CBP Issues Revised ICP on Agricultural "Actual Use" Provisions
U.S. Customs and Border Protection has issued a revised version of its informed compliance publication entitled, What Every Member of the Trade Community Should Know About: The Agricultural Actual Use Provisions.
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The ICP was prepared by the National Commodity Specialist Division of Regulations and Rulings and provides guidance regarding the classification of certain items classified in HTS subheadings 9817.00.50 and 9817.00.60. The ICP was first published in 1998, revised in March 2004, reviewed with no changes in May 2005 and March 2006, and has now been revised in February 2008.
Guidance on Classification Under Agricultural "Actual Use" Provisions
This ICP provides classification guidance for the duty-free provisions of HTS subheadings 9817.00.50 and 9817.00.60, which may be applied to any article that meets the terms of either of these subheadings.
According to CBP, HTS 9817.00.50 is for machinery, equipment and implements to be used for agricultural or horticultural purposes; and HTS 9817.00.60 is for parts to be used in articles provided for in headings 8432, 8433, 8434 and 8436, whether or not such parts are principally used as parts of such articles and whether or not covered by a special provision within the meaning of additional U.S. rule of interpretation 1(c).
Generally, these are articles which are used for agricultural purposes but which are not classified under a duty-free agricultural provision. Among the key terms in these two special provisions is the phrase "to be used." This phrase makes these two headings "actual use" provisions. As such, an article must satisfy the statutory requirements set forth in Additional U.S. Rule of Interpretation 1(b).
Highlights of the Revisions to ICP onAgricultural Actual Use Provisions
The revised ICP contains the following information: The Three Part Test, Part 1 - Exclusions, Part II - Heading Text, Important Terms, Part 3 - Actual Use Certification, Pertinent CBP Regulations, C.S.D. 83-32 - HQ Letter 069623, etc.
Based on a comparison of the March 2006 version and the revised February 2008 version of the ICP, the following changes in Parts I-III were noted (partial list):
Part I. The revised ICP makes certain revisions to the list of tariff numbers that are excluded from consideration under HTS subheadings 9817.00.50 or 9817.00.60.
Part II. Part II of the revised ICP was the most edited and reorganized section including, among other changes, the addition of subtitles and new text on "parts" and "functional units," multiple additional references to court cases, deleted and reworked text, additional text on Congress not intending that all items used as a part of agricultural or horticultural equipment should receive duty free treatment, etc.
Part III. Part III of the ICP received several revisions including the addition and deletion of text.
ICP Provided for Informational Purposes Only
CBP states that the information provided in this publication is for general information purposes only. CBP cautions that because many complicated factors can be involved in customs issues, an importer may wish to obtain a ruling under CBP Regulations, 19 CFR Part 177, or obtain advice from an expert (such as a licensed Customs Broker, attorney or consultant) who specializes in customs matters.
(See ITT's Online Archives or 03/27/06 news, 06032725, for BP summary of the March 2006 version of this ICP.)
ICP on agricultural actual use provisions (revised February 2008) available at http://www.cbp.gov/linkhandler/cgov/toolbox/legal/informed_compliance_pubs/act_use_prov.ctt/act_use_prov.pdf