Duty-free exemption in the USA for importing agricultural machinery, accessories, and parts intended for the American market
Customs exemption for agricultural machinery under HTSUS positions 9817.00.50 and 9817.00.60
The United States offers a duty-free exemption for the importation of machinery and parts intended for agricultural use, if they are correctly classified under positions HTSUS 9817.00.50 and 9817.00.60 To take advantage of this benefit, the agricultural machinery, parts, and accessories must be intended for agricultural or horticultural use, not listed on exclusion lists, and meet specific criteria, including the requirement to provide proof of actual use within three years following the importation date.
Main criteria for duty-free exemption when importing agricultural machinery to America
Intended use: The machine, equipment, or parts must be intended for agricultural/horticultural use at the time of importation to America.
Exclusion list: The machine must not be on the list of agricultural machinery excluded from this customs exemption.
Proof of use: The American importer must demonstrate that the machinery has been effectively used for agricultural/horticultural purposes within three years of importation to the United States.
Certification for agricultural machinery parts and accessories: For agricultural machinery parts, a certification of use is required from the importer and/or manufacturer, typically after use in the assembly or production of a category of agricultural machinery that can benefit from the U.S. duty-free exemption
Document archiving: It is necessary to keep documentation supporting proof of use for the period required by CBP regulations
How the U.S. duty-free exemption process works
Classification: Products are classified under HTSUS positions 9817.00.50 (machinery, tools, equipment) and 9817.00.60 (parts).
Customs exemption: If the product meets the criteria, the importation to the United States is done without paying customs duties.
Types of agricultural machinery eligible for U.S. duty-free exemption
Other machinery for agriculture, horticulture, forestry, poultry-keeping, or beekeeping, including equipment for germination with mechanical or thermal devices; incubators and brooders for poultry; related parts.
Presses, crushers, and similar machinery, used in the production of wine, cider, fruit juices, or similar beverages; related parts.
Milking machines and dairy industry machinery; related parts.
Harvesting or threshing machinery, including straw or fodder balers;
Grass or hay mowers;
Machines for cleaning, sorting, or grading eggs, fruit, or other agricultural produce, excluding machines of position 8437; related parts.
Agricultural, horticultural, or forestry machinery for soil preparation or cultivation;
Lawn or sports-ground rollers; related parts.
What happens if the criteria set by U.S. customs standards for duty-free import exemption are not met
If the importer fails to provide proof of actual use in the agricultural or horticultural field within the three-year period, the importation will be reviewed by U.S. customs and may be subject to the normal customs duty applicable to U.S. importation at the time of the initial importation.
Additionally, agricultural machinery, equipment, accessories, and parts for general use, such as domestic gardening equipment, generally do not qualify for the exemption because the customs regulation on agricultural machinery is interpreted restrictively and limited to commercial agricultural or horticultural activities.
Documentation to present at the time of importation to America to obtain the duty-free exemption
At the time of importation, it is necessary to include a declaration on company letterhead supported by the standard documentation normally used for customs clearance.
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