CLA-2-39:OT:RR:NC:N1:421
Ralph Natale
American Shipping Company, Inc.
250 Moonachie Road
Moonachie, NJ 07074
RE: The tariff classification of hoop houses from China
Dear Mr. Natale:
In your letter dated June 16, 2017, on behalf of your client, Quiedan Company, you requested a tariff classification ruling.
The products under consideration are the Model 1000 and 2000 Series Hoop Houses used to grow vegetables, fruits and flowers. These temporary steel structures, also referred to as Spanish Tunnels, Grow Tunnels, or High Tunnels, are imported in complete kits consisting primarily of various steel tubing, multi-layer polyethylene film, clamps, connectors, wiggle wire and a crank handle. Imported in roll form, the polyethylene/agricultural film measures 6 mils in thickness and is treated with infra-red (IR) and UV (ultraviolet) blocking additives that control light, heat and moisture which provides a controlled environment and helps extend growing seasons. Available in various sizes, the Model 1000 Series features a roll-up door while the Model 2000 Series offers door, venting and gutter system options.
Classification of merchandise under the Harmonized Tariff Schedule of the United States (HTSUS) is in accordance with the General Rules of Interpretation (GRIs). GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character, which may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the article.
Based on the information provided, this office finds that the hoop houses are composite goods the essential character of which is imparted by the polyethylene film. Although each of the items in the kit is necessary to construct the hoop house, it is the film which clearly plays the most significant role in achieving the structure’s intended purpose.
The applicable subheading for the Model 1000 and 2000 Series Hoop Houses will be 3920.10.0000, HTSUS, which provides for Other plates, sheets, film, foil and strip, of plastics, noncellular and not reinforced, laminated, supported or similarly combined with other materials: Of polymers of ethylene. The rate of duty will be 4.2 percent ad valorem.
Machinery, equipment and implements to be used for agricultural or horticultural purposes are provided for under the special classification provision of subheading 9817.00.5000, HTSUS. In order for the subject merchandise to fall within the special provisions of Chapter 98, HTSUS, the following three-part test must be met: (1) The article in question must not be excluded from the heading under Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2, HTSUS; (2) The terms of the headings must be met in accordance with GRI 1, HTSUS, which provides that classification is determined according to the terms of the headings and any relative section or chapter notes; and (3) The article must comply with the actual use provision requirements of sections 10.131-10.139, Customs Regulations (19 CFR 10.131-10.139).
The hoop houses are provided for under heading 3920, HTSUS. This heading is not excluded from classification in subheading 9817.00.50, HTSUS, by operation of Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2. The second part of the test requires the hoop houses to be "machinery", "equipment" or "implements" used for "agricultural or horticultural purposes". The hoop houses assist in cultivating fruits, vegetables and flowers in a controlled environment which is an agricultural pursuit. The third part of the test is that importers meet the actual use requirements of section 10.131 through 10.139, CBP Regulations [19 CFR 10.131 through 10.139]. If these requirements are satisfied, the third part of the test will be met and the subject merchandise would be classifiable under subheading 9817.00.5000, HTSUS, as agricultural or horticultural equipment, and would be free of duty.
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 April Cutuli at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division