CLA-2-39:OT:RR:NC:N4:415
Amy J. Johannesen
Johannesen Associates, PC
325 Hudson Street, 4th Floor
New York, NY 10013
RE: The tariff classification of a propagation tray and cover from China.
Dear Ms. Johannesen:
In your letter dated July 21, 2022, you requested a tariff classification ruling on behalf of your client, Mondi Products, Ltd.
Samples were submitted and will be retained as requested.
There are two products under consideration with this request. The first is described as a plastic plant propagation tray, model number 1020, SKU number G150. It is designed so that seedling roots are protected from sunlight, water is prevented from pooling to avoid root rot, and stability is provided for plant propagation media. The tray measures 11 inches by 22 inches by 2.5 inches. The second item is a clear plastic “mini greenhouse” plant cover, SKU number 100, which is designed to fit onto the plant propagation tray. The cover is designed to protect seedlings from drafts, to reduce moisture loss, and to maximize light penetration for young plants. It also features vents to control air flow.
We agree that the propagation tray and plant cover would be considered articles of plastic and as they are not more specifically provided for elsewhere, the applicable subheading will be 3926.90.9985, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “[o]ther articles of plastics and articles of other materials of headings 3901 to 3914: [o]ther: [o]ther: [o]ther.” The column one, general rate of duty is 5.3 percent ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 3926.90.9985, HTSUS, unless specifically excluded, are subject to an additional 7.5 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.15, in addition to subheading 3926.90.9985, 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, including information on exclusions and their effective dates, 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.
The plastic propagation tray and plant cover may be eligible for duty free treatment under subheading 9817.00.5000, HTSUS, which provides for “[m]achinery, equipment and implements to be used for agricultural or horticultural purposes.”
To fall within this special classification a three-part test must be met. First, the articles must not be among the list of exclusions to heading 9817, HTSUS, under Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2, HTSUS. Secondly, 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. Thirdly, the merchandise must meet the conditions required under 19 CFR 10.133.
The first part of the test is to determine whether these articles are excluded from heading 9817, HTSUS. The tray and cover are classifiable in heading 3926, HTSUS. The only exclusion is subheading 3926.90.30, which provides in part, for parts of yachts or pleasure boats. As this subheading would not apply, the first part of the test is satisfied.
The second part of the test calls for the propagation tray and plant cover to be included within the terms of the heading as required by GRI 1. This article must be “machinery,” “equipment,” or “implements” used for “agricultural or horticultural purposes.” As they are intended for use in the cultivating of plants, this product can be deemed useful for agricultural or horticultural purposes and in this office’s opinion would qualify as horticultural implements. Therefore, the requirements for the second part of the test are satisfied.
The third part of the test is that the requirements of 19 CFR 10.131 through 10.139 be met. If these actual use requirements are satisfied, the third part of the test will be met.
Based on the information provided, the subject merchandise is classifiable in subheading 9817.00.5000, HTSUS, if the actual use conditions and requirements of 19 CFR Sections 10.131 through and including 10.139 are met. Please note, the additional duties imposed by heading 9903.88.15 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, and 9802.00.60, and heading 9802.00.80.
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 at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 CFR 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 Kristopher Burton at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division