CBP Rules That Lawnmower Tires Are Duty-Free Parts of Agriculture Equipment

Rubber tires specifically designed for use with lawnmowers are parts of agricultural equipment under subheading 9817.00.60, eligible for duty-free treatment, CBP said in a ruling issued April 28 and made public July 8. The ruling was a response to a request for internal advice initiated by OTR Wheel Engineering on low-speed rated tires that are designed, engineered and marketed for use on riding and standing mowers.

The Automotive and Aerospace Center of Excellence and Expertise had said the tires should be classified in subheading 4011.90.8010. OTR agreed that the tires are classifiable there, but said the duty-free secondary subheading for parts of agricultural equipment also applied. Subheading 9817.00.60 applies to 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.

According to CBP HQ, though U.S. Note 2, Subchapter XVII, Chapter 98 specifically excludes articles provided for in headings 8432, 8433 and 8434 from subheading 9817.00.60, CBP's 2017 ruling HQ H264768 found the exclusion Note 2(t) refers only to “articles” and not “parts” of articles provided for in 8433. The tires are indisputably parts of lawn mowers and not complete lawn mowers, CBP said.

Additional U.S. Rule of Interpretation 1(c) says that "a provision for parts of an article covers products solely or principally used as a part of such articles... ." However, subheading 9817.00.60 specifically applies to parts "whether or not those parts are covered by a specific provision under additional U.S. rule of interpretation 1(c)."

CBP said that the Center already agreed that the tires were "parts" classified under subheading 4011.90.8010 rather than complete lawn mowers, so the tires do not fall within the exclusions listed in Section XXII. They meet the requirements for classification in subheading 9817.00.60, as long as actual use requirements are met, it said.

A tariff classification controlled by the actual use of the goods is satisfied only if the use is intended at the time of importation, the goods are actually used and proof is furnished within 3 years after the entry date, CBP said. The tires already meet the intended use standard but must also meet the actual end-use conditions and OTR must provide proof of actual use within three years.

Actual use certification proceeds on a case-by-case basis. Because OTR sells to distributors rather than to end-users, OTR provided an actual use certificate to cover the subject merchandise. However, because OTR does not sell directly to end-users, CBP HQ ruled that the Automotive and Aerospace Center of Excellence and Expertise may consider whether the actual use certificate satisfies the requirements of 19 CFR 10.138 or whether OTR must provide proof within three years.