal dryers; filtering or purifying machinery and apparatus, for liquids or gases; parts thereof: Filtering or purifying machinery and apparatus for liquids: Other: Other: Other: Other. The general rate of duty will be free.
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 subheading 8419.89.9585, HTSUS, unless specifically excluded, are subject to the 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 8419.89.9585 HTSUS, listed above.
Products of China classified under subheadings 8421.29.0065, 8419.50.5000, 8419.32.5000 and 8419.40.0080, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.01, in addition to subheadings 8421.29.0065, 8419.50.5000, 8419.32.5000 8419.40.0080, 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.
Heading 9902, HTSUS, deals with a wide variety of goods which have a temporary reduction in their rate of duty by virtue of legislative action. Subheading 9902.15.67, HTSUS, provides for shell and tube oil coolers designed for compression-ignition engines, such coolers measuring 50 cm or more but not over 180 cm in length, 10 cm or more but not over 70 cm in width and 15 cm or more but not over 70 cm in height (provided for in subheading 8419.89.95). For classification to be proper within this provision of the Nomenclature, the specific prerequisites outlined in subheading 9902.15.67 must be met.
In this instance, the Stord Disc Cooker does not meet the requirements of subheading 9902.15.67, HTSUS, as it is not designed for compression-ignition engines and is otherwise configured. As such, the Stord Disc Cooker is not entitled to beneficial duty treatment under HTSUS subheading 9902.15.67.
In your submission, you propose that the subject Stord Twin-Screw Press, Stord Disc Dryer, Stord Tube Preheater, Stord Disc Cooker and the Stord Waste Heat Evaporator be considered for duty-free treatment as agricultural or horticultural machinery under subheading 9817.00.50, HTSUS, which provides for Machinery, equipment and implements to be used for agricultural or horticultural purposes and whether or not covered by a special provision within the meaning of additional U.S. rule of interpretation 1(c). Subheading 9817.00.50, HTSUS, is an actual use provision. To fall within this special classification, a three-part test must 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).
The merchandise is classifiable under subheadings 8421.29.0065, 8419.32.5000, 8419.50.5000, 8419.40.0080 and 8419.89.9585, HTSUS. These subheadings are not excluded from classification in either 9817 subheading by operation of Section XXII, chapter 98, Subchapter XVII, U.S. Note 2, HTSUS. The second part of the test calls for the unit to be "machinery”, “equipment" or "implements" used for "agricultural or horticultural purposes". The subject Stord Twin-Screw Press, Stord Disc Dryer, Stord Tube Preheater, Stord Disc Cooker and the Stord Waste Heat Evaporator is "machinery" that will be used to process fish offal into fishmeal. The fishmeal will used as feed for aquatic animals or aquaculture and as feed for domestic animals, to include dog and cat food. HQ ruling 950674 defines the term “Aquaculture” as the art of cultivating the natural products of water and the raising or fattening of fish in enclosed ponds. Based on this definition, the ruling concluded that aquaculture pursuits are different from agriculture pursuits. Therefore, while the subject articles are machines, the machines are used for aquaculture purposes and used to feed domestic animals. Thus, it is our opinion that the Stord Twin-Screw Press, Stord Disc Dryer, Stord Tube Preheater, Stord Disc Cooker and the Stord Waste Heat Evaporator do not qualify for treatment under subheading 9817.00.50, HTS.
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 Anthony E. Grossi at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division