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HQ 088358


March 1, 1991

CLA-2 CO:R:C:M 088358 JMH

CATEGORY: CLASSIFICATION

TARIFF NO.: 7315.12.00, 9817.00.50

Mr. Jim Barbeau
A.N. Deringer, Inc.
P.O. Box 824
Fort Covington, NY 12937-0824

RE: Modification of New York Ruling Letter 830398, dated October 19, 1988; barn cleaner replacement chain; agricultural machinery, equipment and implements; Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2(ij); Headquarters Ruling Letter 086211, dated March 24, 1990; Headquarters Ruling Letter 087076, dated June 14, 1990

Dear Mr. Barbeau:

This office has been asked to review the classification of certain barn cleaner replacement chains which were the subject of New York Ruling Letter 830398 ("NY 830398"), dated October 19, 1988.

FACTS:

The articles in question are various types of barn cleaner replacement chains. The chains were described in NY 830398 as follows:

The first type incorporates flat links which alternate with paddles. The paddles are 2 inches x 2 inches x 1/4 angle iron. The pitch is 4 1/2 inches, and there are five parts per pitch. The second type of barn cleaner chain, "hook and eye", consists of alternating links and paddles which are linked together in a hook and eye arrangement. There is only one part per pitch.

NY 830398 classified the barn cleaner chains in subheading 7315.12.00, Harmonized Tariff Schedule of the United States Annotated ("HTSUSA"), as "Chain and parts thereof, of iron or steel...Articulated link chain and parts thereof...Other chain..." Additionally, NY 830398 stated that provided Customs Regulations 10.131-10.139, 19 C.F.R. 10.131-10.139 were met, the
chain was eligible for classification under subheading 9817.00.50, HTSUSA. Subheading 9817.00.50 grants duty free status to certain agricultural equipment, apparatus and machinery.

ISSUE:

Whether the barn cleaner chain is entitled to classification under heading 9817.00.50, as agricultural machinery, equipment and implements.

LAW AND ANALYSIS:

The classification of merchandise under the HTSUSA is governed by the General Rules of Interpretation ("GRIs)". GRI 1, HTSUSA, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes..." The heading in question, heading 9817.00.50, states the following:

9817.00.50 Machinery, equipment and implements to be used for agricultural or horticultural purposes...

Headquarters Ruling Letter 086211 ("HQ 086211"), dated March 24, 1990, and Headquarters Ruling Letter 087076 ("HQ 087076"), dated June 14, 1990, promulgated a three-part test for the determination of when an item is "machinery, equipment, and implements" under heading 9817.00.50. The three steps which must be met are:

(1) The article in question must not be excluded from the heading under Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2, HTSUSA.

(2) The article to be classified must be the article that performs the agricultural or horticultural pursuit in question. If the article only performs a portion of that pursuit, it is a part, not machinery, equipment or an implement within the heading.

(3) The article must have the actual use certification required under 10 C.F.R. 10.138.

The barn cleaner chains are classified within subheading 7315.12.00. Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2(ij), HTSUSA, excludes articles of chapter 73 from classification within heading 9817.00.50. Subheading 7315.12.00 is within chapter 73. Therefore, the barn cleaner chains cannot
be classified in heading 9817.00.50. The chains are not entitled to duty free entry. Since the barn cleaner chains fail the first part of the test, there is no need to examine the other two steps.

HOLDING:

This ruling affirms that the barn cleaner chains, one of the subjects of NY 830398, are classified within subheading 7315.12.00. However, NY 830398 was incorrect to classify the barn cleaner chains in heading 9817.00.50. Section XXII, Chapter 98, Subchapter XVII, U.S. Note 2(ij), HTSUSA, excludes articles of chapter 73 from classification within heading 9817.00.50. Subheading 7315.12.00 is within chapter 73, therefore, the chains are excluded from 9817.00.50. The chains are not entitled to duty free entry.

In order to insure uniformity in Customs classification of this merchandise and to eliminate uncertainty we are modifying NY 830398. This modification is effective with the date of this letter. After your review of this letter should you disagree with the decision's legal basis, you are invited to submit any arguments you might have with respect to this matter for our review. Any arguments you wish to submit should be received within 30 days of the date of this letter.

This notice should be considered a modification of NY 830398 in accordance with Customs Regulation 177.9(d)(1), 19 C.F.R. 177.9(d)(1). This decision is not to be retroactively applied to NY 830398, and therefore, this ruling will not affect past transactions for the importation of your client's merchandise entered under NY 830398. See Customs Regulation 177.9(d)(2), 19 C.F.R. 177.9(d)(2). Furthermore, NY 830398 will not be valid precedent for the purposes of future transactions in merchandise of this type.

We recognize that future transactions may be adversely affected by this modification since current contracts for importation arriving at United States ports subsequent to this ruling will not be classified pursuant to NY 830398. If such a situation should arise your client may, at their discretion, notify this office and apply for relief from the binding effects of this decision as may be warranted by the circumstances.

Sincerely,

John Durant, Director
Commercial Rulings Division

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