OT:RR:CTF:CPMM H250466 RGR
Mr. Dave Collins
Director, Commercial Operations
721 Logistics, LLC
300 Stevens Drive, Suite 105
Lester, PA 19113
RE: Revocation of NY N245635, HQ 958353, NY 811379, NY 811779, NY B86726, NY H80981, NY N063856, NY N156155, NY N156975; Tariff classification of articles of soapstone or steatite
Dear Mr. Collins:
This letter is in reference to one ruling letter issued by U.S. Customs and Border Protection (“CBP”) concerning the classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) of certain articles of soapstone or steatite under subheading 7116, HTSUS. Specifically, in New York Ruling Letter (“NY”) N245635, dated September 24, 2013, CBP classified certain soapstone whisky cubes in subheading 7116.20.40, HTSUS. We have reviewed NY N245635 and find it to be incorrect. For the reasons set forth below, we are revoking that ruling.
For the reasons set forth below, we are also revoking eight other rulings on substantially similar merchandise: Headquarters Ruling Letter (“HQ”) 958353, dated November 2, 1995; NY 811379, dated June 26, 1995; NY 811779, dated July 5, 1995; NY B86726, dated July 3, 1997; NY H80981, dated July 11, 2001; NY N063856, dated July 1, 2009; NY N156155, dated April 5, 2011; and NY N156975, dated April 5, 2011.
Pursuant to 19 U.S.C. § 1625(c)(1), a notice was published in the Customs Bulletin, Volume 52, No. 46 on November 14, 2018, proposing to revoke NY N245635, HQ 958353, NY 811379, NY 811779, NY B86726, NY H80981, NY N063856, NY N156155, and NY N156975, and any treatment accorded to substantially similar transactions. No comments were received in response to this notice.
FACTS:
In NY N245635, CBP described the merchandise as follows:
Whisky Rocks are soapstone cubes meant to be frozen and used instead of ice cubes to keep whisky, vodka and other spirits cold. Nine cubes are packaged per box. Unlike ice cubes, which melt, the soapstone cubes will not dilute the taste of drinks. Online advertising literature indicates that Scotch drinkers, who condemn drinking Scotch whisky with ice, can now enjoy their drink cold, without diluting it. These cubes are reusable, simply rinse with water, and re-freeze.
ISSUE:
Whether the subject soapstone articles are classifiable under heading 6802, HTSUS, as “worked monumental or building stone (except slate) and articles thereof” or under subheading 7116, HTSUS, as “articles of natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed).”
LAW AND ANALYSIS:
The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (“GRI”). GRI 1 provides, in part, that “for legal purposes, classification shall be determined according to terms of the headings 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 may then be applied in order.
The 2018 HTSUS provisions under consideration are as follows:
6802 Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 6801; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially colored granules, chippings and powder, of natural stone (including slate):
* * *
7116 Articles of natural or cultured pearls, precious or semiprecious stones (natural, synthetic or reconstructed):
* * *
Pursuant to note 1 of chapter 71, HTSUS, all articles consisting wholly or partly of semiprecious stones (natural, synthetic or reconstructed) are to be classified in chapter 71. Pursuant to note 1(d) of chapter 68, HTSUS, chapter 68 does not cover articles of chapter 71, HTSUS. Therefore, if articles of soapstone or steatite are provided for in heading 7116, or in any other heading of chapter 71, they cannot be classified in heading 6802, HTSUS.
According to note 2 of chapter 68, “‘worked monumental or building stone’ applies not only to the varieties of stone referred to in heading 2515 or 2516, but also to all other natural stone (for example, quartzite, flint, dolomite and steatite) similarly worked.”
In understanding the language of the HTSUS, the Explanatory Notes (“ENs”) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the Harmonized System at the international level. See T.D. 89-90, 54 Fed. Reg. 35127 (Aug. 23, 1989).
The ENs to heading 6802 state, in relevant part, that heading 6802 “covers stone which has been further processed than mere shaping into blocks, sheets or slabs by splitting, roughly cutting or squaring, or squaring by sawing (square or rectangular faces).” The ENs to heading 6802 also state that the heading covers:
(b) Stone of any shape (including, blocks, slabs or sheets) whether or not in the form of finished articles. . .dressed with the pick, bushing hammer, or chisel, etc., furrowed with the drag-comb, etc., planed, sand dressed, ground, polished, chamfered, moulded, turned, ornamental, carved, etc.
The heading therefore includes not only construction stone (including facing slabs) worked as above, but also articles such as steps, cornices, pediments, balustrades, corbels and supports; door or window frames and lintels; thresholds; mantelpieces; window sills; doorsteps; tombstones; boundary stones and milestones, bollards; panoramic indicators (enamelled or not); guard posts and fenders; sinks, troughs, fountain basins; balls for crushing mills; flower pots; columns, bases and capitals for columns; statues, statuettes, pedestals; high or low reliefs; crosses; figures of animals; bowls, vases, cups; cachou boxes; writing-sets; ashtrays; paper weights; artificial fruit and foliage, etc.. . .other ornamental goods essentially of stone are, in general, classified in this heading.
