CLA-2 CO:R:C:M 951326 DWS
District Director
U.S. Customs Service
300 Second Avenue, South
Great Falls, MT 59401
RE: Protest No. 3304-91-100006; Used Lead-Acid Storage Batteries;
Section XV, Note 6(a); GRI 3(c); 7802.00.00
Dear Sir:
This is our response on Application for Further Review of
Protest No. 3304-91-100006, dated March 22, 1991, concerning your
action in classifying and assessing duty on used lead-acid
storage batteries under the Harmonized Tariff Schedule of the
United States (HTSUS).
FACTS:
The merchandise consists of used lead-acid storage batteries
imported from Canada. At the time of importation, the batteries
were in a complete condition and stacked on pallets for shipping.
The importer states that the batteries were broken and, after
being imported into the United States, were sent to firms for the
recovery of metal.
ISSUE:
What is the proper classification of the lead-acid storage
batteries under the HTSUS?
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.
The merchandise was entered under subheading 7802.00.00,
HTSUS, which provides for: "[l]ead waste and scrap." However,
the merchandise was liquidated under subheading 8507.10.00,
HTSUS, which provides for: "[l]ead-acid storage batteries, of a
kind used for starting piston engines", or under subheading
8507.20.00, HTSUS, which provides for: "[o]ther lead-acid storage
batteries."
Section XV, note 6(a), HTSUS, defines "waste and scrap" as
"[m]etal waste and scrap from the manufacture or mechanical
working of metals, and metal goods definitely not usable as such
because of breakage, cutting-up, wear or other reasons."
For tariff classification purposes, it is our position that
the subject batteries, entered in a complete condition, are lead
waste and scrap as defined in section XV, note 6(a), HTSUS. We
also find that, as imported in a complete condition, the
merchandise consists of batteries. It is our position that
headings 7802 and 8507, HTSUS, are equally specific with regard
to the classification of the batteries.
Because headings 7802 and 8507, HTSUS, are equally specific,
we must consult GRI 3(c). It states that:
[w]hen goods cannot be classified by reference to 3(a) or
3(b), they shall be classified under the heading which
occurs last in numerical order among those which equally
merit consideration.
Consequently, under GRI 3(c), the batteries are classifiable
under heading 8507, HTSUS.
HOLDING:
The lead-acid storage batteries are classifiable either
under subheading 8507.10.00, HTSUS, or under subheading
8507.20.00, HTSUS, depending on their type.
The protest should be denied. A copy of this decision
should be attached to the Customs Form 19 and provided to the
protestant as part of the notice of action on the protest.
Sincerely,
John Durant, Director
Commercial Rulings Division