CLA-2-73:OT:RR:NC:N1:113
Mr. Adam J. St. George
ZF North America, Inc.
15811 Centennial Drive
Northville, MI 48168
RE: The tariff classification of transport baskets from Germany
Dear Mr. St. George:
In your letter dated March 17, 2014, you requested a tariff classification ruling. Photographs of the baskets under consideration were submitted for our review.
The articles in question are described in your letter as transport baskets used for the internal movement of automotive parts within the manufacturing processes at ZF Transmissions. The subject baskets are identified as ZF part numbers AA01.094.186, AA01.094.190, AA00.830.284 and AA00.823.357. The transport baskets are made of steel and measure approximately 575 mm in length by 264 mm in width. The height will vary depending on the type of automotive part the basket is designed to transport. You indicated in your letter that “Formed wire inserts that are meant to hold a specific part in position as they travel between the manufacturing processes are also part of the internal structure of the basket. The transport baskets are moved within the plant via rolling dolly and placed onto a trolley that is pulled behind a tugger. Various transmission parts such as gear sets and output shafts are placed into a transport basket and moved to a machine where they will undergo a machining or assembly process. After the process is complete, the parts are placed back into the same transport basket and moved to another machine for the next process.”
Under the Harmonized Tariff Schedule of the United States (HTSUS), classification for legal purposes is determined according to the terms of the headings and any relative section or chapter notes. For purposes of Chapter 73, HTSUS, Legal Note 2 states that “[i]n this chapter the word ‘wire’ means hot or cold-formed products of any cross-sectional shape, of which no cross-sectional dimension exceeds 16 mm.”
Accordingly, transport baskets constructed of iron or steel wire that meet this definition are classifiable under the provision for other articles of iron or steel wire in subheading 7326.20.00. Transport baskets that do not meet the definition of wire in Note 2 to Chapter 73, HTSUS, are classifiable as other articles of iron or steel, other, in subheading 7326.90.85.
In our telephone conversation on March 24, 2014, you indicated that the baskets identified as part numbers AA01.094.186 and AA01.094.190 do not have a cross-sectional dimension that exceeds 16 mm. You also stated that the baskets identified as part numbers AA00.830.284 and AA00.823.357 each have a cross-sectional dimension that exceeds 16 mm. Therefore, part numbers AA01.094.186 and AA01.094.190 meet the definition of wire as defined in Legal Note 2 to Chapter 73 and are classifiable under the provision for other articles of iron or steel wire, in subheading 7326.20.00, HTSUS. However, part numbers AA00.830.284 and AA00.823.357 do not meet the definition of wire as defined in Legal Note 2 to Chapter 73 and are classifiable under the provision for other articles of iron or steel, other, in subheading 7326.90.85, HTSUS.
The applicable subheading for the transport baskets identified as part numbers AA01.094.186 and AA01.094.190 will be 7326.20.0071, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other articles of iron or steel, articles of iron or steel wire, other. The rate of duty will be 3.9 percent ad valorem.
The applicable subheading for the transport baskets identified as part numbers AA00.830.284 and AA00.823.357 will be 7326.90.8588, HTSUS, which provides for other articles of iron or steel, other, other, other, other, other. The duty rate will be 2.9 percent ad valorem.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Ann Taub at [email protected].
Sincerely,
Gwenn Klein Kirschner
Acting Director
National Commodity Specialist Division