CLA-2-94:OT:RR:NC:N4:463
James White
Wellmaster Pipe and Supply Inc.
1494 Bell Mill Rd
Tillsonburg, ON N4G 4J1
Canada
RE: The tariff classification of greenhouse carts from China.
Dear Mr. White:
In your letter dated October 13, 2020, you requested a tariff classification ruling. We received product literature including diagrams and pictures.
You state that the greenhouse carts are used by greenhouses, nurseries and garden centers to cultivate, transport, and display bedding plants, perennials and hanging baskets, and that their primary use is to serve as a display case and storage rack, as described in Chapter 94 of the Harmonized Tariff Schedule of the United States (HTSUS), while their secondary use is as a vehicle, as described in Chapter 87, HTSUS.
The greenhouse carts subject of this ruling are wheeled carts made of hot-dip galvanized steel. The greenhouse carts feature four reinforced welded-wire mesh shelves (including the base), four casters (two fixed and two swivel) and a short foldable tow bar. The carts are imported from China collapsed for ease of transportation.
Item 1, greenhouse cart TC09021A, measures 22" (W) x 53" (L) x 81" (H).
Item 2, greenhouse cart M2259008DC, measures 22" (W) x 59" (L) x 81" (H).
You suggest that the subject carts be classified in subheading 9403.20.0020, HTSUS, which provides for “Other furniture and parts thereof: Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures.” We are in agreement with your analysis but note that subheading 9403.20.0020, HTSUS, does not exist and that description is a partial description corresponding to subheadings 9403.20.0075/78/81, HTSUS.
The Explanatory Notes (ENs) to the HTSUS constitute the official interpretation of the tariff at the international level. For the purposes of Chapter 94, HTSUS, the term “furniture” means: Any “moveable” articles (not included under other more specific headings of the Nomenclature), which have the essential characteristic that they are constructed for placing on the floor or ground, and which are used, mainly with a utilitarian purpose, to equip private dwellings, hotels, theatres, cinemas, offices, churches, schools, cafes, restaurants, laboratories, hospitals, dentists’ surgeries, etc., or ships, aircraft, railway coaches, motor vehicles, caravan-trailers or similar means of transport. (It should be noted that, for the purposes of this Chapter, articles are considered to be “movable” furniture even if they are designed for bolting, etc., to the floor, e.g., chairs for use on ships). Similar articles (seats, chairs, etc.,) for use in gardens, squares, promenades, etc., are also included in this category. The subject carts are within the construct of EN 9403, HTSUS.
Chapter 87 provides for various vehicles designed for the transport of goods or persons. Taking into account that transporting plants is a secondary function of the greenhouse carts and that their primary function is to serve as a display case and storage rack, classification of these products in Chapter 87, HTSUS, is precluded.
In HQ H234955, August 4, 2014, U.S. Customs and Border Protection (CBP) classified an elevated garden bed equipped with four casters for easy movement in subheading 9403.20.00, HTSUS.
The applicable subheading for greenhouse carts TC09021A and M2259008DC will be 9403.20.0081, HTSUS, which provides for “Other furniture and parts thereof: Other metal furniture: Other: Counters, lockers, racks, display cases, shelves, partitions and similar fixtures: Other.” The rate of duty will be free.
Trade Remedy
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 9403.60.8081, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, HTSUS, in addition to subheading 9403.60.8081, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
Agriculture/Horticulture
Subheading 9817.00.50, HTSUS, provides for the duty-free treatment of agricultural and horticultural articles. Subheading 9817.00.50, HTSUS, is an actual use provision. To fall within the 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. Second, the terms of the headings must be met in accordance with General Rule of Interpretation (GRI) 1, which provides that classification is determined according to the terms of the headings and any relative section or chapter notes. Third, 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).
With regard to subheadings 9817.00.50, HTSUS, the subject merchandise is classifiable under the heading 9403, HTSUS. This heading is not excluded from classification in the 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 subject merchandise to be included within the terms of the subheadings. Subheading 9817.00.50, HTSUS, as required by GRI 1, states that the subject merchandise must be “Machinery, equipment and implements to be used for agricultural or horticultural purposes.” This office is of the opinion that the subject merchandise is equipment for horticultural purposes.
In HQ H234955, August 4, 2014, CBP classified an elevated garden bed equipped with four casters for easy movement in subheading 9817.00.50, HTSUS, provided the actual use conditions and requirements of 19 CFR Sections 10.131 through and including 10.139 are met.
Based on the information provided, greenhouse carts TC09021A and M2259008DC are classifiable in subheading 9817.00.50, HTSUS, if the actual use conditions and requirements of 19 CFR Sections 10.131 through and including 10.139 are met. Please note that the additional duties imposed by subheadings 9903.88.01, 9903.88.02, 9903.88.03, and 9903.88.04, HTSUS, do not apply to goods for which entry is properly claimed under a provision of chapter 98 of the HTSUS, except for goods entered under subheadings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80, HTSUS.
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 Seth Mazze at seth.mazze.cbp.dhs.gov.
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division