CLA-2-84:OT:RR:NC:N1:104
Mr. Amos Amir
HomeBioGas LTD
P.O. Box 1672
Beit Yanai
Israel 40293
RE: The tariff classification and status under the United States-Israel Free Trade Agreement (IFTA), of a HomeBioGas Anaerobic Digester from Israel.
Dear Mr. Amir:
In your letter dated August 3, 2015 you requested a ruling on the classification, the country of origin and the status under the IFTA of a HomeBioGas Anaerobic Digester from Israel.
The HomeBiogas Anaerobic Digester, Model Number TG1B1, is a stand-alone, outdoor family- sized disposal unit that recycles organic waste. The model is a do-it-yourself biogas system that converts food waste and animal manure into a clean energy biogas which can be used as an energy source for cooking gas, lighting and heating water. It also provides liquid natural fertilizer that can be used to fertilize the home garden.
Organic matter is fed into the digester tank which will be filled with water during use. The anaerobic bacteria in the water biodegrade the matter and digest it. During this fermentation process, biogas and liquid natural fertilizer is produced. The model includes a filter to remove any unpleasant odors and toxic gases. Food waste and animal manure are fed into the dual purpose sink. The grinding mechanism with stainless steel teeth is attached to the external, manual grinder handle. While grinding the waste, the user pours water into the grinder. A mixing pole, located on the right hand side of the sink, is an upright plastic pole with a 90 degree handle which the user manually raises up and down in order to mix the slurry in order to remove remaining leftovers. The model comes equipped with a solar cover.
The HomeBioGas Anaerobic Digester is said to have been produced in Israel from components which all originated in Israel. The Home BioGas Anaerobic Digester is imported unassembled in two cartons. It is complete in one shipment. Based on the information you have provided, the country of origin of the subject merchandise is Israel.
In accordance with General Rule of Interpretation 2(a), the applicable tariff provision for the HomeBioGas Anaerobic Digester, Model Number TG1B1, will be 8479.89.9899, Harmonized Tariff Schedule of the United States (HTSUS). 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: Other: Other”. The general rate of duty will be 2.5% ad valorem.
General Note 8(b), HTSUS, sets forth the criteria for determining whether goods are eligible for treatment as “products of Israel” under the IFTA. General Note 8(b), HTSUS, (19 U.S.C. § 1202) states, in pertinent part, that
For purposes of this note, goods imported into the customs territory of the United States are eligible for treatment as “products of Israel” only if--
(i) each article is the growth, product or manufacture of Israel or is a new or different article of commerce that has been grown, produced or manufactured in Israel;
(ii) each article is imported directly from Israel (or directly from the West Bank, the Gaza Strip or a qualifying industrial zone as defined in general note 3(a)(v)(G) to the tariff schedule) into the customs territory of the United States; and
(iii) the sum of--
(A) the cost or value of the materials produced in Israel, and including the cost or value of materials produced in the West Bank, the Gaza Strip or a qualifying industrial zone pursuant to general note 3(a)(v) to the tariff schedule, plus
(B) the direct costs of processing operations performed in Israel, and including the direct costs of processing operations performed in the West Bank, the Gaza Strip or a qualifying industrial zone pursuant to general note 3(a)(v) to the tariff schedule, is not less than 35 percent of the appraised value of each article at the time it is entered.
If the cost or value of materials produced in the customs territory of the United States is included with respect to an article to which this note applies, an amount not to exceed 15 percent of the appraised value of the article at the time it is entered that is attributable to such United States cost or value may be applied toward determining the percentage referred to in subdivision (b)(iii) of this note.
Based on the facts provided, the goods will meet the requirements of HTSUS General Note 8(b)(i) and (ii). The goods may be eligible for the “special” duty rate if, upon importation, information is provided to indicate that the goods meet the requirements of HTSUS General Note 8(b)(iii).
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 http://www.usitc.gov/tata/hts/.
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 Patricia O’Donnell at [email protected].
Sincerely,
Gwenn Klein Kirschner
Director
National Commodity Specialist Division