CLA-2 CO:R:C:M 088741 NLP
District Director
U.S. Customs Service
111 West Huron Street
Buffalo, New York 14202
RE: Protest and Request for Further Review No. 0901-0-825-344,
dated July 14, 1989; Steel Racks
Dear District Director:
The following is our decision regarding the Protest and
Request for Further Review No.0901-9-825344, dated July 14, 1989.
At issue is the classification of steel racks.
FACTS:
The merchandise at issue are containers with steel frames
and flat bottoms that are open on three sides and at the top.
The containers have removable end frames. When the steel
containers are shipped full, they are placed in the open position
and are either strapped down on an open deck trailer or stacked
inside a van trailer. In addition, the containers have
forklift/tiedown channels and lifting lugs to facilitate
loading/unloading by forklift in factory-to-factory and in-
factory movement.
Upon importation the steel containers were classified in
subheading 7326.90.90, HTSUSA, which provides for other articles
of steel, other, other.
The Protestant argues that the steel containers are properly
classifiable in subheading 8609.00.00, HTSUSA, which provides for
containers (including containers for the transport of fluids)
specially designed and equipped for carriage by one or more modes
of transport. Protestant states that these containers are
specially designed for repetitive use in door-to-door transport
of goods by truck or rail. These shipping containers are of
substantial construction and are fitted with loops and guides to
facilitate handling and securing on the transporting vehicle.
ISSUE:
Are the steel racks containers specially designed and
equipped as required for classification in Heading 8609, HTSUSA.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRIs) set forth the
manner in which merchandise is to be classified under the HTSUSA.
GRI 1 requires that classification be determined according to the
terms of the headings of the tariff and any relative section or
chapter notes and, unless otherwise required, according to the
remaining GRI's, taken in order.
Heading 8609, HTSUSA, provides for containers specially
designed and equipped for carriage by one or more modes of
transport. The Explanatory Notes provide the official
interpretation of the HTSUSA at the international level. The
Explanatory Notes to Heading 8609, HTSUSA, provide the following:
These containers are packing receptacles specially
designed and equipped for carriage by one or more modes of
transport (e.g., road, rail, water or air). They are
equipped with fittings (hooks, rings, castors, supports,
etc.) to facilitate handling and securing on the
transporting vehicle, aircraft or vessel. They are thus
suitable for the "door-to-door" transport of goods without
intermediate repacking and, being of robust construction,
are intended to be used repeatedly.
The more usual type, which may be of wood or metal,
consists of a large box equipped with doors, or with
removable sides.
In addition, the ENs state that Heading 8609, HTSUSA,
excludes cases, crates, etc., which though designed for the door-
to-door transport of goods are not specially constructed as
described above to be secured to the transporting vehicle,
aircraft or vessel (Emphasis added); these are classified
according to their constituent material.
While tariff provisions carrying a free rate are often given
a broad and liberal construction so as to carry out the apparent
intent of Congress, the class or kind of merchandise covered by
those provisions may not be expanded, under the guise of such a
liberal construction, beyond the plain meaning of the terms used.
The ENs above indicate that the type of container to be
included under this heading "consists of a larger box equipped
with doors or with removable sides." The instant merchandise is
not of this type, since it is simply a metal pallet with vertical
metal posts attached at the four corners. This type of container
is used primarily to move material around inside a plant or
warehouse.
In addition, the design of the forklift/tiedown channels and
lifting lugs on these containers makes then compatible for use
with forklifts and small factory-type work trucks. That the
channels and lugs may also serve as a means of chaining the
containers to the trucks or rail cars does not make the instant
containers specially constructed. Therefore, the subject
containers are not specially designed for the transporting
vehicles but for facilitating loading/unloading or in-factory
movement.
HOLDING:
The steel racks are classifiable in subheading 7326.90.90,
HTSUSA, which provides for other articles of iron and steel,
other, other. The rate of duty is 5.7 percent ad valorem.
The protest should be denied in full. A copy of this
decision should be attached to the Form 19 Notice of Action to be
sent to the Protestant.
Sincerely,
John Durant, Director
Commercial Rulings Division