HQ 954859
NOVEMBER 4 1993
CLA-2:CO:R:C:M 954859 JAS
Ms. Dorothy Smith
Panalpina Inc.
300 Bull St., Suite 770
Savannah, GA 31401
RE: Aluminum Aircraft Pallets; Articles of Aluminum, Heading
7616; Pallets with Lock-Down Flanges and Edge Rails for
Securing to Airplane Cargo Decks; Containers Specially
Designed for Carriage by One or Modes of Transport, Heading
8609.00.00; Section XV, Note 1(g), NY 872558
Dear Ms. Smith:
Your letter of July 28, 1993, to the Area Director of
Customs, New York Seaport, on behalf of Equipment International
Corp., has been referred to this office for reply. The inquiry
concerns the tariff classification of air cargo pallets
designated the SH 850 FF, MI 860 E2 and NF (notch free) series,
from Germany.
FACTS:
The pallets in issue are said to be specialized for
transporting air cargo. They typically measure 88in. x 108in.,
88in. x 125in. and 96in. x 125in. The pallets are of flat
aluminum plate or sheet construction with extruded aluminum edge
rails around the perimeter. Also referred to as unit load
devices (ULD), these pallets have flanges at the corners that are
designed to fit into tracks or grooves on the floors of aircraft
cargo areas to permit lock-down during the transport of freight
and mail. The load is covered by a contoured net and secured to
the pallet by nylon corner tie-down ropes and metal hooks. When
moving outdoors to and from the plane, a waterproof top is often
used. Based on unit design, the International Air Transport
Association (IATA) accords these pallets cubic centimeter ratings
in terms of maximum practically usable volume.
Based on NY 872558, dated April 1, 1992, to a different
importer on similar merchandise, the local import specialist - 2 -
informally advised you that the pallets would be classifiable in
subheading 7616.90.00, Harmonized Tariff Schedule of the United
States (HTSUS), as other articles of aluminum. You contend that
the containers are specially designed and equipped for carriage
by one or more modes of transport, of the type provided for in
heading 8609.00.00, HTSUS.
The provisions under consideration are as follows:
7616.90.00 Other articles of aluminum: Other: Other
...5.7 percent
* * * *
8609.00.00 Containers (including containers for the
transport of fluids) specially designed
and equipped for carriage by one or more
modes of transport...Free
ISSUE:
Whether the aluminum aircraft pallets are containers of
heading 8609.00.00; whether they are specially designed and
equipped for purposes of that heading.
LAW AND ANALYSIS:
Merchandise is classifiable under the Harmonized Tariff
Schedule of the United States (HTSUS) in accordance with the
General Rules of Interpretation (GRIs). GRI 1 states in part
that for legal purposes, classification shall be determined
according to the terms of the headings and any relative section
or chapter notes, and provided the headings or notes do not
require otherwise, according to GRIs 2 through 6.
Articles of Section XVII are precluded from classification
in Section XV. Section XV, Note 1(g), HTSUS. Therefore, if the
pallets in issue are goods of heading 8609.00.00 or of any other
provision in Section XVII, they cannot be classified in heading
7616.
The Harmonized Commodity Description And Coding System
Explanatory Notes (ENs) constitute the Customs Cooperation
Council's official interpretation of the Harmonized System.
While not legally binding on the contracting parties, and
therefore not dispositive, the ENs provide a commentary on the
scope of each heading of the Harmonized System and are thus
useful in ascertaining the classification of merchandise under
the System. Customs believes the notes should always be
consulted. See T.D. 89-80. - 3 -
Relevant ENs at pp. 1421 and 2, state that the containers of
heading 86.09 are packing receptacles specially designed and
equipped for carriage by one or more modes of transport (e.g.,
road, water or air). They are equipped with fittings 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
notes continue by stating the more usual types may be of wood or
metal, and consist of a large box equipped with doors, or with
removable sides. Containers of heading 86.09 usually vary in
size from 4 to 145 m3 capacity. Certain types may be smaller,
but their capacity is not normally less than 1 m3. The ENs
exclude from heading 86.09 articles that may be designed for
"door-to-door" transport of goods but are not specially
constructed as described. These are classified according to
their constituent material.
The term container is not defined either in the text of the
HTSUS or in the ENs. However, in common meaning the term
connotes a holder or receptacle or something that receives and
contains, with a capacity capable of being measured. We conclude
that by their design the air cargo pallets in issue are not
containers of the type described in the cited ENs. The issue of
whether they are specially designed and equipped for purposes of
heading 8609.00.00 is therefore moot.
HOLDING:
Under the authority of GRI 1, the SH 850 FF, MI 860 E2 and
NF series aluminum air cargo pallets are provided for as articles
of aluminum, in heading 7616. They are classifiable in
subheading 7616.90.00, HTSUS, as other articles of aluminum,
other, dutiable at the rate of 5.7 percent ad valorem.
EFFECT ON OTHER RULINGS:
NY 872558 addressed only the issue of whether knocked-down
aluminum pallets substantially similar to the ones here were
designed or equipped with fittings to facilitate handling and
securing on a transporting vehicle, aircraft or vessel, and thus,
were suitable for the door-to-door transport of goods without
intermediate repacking (i.e., heading 8609.00.00). However,
because the ruling confirmed classification of the pallets in
subheading 7616.90.00, HTSUS, NY 872558 is affirmed.
Sincerely,
John Durant, Director
Commercial Rulings Division