CLA-2 CO:R:C:M 954927 DWS
Mr. Michael J. Buckley
Panalpina Inc.
P.O. Box 45405
Atlanta, GA 30320
RE: Pancake Containers; Magnetic Tape Reels; Explanatory Note
86.09; Plus Computing Machines, Inc. v. U.S.; HQ 951388;
7326.90.90
Dear Mr. Buckley:
This is in response to your letters of June 22 and August 9,
1993, on behalf of IBSM Mehiretter GMBH, to the District Director,
Savannah, Georgia, concerning the classification of pancake
containers under the Harmonized Tariff Schedule of the United
States (HTSUS). Your letters have been referred to this office for
a response.
FACTS:
The merchandise consists of pancake containers designed to
hold magnetic tape reels, otherwise known as pancakes. Each
container is a sectional steel structure with a sheet metal casing
and holds approximately 232 pancakes. The containers can be dust-
proof sealed from the front with metal doors. The inside of the
containers is equipped with four parallel horizontal shafts for
carrying the pancakes. The frame of the containers is equipped
with holes at the bottom and pins at the top for stacking during
transportation. The containers also possess lifting channels to
facilitate use by a forklift truck. These channels can also be
used for tie-down purposes during transportation. It is claimed
that the containers are exclusively designed for transportation
purposes.
The subheadings under consideration are as follows:
7326.90.90: [o]ther articles of iron or steel: [o]ther:
[o]ther: [o]ther: [o]ther.
The general, column one rate of duty is 5.7 percent ad
valorem.
8609.00.00: [c]ontainers (including containers for the
transport of fluids) specially designed and
equipped for carriage by one or more modes of
transport.
Goods classifiable under this provision receive duty-free
treatment.
ISSUE:
Whether the pancake containers are classifiable under
subheading 7326.90.90, HTSUS, as other articles of steel, or under
subheading 8609.00.00, HTSUS, as containers specially designed and
equipped for carriage by one or more modes of transport.
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance
with the General Rules of Interpretation (GRI's), taken in order.
GRI 1 provides that classification is determined according to the
terms of the headings and any relative section or chapter notes.
In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System Explanatory Notes may be
utilized. The Explanatory Notes, although not dispositive, are to
be used to determine the proper interpretation of the HTSUS. 54
Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory
Note 86.09 (pp. 1421, 1422) states that:
[t]hese containers (including lift vans) 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 heading excludes:
(a) 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; these are
classified according to their constituent material.
In Plus Computing Machines, Inc. v. U.S., 44 CCPA 160, 167,
C.A.D. 655 (1957), the term "specially constructed" was addressed.
It was stated:
[t]he statement that an article is specially constructed
for a particular purpose means merely that it includes
particular features which adapt it for that purpose. The
purpose in question need not be the sole one served by the
article and may not even be the principal one. Thus snow-
tread tires are specially constructed for driving in snow
even though, in practice, they may seldom be used for that
purpose; and armored trucks are specially constructed to
give protection against bullets, even though they may never
be fired upon.
It is our position that, from all the evidence provided by the
importer as to the purpose of the pancake containers, they are
specially designed for carriage by a mode of transport. Even if
the containers can be used for in-plant storage, their principal
use is for the transportation of goods from one point to another.
As the importer has noted, the containers do possess particular
features which adapt them for transport carriage. The channels and
stacking pins facilitate the securing of the containers to a mode
of transport for stability while in transit, and the containers are
suitable for the "door-to-door" transport of goods without
intermediate repacking. See HQ 951388, dated September 29, 1992.
Therefore, we find that the pancake containers are
classifiable under subheading 8609.00.00, HTSUS.
HOLDING:
Under the authority of GRI 1, the pancake containers are
classifiable under subheading 8609.00.00, HTSUS, as containers
specially designed and equipped for carriage by one or more modes
of transport.
Sincerely,
John Durant, Director