CLA-2 CO:R:C:M 951388 DWS
District Director
U.S. Customs Service
Patrick V. McNamara Building
477 Michigan Avenue
Detroit, MI 48266
RE: Protest No. 3801-91-103247; Steel Containers; HQ 088049;
Plus Computing Machines, Inc. v. U.S.; Explanatory Note
86.09; 8609.00.00
Dear Sir:
This is our response on Application for Further Review of
Protest No. 3801-1-103247, dated December 5, 1991, concerning
your action in classifying and assessing duty on steel containers
under the Harmonized Tariff Schedule of the United States
(HTSUS).
FACTS:
The merchandise consists of three types of steel containers.
The first type is the "CPC Quarter Basket" container, made of
heavy duty steel construction. It is approximately 54 inches in
length, 44 inches in width, and 23 1/4 inches in height. It has
horizontal tie down tubes at its bottom so that the container can
be tied down during transit and so that fork lifts can carry the
container after transit. The importer claims that the container
is manufactured to special dimensions in order to "cube out" a
tractor trailer or rail car. That term refers to the optimium
utilization of all the space within a trailer or rail car.
Additionally, the container has a collapsibility feature,
designed to reduce freight costs associated with the return of
empty containers.
The second type of container is the "Aerostar Instrument
Panel Rack", made of heavy duty steel construction. The
container is approximately 108 inches in length. It is also
manufactured in order to "cube out" a tractor trailer or rail
car. The container is equipped with looped runner guides which
the importer claims are designed for the purposes of securing it
to the mode of transport. These runner guides are also used by
forklifts to carry the container after transport.
The third type of container is the "Series 1000", also made
of heavy duty steel construction. It is also constructed to
special dimensions in order to "cube out" a tractor trailer or
rail car. The container is constructed with special tie down
legs designed for securing the container to the mode of
transport. The legs also are used to stack the containers on top
of one another and can be utilized for in-plant handling
purposes. The container possesses a collapsibility feature.
The importer claims that all of the containers are used
primarily to carry automobile parts. They are loaded with the
parts onto tractor trailers or rail cars in Canada, sent to
automobile plants in the U.S. where the automobile parts are
unloaded, and then the containers are sent back to Canada for
reuse. The purpose of the containers is to carry the parts to
the plants, where the parts are immediately used.
ISSUE:
What is the proper classification of the subject steel
containers 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 8609.00.00,
HTSUS, which provides for: "[c]ontainers specially designed and
equipped for carriage by one or more modes of transport."
However, the merchandise was liquidated under subheading
7326.90.90, HTSUS, which provides for: "[o]ther articles of iron
or steel: [o]ther: [o]ther: [o]ther: [o]ther."
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), HTSUS, states that:
These 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.
The containers are intended to be used repeatedly, they are
equipped with guides and runners to facilitate handling and
securing onto a transporting vehicle, and they are suitable for
the "door-to-door" transport of goods without intermediate
repacking. Although the containers are for the transportation of
articles, they can also be used for in-plant use. Therefore, the
primary question is whether the subject containers are "specially
designed and equipped for carriage by one or more modes of
transport".
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 three types of containers, they are
specially designed for carriage by a mode of transport. Even
though the containers can be used for in-plant storage, their
principal use is for the transportation of articles from one
point to another. As the importer has noted, the containers do
possess particular features which adapt them for transport
carriage. The guides and runners facilitate the securing of the
containers to a mode of transport for stability while in transit,
the containers are manufactured in order to "cube out" a tractor
trailer or rail car, and the "CPC Quarter Basket" and the "Series
1000" possess collapsibility features employed when empty
containers are returned to Canada for reuse.
Therefore, we find that the containers are classifiable
under subheading 8609.00.00, HTSUS, which provides for:
"[c]ontainers (including containers for the transport of fluids)
specially designed and equipped for carriage by one or more modes
of transport."
HOLDING:
The containers are classifiable under subheading 8609.00.00,
HTSUS. The protest should be granted in full. 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
protests.
Sincerely,
John Durant, Director
Commercial Rulings Division