Nov 16 CBP Bulletin Proposes Ruling Action on EZ Tree Bar
In the November 16, 2011 issue of the U.S. Customs and Border Protection Bulletin (Vol. 45, No. 47), CBP published a notice that proposes to modify a ruling and similar treatment regarding the tariff classification of the EZ tree bar.
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Comments on Proposed Modification Due December 16
CBP states that any party who has received a ruling or decision on the merchandise that is subject to the proposed modification, or any party involved with a substantially identical transaction, should advise CBP by December 16, 2011, 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 agents for importations subsequent to the effective date of the final decision in this notice.
Proposed Modification
CBP is proposing to modify the ruling below, and any rulings on these products that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
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. |
| Current: 7326.90.85, 2.9% (other articles of iron or steel) and eligible for 9817.00.50, free (machinery, equipment and implements used for horticultural purposes)1 |
| Proposed: 7326.90.85, 2.9% (other articles of iron or steel) |
| 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. |
| Proposed for modification: NY N132377 (2010) |
| Proposed new ruling: HQ H188375 |
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 relative Section or Chapter Notes.
3Subheading 9817.00.50 is an "actual use" provision subject to the certification process found in Sections 10.131-10.139 of the Customs Regulations. The merchandise must satisfy a horticultural pursuit, subject to certification, to be classified in this subheading.