CLA-2-73:OT:RR:NC:N5:433
Oscar Palacios
C.H. Robinson International
180 E. Ocean Blvd., Suite 700 Long Beach, CA 90802
RE: The tariff classification of filled and non-filled containers from China.
Dear Mr. Palacios:
In your letter dated December 6, 2023, you requested a binding tariff classification ruling on behalf of A-GAS US Inc. In lieu of samples, illustrative literature and product descriptions were provided.
Item 1, the “M0708 Cylinder-Filled,” is a steel container for the storage and transport of compressed or liquefied gases. The container valve and vessel components are non-refillable and non-reuseable. The container is constructed of 2 press-formed steel sheet shells that have a visible welded seam. The container specifications are 16.4” in height, 9.5” in diameter, a water capacity of 29.7lbs., 822” of cubic volume, and weighs approximately 9lbs. when empty. At the time of U.S. importation, the container will be filled with R410A refrigerant and will weigh approximately 34lbs.
Item 2, the “M0708 Cylinder-Empty,” is identical in materials, construction, and manufacture specifications to that of item 1. However, item 2 will be imported empty. Further, the documentation provided for items 1 and 2 states, “The cylinder is a DOT-39 approved disposable non-refillable container that incorporates two handles and utilizes the SD-1 non-refillable refrigerant liquid receiver valve.”
In your request, you suggested a classification for the filled cylinders of R410A under subheading 3827.63.0000 Harmonized Tariff Schedule of the United States (HTSUS). The ruling request also seeks confirmation if item 1 is considered packaging and therefore classifiable with the R410A refrigerant.
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level.
The ENs to Chapter 73, Heading 7311 states, “This heading covers containers of any capacity used for the transport or storage of compressed or liquefied gases (e.g., helium, oxygen, argon, hydrogen, acetylene, carbon dioxide or butane).
Some are strong cylinders, tubes, bottles, etc., tested at high pressure; these may be weldless or welded (e.g., at the bases, round the middle or along the length). Others consist of an inner vessel and one or more outer shells, the intervening space being packed with insulating material, maintained under vacuum or arranged to contain a cryogenic fluid, thus enabling certain liquefied gases to be kept at atmospheric pressure or low pressure.
These containers may be fitted with control, regulating and measuring devices such as valves, taps, pressure gauges, level indicators, etc.
Some (e.g., for acetylene) contain an inert porous substance such as kieselguhr, charcoal or asbestos, with a binder such as cement and sometimes impregnated with acetone, to facilitate filling and to prevent the risk of explosion if acetylene were compressed alone.
In others, such as those designed to supply liquid or gas as required, the liquefied gas is vapourised solely under the influence of the atmospheric temperature, by passing through a coil attached to the inner wall of the outer shell.”
General Rule of Interpretation (GRI) 5(b) states, “Subject to the provisions of rule 5(a) above, packing materials and packing containers entered with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision is not binding when such packing materials or packing containers are clearly suitable for repetitive use.”
In view of the facts, items 1 and 2 are for the storage and transport of compressed or liquefied gases. The containers are non-refillable, not suitable for repetitive use, and are of a kind normally used for the packing, storage, and transport of R410A refrigerant. For item 1, at the time of U.S. importation, the container and the R410A refrigerant are classified together.
The applicable subheading for item 1 will be 3827.63.0000, HTSUS, which provides for “Mixtures containing halogenated derivatives of methane, ethane or propane, not elsewhere specified or included: Containing other hydrofluorocarbons (HFCs) but not containing chlorofluorocarbons (CFCs) or hydrochlorofluorocarbons (HCFCs) Other, not included in the subheadings above, containing 40 percent or more by mass of pentafluoroethane (HFC-125).” The rate of duty will be 3.7 percent ad valorem.
The applicable subheading for item 2 will be 7311.00.0060, HTSUS, which provides for “Containers for compressed or liquefied gas, of iron or steel: Certified prior to exportation to have been made in accordance with the safety requirements of sections 178.36 through 178.68 of title 49 CFR or under a specific exemption to those requirements: Other.” The rate of duty will be free.
Section 301 Trade Remedy:
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheadings 3827.63.0000 and 7311.00.0060, 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 subheadings 3827.63.0000 and 7311.00.0060, 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, including information on exclusions and their effective dates, 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.
AD/CVD Applicability:
The merchandise in question may be subject to antidumping duties and countervailing duties (AD/CVD) for non-refillable steel cylinders from China (A570-126, C570-127). Written decisions regarding the scope of AD/CVD orders are issued by the Enforcement and Compliance office in the International Trade Administration of the Department of Commerce (ITA) and are separate from tariff classification and origin rulings issued by Customs and Border Protection (CBP). General information regarding the ITA and AD/CVD can be found at https://www.trade.gov/us-antidumping-and-countervailing-duties. The ITA’s “Guide on How to File for an Antidumping/Countervailing Duty Scope Ruling Request” is available at https://enforcement.trade.gov/scope/Request-Scope-Ruling.pdf
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.
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 of the information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and complete in every material respect. In the event that 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 Dharmendra Lilia at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division