The EN to heading 71.03 states, in pertinent part, that the heading for precious and semi-precious stones excludes “Steatite (unworked, heading 25.26; worked, heading 68.02).” Steatite is a compact form of talc. The Merriam-Webster Dictionary defines “steatite” as “a massive talc having a grayish-green or brown color: soapstone.” Accordingly, the EN to heading 71.03 also excludes articles of soapstone.
The EN to heading 71.16 states, in pertinent part, the following:
This heading covers all articles (other than those excluded by Notes 2 (B) and 3 to this Chapter), wholly of natural or cultured pearls, precious or semi-precious stones, or consisting partly of natural or cultured pearls or precious or semi-precious stones, but not containing precious metals or metals clad with precious metal (except as minor constituents) (see Note 2 (B) to this Chapter).
Soapstone is a variety of natural steatite. Like Talc, it is a mineral substance rich in hydrous magnesium silicate. Its special properties make it suitable for various uses and as a building component in kitchens, laboratories, woodstoves, wall and floor tiles, molds for metal casting, ornamental carving and sculptures, and electrical panels, among other uses. It is not particularly rare or valuable. It is not listed among the gemstones for sale on various websites.
Prior to March 2012, the Annex to the ENs to chapter 71 listed soapstone and steatite as precious or semiprecious stone. Noting the discrepancy with the EN to heading 71.03 excluding steatite from the heading as a semi-precious stone in favor of heading 68.02 in accordance with note 2 to chapter 68, the Harmonized System Committee (“HSC”) deleted the terms “soapstone” and “steatite” from the Annex to the ENs to chapter 71 identifying precious or semiprecious stone. Accordingly, articles of soapstone or steatite are not specifically included in chapter 71 under note 1 to the chapter, or excluded from classification in chapter 68 under note 1(d) to that chapter. Furthermore, note 2 to chapter 68 specifically states that steatite stone is provided for as monumental building stone in the chapter. It follows, then, that an article of steatite is classified in heading 6802 under the legal terms and the EN thereto. This is the case even if the particular article is not being used as a building stone.
Since the soapstone whisky cubes in NY N245635 are articles of soapstone, we find that such merchandise, along with articles of soapstone or steatite in HQ 958353, NY 811379, NY 811779, NY B86726, NY H80981, NY N063856, NY N156155, and NY N156975 are classifiable in heading 6802, which provides for “Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 6801; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially colored granules, chippings and powder, of natural stone (including slate).” We further note that unlike the articles of soapstone or steatite in the above-mentioned rulings, the knife care kit containing an “Uchiko talc powder ball” in our recently issued ruling, HQ H293248, dated June 14, 2018, was classified in subheading 6815.99.20, HTSUS, as “[a]rticles of stone or of other mineral substances (including carbon fibers, articles of carbon fibers and articles of peat), not elsewhere specified or included: Other articles: Other: Talc, steatite and soapstone, cut or sawed, or in blanks, crayons, cubes, disks or other forms.” However, the articles at issue, which are made from carved stone, are distinguishable from the Uchiko powder ball, a textile filled with talc and other powder that does not resemble any of the exemplars in the ENs to heading 6802, HTSUS, such as “flower pots; columns, bases and capitals for columns; statues, statuettes, pedestals; high or low reliefs; crosses; figures of animals; bowls, vases, cups; cachou boxes; writing sets; ashtrays; paper weights; artificial fruit and foliage, etc. . . . [and] other ornamental goods.” Moreover, where the subject merchandise is not classifiable in heading 6815, HTSUS, under GRI 1, it cannot be classified in subheading 6815.99.20, HTSUS.
HOLDING:
Pursuant to GRIs 1 and 6, articles of soapstone or steatite are classified in heading 6802, HTSUS, specifically in subheading 6802.99.00, which provides for “Worked monumental or building stone (except slate) and articles thereof, other than goods of heading 6801; mosaic cubes and the like, of natural stone (including slate), whether or not on a backing; artificially colored granules, chippings and powder, of natural stone (including slate): Other: Other stone.” The 2018 column one, general rate of duty is 6.5% ad valorem.
EFFECT ON OTHER RULINGS:
NY N259445, dated September 24, 2013; HQ 958353, dated November 2, 1995; NY 811379, dated June 26, 1995; NY 811779, dated July 5, 1995; NY B86726, dated July 3, 1997; NY H80981, dated July 11, 2001; NY N063856 dated July 1, 2009; NY N156155, dated April 5, 2011; and NY N156975, dated April 5, 2011, are revoked.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division
Cc: Mr, Anuj Suri
Saimax
7737 Newhope West
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Mr. Rolf Fredner
Rolf Fredner, Inc.
63 Melrose Drive
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Ms. Joanne Balice
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Mr. Charles Parisi
Parisi Services, Inc.
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Ms. Kathleen Root
Barthco Trade Consultants
5101 South Broad Street
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Mr. Bruce Barshay
Atlantic City Bus Co.
7232 First Avenue
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Dave Collins
781 Logistics, LLC
300 Stevens Drive, Suite 105
Lester, PA 19113