CLA-2-73:OT:RR:NC:N5:113
Mr. Alec Zorich
Givens & Johnston, PLLC
950 Echo Lane, Suite 360 Houston, TX 77024
RE: The tariff classification of traction plates from China
Dear Mr. Zorich:
In your letter dated September 15, 2023, you requested a tariff classification ruling on behalf of your client, Matson Navigation Company, Inc. (Matson). Product descriptions and photographs of the traction plates were provided for our review.
The articles under consideration are identified as Main Deck Traction Plates that are intended for installation on the main deck of Matson's cargo barge, the Mauna Loa. The subject merchandise consists of eight made-to-specification design, non-alloy, flat-rolled traction plates, not in coils, hot-rolled and fabricated from steel. You stated in your letter that “The traction plates possess a non-slip surface via patterns in relief created subsequent to the normalizing rolling process. Specifically, each plate is further worked after the rolling process by welding 1/2" square stock arranged at approximately 12" intervals in a 90-degree chevron shape (V-Shape) to the base plate. After the square stock is welded to the base plates, plug weld holes are cut through the steel base to allow the traction plates to be welded down to and on top of the existing main deck of the vessel. Affixed to the plates, the square stock enhances traction, ensuring safer operations on the barge for the personnel and cargo. The traction plates serve a permanent anti-slip solution, specifically to ensure wheel traction during the container loading/unloading process.”
Six of the traction plates measure 1/2" x 8' x 20', with the square stock positioned evenly between the 19 rows and 7 columns of 2" plug weld holes, located on 12" centers. The remaining two plates measure 1/2" x 4' x 20' with the square stock evenly situated between the 19 rows and 3 columns of 2" plug weld holes, located on 12" centers. All traction plates are coated with a primer for corrosion resistance prior to departing the foundry.
You indicated that after importation into the United States, “The principal use of the traction plates is to be installed over the existing main deck of the Mauna Loa for operational safety purposes, being designed to provide enhanced grip and prevent slippage on the deck of a barge. The traction plates contribute significantly to the safety of operations on a barge, providing a stable surface that minimizes the risk of slipping during both dry and wet conditions. The plates solely serve anti-slip functionality. Once affixed to the barge's main deck, the traction plates remain in place and are not removed or re-installed.”
In your letter, you suggested the Main Deck Traction Plates are classified in subheading 7308.90.9530, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Structures (excluding prefabricated buildings of heading 9406) and parts of structures (for example, bridges and bridge sections, lock gates, towers, lattice masts, roofs, roofing frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and columns) of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in structures, of iron or steel: Other: Other: Sheet-metal roofing, siding, flooring and roof drainage equipment. We disagree. The traction plates are added to the structure solely for enhancing traction, and they do not form a necessary part of the structure. As such, the traction plates are precluded from classification under heading 7308, HTSUS.
Alternatively, you suggested the Main Deck Traction Plates could be classified in subheading 8302.49.6055, HTSUS, which provides for Base metal mountings, fittings and similar articles… For aircraft, vessels and other vehicles (except motor vehicles) of section XVII. We disagree. These articles are large steel traction plates that will be welded onto the deck of a barge to provide traction for the machinery used to load and unload containers. You state these plates are "designed as structural components of the vessel" and are "vital for the vessel's safe operation, providing necessary non-slip functionality for the vessel's flat deck to ensure safe movement of cargo and personnel." The Explanatory Notes for 83.02 state, "This heading covers general purpose classes of base metal accessory fittings and mountings…" (Emphasis added.) Because these plates serve a significant safety function it is our opinion that they are not accessory fittings as described in heading 8302, HTSUS.
The applicable subheading for the Main Deck Traction Plates will be 7326.90.8688, HTSUS, which provides for other articles of iron or steel, other, other…other. The rate of duty 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 at https://hts.usitc.gov/current.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7326.90.8688, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 7326.90.8688, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
The holding set forth above applies only to the specific factual situation and merchandise description as identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations (CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. If the facts are modified in any way, or if the goods do not conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2. Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic verification by CBP.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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, please contact National Import Specialist Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division