CLA-2-44:OT:RR:NC:N1:130
Mr. Ken Skillman
UFP International
5200 Highway 138
Union City, GA 30291
RE: The tariff classification of wood pallet collars from Latvia
Dear Mr. Skillman:
In your letter, dated April 18, 2023, you requested a binding classification ruling. The ruling was requested on wood pallet collars. Product information and pictures were submitted for our review.
The products under consideration are wood pallet collars. The pallets collars are constructed of four pine (pinus sylvestris) lumber boards connected at the corners with metal hinges. The pallet collars stack atop a pallet, connecting by the hinge hardware, to form a bin. The hinges allow the pallet collars to collapse for ease of transport or storage. You state that the pallets collars may be used for harvesting fruits and vegetables, or may be used for shipping other items like heavy equipment parts.
The term “pallet collars” is defined in the Explanatory Notes to the Harmonized System (ENs) for heading 4415, Harmonized Tariff Schedule of the United States (HTSUS), “Pallet collars are collars made up of four pieces of wood, usually with hinges on the ends to form a frame that is placed over the pallet itself”. This definition describes the instant product. Pallet collars are specifically provided for in heading 4415 of the HTSUS, and the pallet collars are classified in that heading in accordance with General Rule of Interpretation 1.
In your letter, you suggest that the pallet collars are used for harvesting fruits and vegetables and, therefore, may be classifiable in 4415.20.4000, HTSUS, which provides for Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums, of wood; pallets, box-pallets and other load boards, of wood; pallet collars of wood: Pallets, box-pallets and other load boards; pallet collars: Containers designed for use in the harvesting of fruits and vegetables. We disagree.
Customs Headquarters ruling HQ 082579, dated April 10, 1989, defines harvesting containers as “containers wholly or in chief value of wood designed for use in the harvesting of fruits and vegetables.” There is no physical indication that the pallet collars were designed specifically for use in harvesting, that is, the actual collection of fruit in the field and transportation to processing plants. In fact, you specifically note in your ruling request that the pallet collars “may be used for shipping other items, like heavy equipment parts.” Therefore, the pallet collars cannot be classified as containers designed for use in the harvesting of fruits and vegetables.
The applicable subheading for pallet collars will be 4415.20.8000, HTSUS, which provides for Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums, of wood; pallets, box-pallets and other load boards, of wood; pallet collars of wood: Pallets, box-pallets and other load boards; pallet collars: Other (than containers designed for use in the harvesting of fruits and vegetables). The rate of duty will be 10.7 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 the World Wide Web at https://hts.usitc.gov/current.
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 Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division