CLA-2-73:OT:RR:NC:N1:130
Mr. John Patrick Castle
Craft Brew Alliance
929 N. Russell St.
Portland, OR 97277
RE: The tariff classification of fermentation and beer storage tanks from China
Dear Mr. Castle:
In your letter, dated April 15, 2019, you requested a tariff classification ruling. Product information and diagrams were submitted for our review.
The products under consideration are steel tanks designed for the fermentation and chilling of beer. The fermentation tanks range from 5,900 liters to 23,500 liters in volume. They have double walls and are insulated with mineral-wool insulation. The cooling tanks range from 5,900 liters to 12,000 liters and are similarly constructed. Both are imported with support legs. Neither has mechanical nor electrical components.
In your letter, you suggest that both varieties of tanks are classifiable in heading 8438, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Machinery, not specified or included elsewhere in this chapter, for the industrial preparation or manufacture of food or drink, other than machinery for the extraction or preparation of animal or fixed vegetable fats or oils; parts thereof: Brewing machinery. We disagree. The Explanatory Notes to the Harmonized System (ENs) for heading 8438, HTSUS - namely exclusion (a) in section (VI), “Brewery Machinery” - specifically exclude such equipment from heading 8438: “The heading excludes: (a) Fermenting vats without mechanical or cooling equipment; these are classified according to the constituent materials.”
.
The above exclusion specifically describes the instant merchandise. Furthermore, the ENs to heading 7309, HTSUS, specifically include such merchandise:
These containers are normally installed as fixtures for storage or manufacturing use, e.g., in factories, chemical works, dye works, gasworks, breweries, distilleries and refineries, and to a smaller extent in houses, shops, etc….containers which have simply been fitted with taps, valves, level gauges, safety valves, manometers, etc., remain in this heading….The heading also includes containers insulated by means of double walls or double bottoms subject to there being no provision for circulating heating or cooling fluids between the walls…This heading includes fermentation vats for liquids (wine, beer, etc.)
The tanks, therefore, are squarely provided for in heading 7309, HTSUS.
The applicable subheading for the fermentation and chilling tanks will be 7309.00.0030, HTSUS, which provides for Reservoirs, tanks, vats and similar containers for any material (other than compressed or liquefied gas), of iron or steel, of a capacity exceeding 300 liters, whether or not lined or heat insulated, but not fitted with mechanical or thermal equipment: Tanks. The 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 7309.00.0030, 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 subheading 7309.00.0030, HTSUS, listed above.
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 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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division