CLA-2-84:OT:RR:NC:N1:105
Meredith DeMent
Sidley Austin LLP
1501 K Street, NW
Washington, District of Columbia 20005
RE: The tariff classification of the Semios Multi-Sensor Agricultural Smart Device from China
Dear Ms. DeMent:
In your letter dated February 4, 2020, on behalf of your client, SemiosBIO Technologies, Inc., you requested a tariff classification ruling.
The merchandise under consideration is described as the Semios Multi-Sensor Agricultural Smart Device. The device consists of a plastic housing, two printed circuit board assemblies (PCBAs) containing sensors, an antenna, and an actuation mechanism. The sensors allow the dispenser to collect environmental data such as temperature, humidity levels and barometric pressure. The data is transmitted via the antenna over a wireless network to a Semios database where scientists analyze the data and determine the best timetable for pest control. The dispenser sprays a Semios proprietary pheromone-based formula that disrupts the mating patterns of agricultural pests. The actuation mechanism within the dispenser consists of a small motor that activates the aerosol canisters (sold separately) containing the pheromone-based formula by pushing down on the spray nozzle. The dispensers automatically spray according to a timed schedule.
We have found that the product described above is substantially similar to the devices described in HQ W968211 (dated February 6, 2007) and HQ W968210 (dated February 6, 2007). In these rulings CBP classified automated aerosol dispensers, including the complete plastic housing, gears and control boards, imported without the aerosol spray cans (which performed the actual spraying) as parts of spraying appliances in subheading 8424.90.9080, Harmonized Tariff Schedule of the United States (HTSUS), pursuant to General Rules of Interpretation (GRI) 1 and Note 2(b) to Section XVI, HTSUS. Although the Semios Multi-Sensor Agricultural Smart Device has the capability to send data elements that include temperature, humidity and barometric pressure, we find that the primary function of the device is the ability to spray the pheromone-based formula.
The applicable subheading for the Semios Multi-Sensor Agricultural Smart Device will be 8424.90.9080, HTSUS, which provides for “Mechanical appliances (whether or not hand operated) for projecting, dispersing or spraying liquids or powders; fire extinguishers, whether or not charged; spray guns and similar appliances; steam or sand blasting machines and similar jet projecting machines; parts thereof: Parts: Other: Other.” The general rate of duty will be free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8424.90.9080, 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, in addition to subheading 8424.90.9080, 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.
In your submission, you also request that the Semios Multi-Sensor Agricultural Smart Device be considered for duty-free treatment as agricultural or horticultural machinery under subheading 9817.00.50, HTSUS, which provides for Machinery, equipment and implements to be used for agricultural or horticultural purposes.
Subheading 9817.00.50, 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).
In regards to subheadings 9817.00.50, HTSUS, the subject merchandise is classifiable under the subheading 8424, HTSUS. This subheading is not excluded from classification in 9817 by operation of Section XXII, chapter 98, Subchapter XVII, U.S. Note 2, HTSUS. The second part of the test calls for the unit to be included within the terms of the subheadings. Subheading 9817.00.50, HTSUS, as required by GRI 1, states the unit must be “machinery”, “equipment” or “implements” used for “agricultural or horticultural purposes”. It is this office’s opinion that the subject merchandise is “equipment” which fulfills the requirement of a horticultural pursuit. Based on the information provided, the Semios Multi-Sensor Agricultural Smart Device is classifiable in subheading 9817.00.50, HTSUS, if the actual use conditions and requirements of Sections 10.131 through and including 10.139, Customs Regulations, are met. Please note that the additional duties imposed by headings 9903.88.01, 9903.88.02, 9903.88.03, and 9903.88.04 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 headings 9802.00.40, 9802.00.50, 9802.00.60, and 9802.00.80. For headings 9802.00.40, 9802.00.50, and 9802.00.60, the additional duties apply to the value of repairs, alterations, or processing performed abroad, as described in the applicable heading. For heading 9802.00.80, the additional duties apply to the value of the article less the cost or value of such products of the United States, as described in 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 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 Jason Christie at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division