CLA-2 OT:RR:NC:N1:102
Amy J. Johannesen
Johannesen Associates, PC
325 Hudson Street, 4th Floor
New York, NY 10013
RE: The classification of a submersible pump from China
Dear Ms. Johannesen:
In your letter dated July 21, 2022, on behalf of Mondi Products Ltd., you requested a ruling on the classification of a submersible pump. Descriptive information and a sample were provided. The sample will be returned.
The product under consideration is identified as a utility and sump pump, model number 1585X. The centrifugal submersible pump is powered by an electric motor and is designed to displace or transfer water from a flooded area. The multi-functional pump primarily consists of a casing, a discharge outlet, an intake grill, a base, an impeller, Viton seals, a grounded cord and is imported packaged with two multi-sized fittings: one for industrial-sized hoses and one for garden hoses.
The applicable subheading for the utility and sump pump, model number 1585X, will be 8413.70.2004, HTSUS, which provides for Pumps for liquids, whether or not fitted with a measuring device; liquid elevators; part thereof: Other centrifugal pumps: Other: Submersible pumps. The general rate of duty is Free.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8413.70.2004, 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., 9903.88.01, in addition to subheading 8413.70.2004, HTSUS, listed above.
In your submission, you also request that the pump 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 regard to the first test of subheading 9817.00.50, HTSUS, the subject merchandise is classifiable under heading 8413, HTSUS. This heading 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 pump to be included within the terms of the subheading. Subheading 9817.00.50, HTSUS, as required by GRI 1, which states the article must be “machinery”, “equipment” or “implements” used for “agricultural or horticultural purposes.” Based on the information provided, the subject article does not qualify for subheading 9817.00.50, as the article is a multi-functional pump that displaces or transfers water. The actual process of displacing or transferring water is not an agricultural or horticultural pursuit and the usage of the displaced or transferred water can vary. Therefore, the utility and sump pump, model number 1585X, does not meet the second part of the test and classification within subheading 9817.00.50, HTSUS, is precluded.
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.
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. Part 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 Sandra Martinez at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division