January 24, 2007 CBP Bulletin Notice on Certain Greenhouse Film
In the January 24, 2007 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 41, No. 5), CBP published a notice proposing to modify one classification ruling as follows:
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Proposed modification of ruling; proposed revocation of treatment. CBP is proposing to modify one ruling on the classification of certain greenhouse film. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
CBP states that any party who has received a contrary written ruling or decision on the merchandise that is subject to the proposed ruling revocation, or any party involved with a substantially identical transaction, should advise CBP by February 23, 2007, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.
In addition, CBP states that this notice covers any rulings on the subject merchandise that may exist but have not been specifically identified.
Certain greenhouse film. The merchandise is described as greenhouse film made of ethylene butyl acrylate (EBA). The film is imported in rolls or in standard size lengths of 100 feet and 150 feet. The greenhouse film typically contains three layers of extruded plastic with special additives used in certain of the layers to impart specific properties such as UV-stabilization, thermicity barrier, infrared fillers, anti-drip additives and energy-saving pigments. The specific properties of the film prevent it from being commercially interchangeable with film used to wrap foods or with other films, such as construction film. Further, the film is exclusively used as greenhouse roofs and greenhouse walls for retractable greenhouse systems.
CBP is proposing to issue HQ W968283 in order to modify NY H89973, and reclassify the subject merchandise under 8436.99.00 (duty-free) as "other agricultural, horticultural, etc.machinery, parts: other" rather than under 3920.10.0000 (4.2%) as "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."
According to CBP, the proposed modification would correct the classification of the greenhouse film; the classification of the other item described in NY H89973 would remain unchanged.
CBP states it has changed its view as Ludvig Svensson v. United States (CIT, 1999), which was recently brought to its attention, found that similar goods - specialized plastic laminated screens imported in rolls several hundred feet long and used as greenhouse roofs - were "parts" of agricultural machinery.
(In considering whether the goods were "parts", CBP states that the Ludvig court applied a two-part test: first, whether the imported good was an integral, constituent, or component part, without which the article to which it is to be joined, could not function as such an article: and second, whether the imported good was dedicated solely for use with the article in question.)
proposed: 8436.99.00, duty-free ; current: 3920.10.00, 4.2%
January 24, 2007, CBP Bulletin (Vol. 41, No. 5) available at http://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2007/