Jan 25 CBP Bulletin Modifies Ruling on EZ Tree Bar
In the January 25, 2012 issue of the U.S. Customs and Border Protection Bulletin (Vol. 46, No. 5), CBP published a notice on its modification of a ruling and treatment regarding the tariff classification of the EZ tree bar.
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Modification Is Effective March 26
CBP is modifying one ruling on the EZ tree bar, as well as any treatment CBP previously accorded to substantially identical transactions, effective for merchandise entered or withdrawn from warehouse for consumption on or after March 26, 2012.
EZ Tree Bar
| Item: EZ Tree Bar. It is composed of two, nine-inch galvanized steel tubes. On each tube is a slit where an adjustable clamp is inserted. One tube contains holes drilled at one inch intervals and has a larger diameter than the other. The smaller tube is inserted into the larger tube and contains a push lock that will allow it to be locked into place, thus making the EZ Tree Bar adjustable. The adjustable bar is fixed to a pole on one side and to a newly planted tree on the other to hold the tree in place while it grows. |
| New ruling: HQ H188375 (dated 01/10/12) modifies NY N132377 |
| Old HTS/Rate: 7326.90.85, 2.9% (other articles of iron or steel) and eligible for duty-free treatment under 9817.00.50 (machinery, equipment and implements used for horticultural purposes)1 |
| New HTS/Rate: 7326.90.85, 2.9% (other articles of iron or steel) and ineligible for duty-free treatment under 9817.00.50 |
| Reason: CBP affirms that its primary classification of the EZ Tree Bar under heading 7326 is correct. However, CBP has held that before an article may be classified in subheading 9817.00.50 and qualify for the agricultural use duty-exemption, it must first satisfy each of the following in order: (1) the article must not be among the list of exclusions found in HTS Chapter 981, one of which includes certain articles in Chapter 73; (2) the terms of heading 9817.00.50 must be met in accordance with GRI 12; and (3) the merchandise must meet "actual use" conditions3. The EZ Tree Bar does not meet the first condition because it is classified in subheading 7326.90, a subheading among the Chapter 98 exclusions. Thus, it is ineligible for duty-free entry under 9817.00.50 and should be classified according to its primary classification in subheading 7326.90.85. |
(See ITT's Online Archives 11111813 for summary of the proposed modification of this ruling.)
1Chapter 98, Subchapter XVII, U.S. Note 2.
2Classification by application of General Rule of Interpretation (GRI) 1 is made according to the terms of the headings of the tariff schedule and any relevant Section or Chapter Notes.
3Subheading 9817.00.50 is an "actual use" provision. A tariff classification controlled by the actual use to which the imported goods are put in the U.S. is satisfied only if such use is intended at the time of importation, the goods are so used and proof therefore is furnished within three years after the goods are entered.