CLA-2 OT: RR: CTF: TCM H044637 RM
Mr. Kevin Stewart
The I.C.E. Co., Inc.
P.O. Box 610583
Dallas/Ft. Worth Airport, TX 75261-0583
RE: Modification of New York Ruling Letter C89444, dated July 15, 1998; Classification of Metal Balusters
Dear Mr. Stewart:
This is in reference to New York Ruling Letter (“NY”) C89444, dated July 15, 1998, issued to you on behalf of Woodmark International Inc., concerning the tariff classification of metal balusters imported from China and of wooden balusters from Indonesia. In that ruling, U.S. Customs and Border Protection (“CBP”) classified the metal balusters under heading 7326, Harmonized Tariff Schedule of the United States (“HTSUS”), which provides for “Other articles of iron or steel.” We have reviewed NY C89444 and found this classification to be incorrect. It is now our position that the metal balusters are classified under heading 7308, HTSUS, which provides for “parts of structures … of iron or steel.” The classification of the wooden balusters is not affected by this decision.
Pursuant to section 625(c), Tariff Act of 1930 (19 U.S.C. §1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed modification was published in the Customs Bulletin, Volume 43, No. 2, on January 2, 2009. No comments were received in response to this notice.
FACTS:
In NY C89444, we described the subject merchandise as follows:
The metal baluster measures approximately 35 inches long and has a black coating. [It] is square and spiral shaped and has a hole at one end. The balusters will be used as the upright supports of a balustrade or staircase rail.
ISSUE:
What is the proper tariff classification of the metal balusters under the HTSUS?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The 2009 HTSUS provisions under consideration are as follows:
7308 Structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge sections, lock gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns) of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel:
Other articles of iron or steel:
Heading 7308, HTSUS, provides for “Structures … and parts of structures … of iron or steel.” The term “structure” is not defined in the tariff or in the legal notes. The Court examined the meaning of the term "structure" in S.G.B. Steel Scaffolding & Shoring Co., Inc. v. United States, 82 Cust. Ct. 197, 211 (Cust. Ct. 1979) and determined that "there is no precise definition of the term ‘structure,’” but noted that the common meaning of tariff descriptions lacking precise definitions has frequently been applied by the courts. When a tariff term is not defined by the HTSUS or the legislative history, its correct meaning is its common, or commercial, meaning. See Rocknel Fastener, Inc. v. United States, 267 F.3d 1354, 1356 (Fed. Cir. 2001). "To ascertain the common meaning of a term, a court may consult 'dictionaries, scientific authorities, and other reliable information sources' and 'lexicographic and other materials.'" Id. (quoting C.J. Tower & Sons of Buffalo, Inc. v. United States, 673 F.2d 1268, 1271, 69 Cust. Ct. 128 (Cust. Ct. 1982); Simod Am. Corp. v. United States, 872 F.2d 1572, 1576 (Fed. Cir. 1989)). In addition, the Explanatory Notes of the Harmonized Commodity Description and Coding System (“ENs”) while not binding law, offer guidance as to how tariff terms are to be interpreted. See Len-Ron Mfg. Co. v. United States, 334 F.3d 1304, 1309 (Fed. Cir. 2003) (noting that Explanatory Notes are "intended to clarify the scope of HTSUS subheadings and to offer guidance in their interpretation").
In Headquarters Ruling Letter (“HQ”) 967415, dated August 1, 2005, CBP drew from the following dictionary sources to define the term “structure”:
www.dictionary.com:
Something made up of a number of parts that are held or put together in a particular way: hierarchical social structure. The way in which parts are arranged or put together to form a whole; makeup: triangular in structure. The interrelation or arrangement of parts in a complex entity: political structure; plot structure. Something constructed, such as a building.
The American Heritage Dictionary of the English Language, (4th Ed. 2000):
1. Something made up of a number of parts that are held or put together in a particular way: hierarchical social structure. 2. The way in which parts are arranged.
Merriam-Webster’s Dictionary Online, available at www.m-w.com:
1. Something built as a dwelling, shelter, or place for human activity the only structure on the island is an old Spanish fort--or what's left of. 2. Something put together by arranging or connecting an array of parts the Egyptian pyramids are among the most remarkable structures ever built the arrangement of parts that gives something its basic form the basic structure of all those tract houses is the same: basically, a box.
Based on these definitions, we determined that a “structure” is “a complex system consisting of a number of different parts or sections.” In addition, EN 73.08 explains that:
Structures are characterized by the fact that once they are put in position, they generally remain in that position. They are usually made up from bars, rods, tubes, angles, shapes, sections, sheets, plates, wide flats including so called universal plates, hoop, strip, forgings or castings, by riveting, bolting, wielding, etc.
Balustrades are structures because they are complex systems consisting of a number of parts or sections (bars riveted or bolted to a rail) that once put in position, generally remain in position. See EN 73.08. It follows that the metal balusters at issue, which are used as the upright supports of a balustrade, are parts of those structures and are thereby classified as such in heading 7308, HTSUS.
HOLDING:
In accordance with GRI 1, the metal balusters are classified under heading 7308, specifically in subheading 7308.90.95, HTSUS, which provides for: "Structures ... and parts of structures (for example ... balustrades ...) of iron or steel; ...: Other: Other: Other." The 2009 column one, general rate of duty is: Free.
Duty rates are provided for convenience only and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY C89444, dated July 15, 1998, is modified as it relates to the classification of the metal balusters from China. The classification of the wooden balusters from Indonesia is unchanged.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division