CLA-2-84:OT:RR:NC:N2:206
Michelle M. Klein
MTD Consumer Group Inc.
5903 Grafton Road
Valley City, OH 44280
RE: The tariff classification of engines for chipper shredder vacuums from China
Dear Ms. Klein:
In your letter dated August 9, 2019, you requested a tariff classification ruling and application of duty-free provision in subheading 9817.00.60, Harmonized Tariff Schedule of the United States (HTSUS).
The items under consideration have been identified as Engines (Model numbers 752Z1X65CUA and 752Z1X65CUB), which are designed to be used with Walk-Behind Chipper Shredder Vacuums. Both engines are spark ignition internal combustion engines of a vertical shaft and cylinder capacity of 159 cubic centimeters (cc).
The applicable subheading for the Engines (Model numbers 752Z1X65CUA and 752Z1X65CUB ) designed to be used with Walk-Behind Chipper Shredder Vacuums will be 8407.90.1010, HTSUS, which provides for “Spark-ignition reciprocating or rotary internal combustion piston engines: Other Engines: To be installed in agricultural or horticultural machinery or equipment: not exceeding 37.3kW: Less than 4,476W.” 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 subheadings 8407.90.1010, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. If the merchandise is from China, you must report the Chapter 99 subheading, i.e., 9903.88.02 in addition to the corresponding subheading 8407.90.1010, HTSUS, listed above at the time of importation.
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.
In your submission, you also request that the engines for the Walk-Behind Chipper Shredder Vacuum be considered for duty-free treatment as parts of agricultural or horticultural machinery under subheading 9817.00.60, HTSUS, which provides for parts of machinery, equipment and implements to be used for agricultural or horticultural purposes.
Subheading 9817.00.60, HTSUS, is an actual use provision. To fall within a 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).
It appears that the Walk-Behind Chipper Shredder Vacuums, which you claim the engines will be used with, do not meet the terms of subheading 9817.00.60. Heading 9817.00.60 provides for “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).” As a result we need to establish the classification of the machinery the engines will be used with.
You state that the function of the Walk-Behind Chipper Shredder Vacuum is to roll across a lawn like a lawn mower, sucking up and shredding leaves as they go. They also feature a chipper intake, which can chip branches into mulch. You suggest to classify the vacuums in heading 8436, HTSUS, as other agricultural machinery. However, after review of its function, it is the opinion of this office that the classification of the vacuum in heading 8436, HTSUS, is precluded.
The correct subheading for the Walk-Behind Chipper Shredder Vacuum will be 8479.89.6500, HTSUS, which provides for “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter, parts thereof: Other machines and mechanical appliances: Other: Electromechanical appliances with self-contained electric motor: Other.” Since heading 8479, HTSUS, is not within the listed headings required to satisfy the terms of subheading 9817.00.60, the engines designed to be used with the vacuum will not be eligible for the duty-free treatment under subheading 9817.00.60, HTSUS.
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, please contact National Import Specialist Liana Alvarez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division