Request for binding ruling on the classification of the Terra NutriTech OPIS Controller

HQ H304961 January 27, 2020 CLA-2 OT:RR:CTF:EMAIN HQ H304961 TPB CATEGORY: Classification TARIFF NO.: 8479.89.9499 Ms. M.K. Hennessy Terra Water Systems Ltd. Moone Lodge, Moone Athy Co Kildare N/A R14 YV25 Ireland Re: Request for binding ruling on the classification of the Terra NutriTech OPIS Controller Dear Ms. Hennessey, This is in response to your July 9, 2019 eRuling request, on behalf of Terra Water Systems Ltd. (“Importer”), for a binding ruling letter on the classification of the Terra NutriTech OPIS Controller, under the Harmonized Tariff System of the United States (“HTSUS”). Your submission states that the country of origin of the product is Ireland. In reaching our conclusions, consideration was given to additional information provided to U.S. Customs and Border Protection (“CBP”) by the importer. FACTS: The article at issue is an electrically controlled liquid dosing system incorporating on-farm hardware, software and an “app” (application). The controller measures the flow of water to livestock on the farm and injects the appropriate level of supplements to the water system accurately on a continuous basis. Supplements are stored in bulk containers connected to the system by suction pipes. The hardware is plumbed into the farm’s water supply using proprietary fittings and has the option of up to three different water systems for supplementation. The OPIS Controller ensures accurate supplementation of livestock on an ongoing basis. The Controller can be adjusted via an integrated touchscreen or remotely by use of the app. The importer is of the view that the product at issue is classifiable under heading 84.79, HTSUS. ISSUE: What is the classification of the Terra NutriTech OPIS Controller? LAW AND ANALYSIS: Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs).  GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes.  In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.  The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The HTSUS provisions under consideration are as follows: 8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof * * * 9032 Automatic regulating or controlling instruments and apparatus; parts and accessories thereof * * * Classification in Chapter 90. Section XVI of the HTSUS, which incorporates Chapters 84 and 85, excludes articles of Chapter 90. See Section XVI, Note 1 (m). As such, we must first determine whether the product at issue is classified in Chapter 90 of the HTSUS. Heading 90.32 provides for automatic regulating or controlling instruments and apparatus; parts and accessories thereof. At the heart of this provision, according to the Explanatory Notes to heading 90.32 and Note 7 (a) and 7 (b) to Chapter 90, are apparatus that: (a) Instruments and apparatus for automatically controlling the flow, level, pressure or other variables of liquids or gases, or for automatically controlling temperature, whether or not their operation depends on an electrical phenomenon which varies according to the factor to be automatically controlled, which are designed to bring this factor to, and maintain it at, a desired value, stabilized against disturbances, by constantly or periodically measuring its actual value; and (b) Automatic regulators of electrical quantities, and instruments or apparatus for automatically controlling non-electrical quantities, the operation of which depends on an electrical phenomenon varying according to the factor to be controlled, which are designed to bring this factor to, and maintain it at, a desired value, stabilized against disturbances, by constantly or periodically measuring its actual value. The apparatus of heading 90.32 contain a device for measuring the variable, a control device and a starting and stopping device. In this instance, the Terra NutriTech OPIS Controller is not utilizing this type of operation. The flow of water is allowed to pass freely through the system and is not regulated in any way. There is a flow meter, which reads the amount of water, but it does not increase or decrease the flow, it merely reads the amount. Once the water amount is read by the flow meter, the controller will determine how much supplement to add to the fresh water. The machine is performing a much more detailed analysis of the underlying factors and then providing very specific amounts of supplement to add to the system. This amount will change with the amount of flow. There is not a specific amount of supplement that will be provided at different time intervals. Finally, the machine is not turning on or off based on a set of parameters. It is performing a more sophisticated function of controlling the amounts of supplement to add to the water based on complex algorithms built into the software. As such, the product at issue does not satisfy the characteristics of the goods of heading 90.32 and is not precluded from classification in Section XVI. Classification in Chapter 84. As noted above, the Terra NutriTech OPIS Controller operates as a dosing system for livestock principally used to move water into the manifold where supplements are added and dilution occurs by fluid dynamics, upon which the treated water is dispensed through a connected pipe. The dosing system is electronically controlled by a software application via a touch screen or an app. Heading 84.79 provides for machines and mechanical appliances having individual functions, not specified or included elsewhere in this Chapter. In this case, the dosing system is not more specifically classified elsewhere. The Explanatory Note to heading 84.79 states that goods of that heading are restricted to machinery having individual functions which is not excluded from Chapter 84 by the operation of a Section or Chapter Note. Since no other heading covers the instant controller and because it possesses an individual function as explained above, it is classified under heading 84.79, HTSUS. HOLDING: For the foregoing reasons, by application of GRIs 1 and 6, the Terra NutriTech OPIS Controller is classified in heading 84.79, subheading 8479.89.9499, HTSUS, which provides for “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Other: Other: Other”. The Column 1 rate of duty will be 2.5 percent ad valorem. Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current. Sincerely, Gregory Connor, Chief Electronics, Machinery, Automotive, and International Nomenclature Branch