CLA-2-73:OT:RR:NC:N5:433
Dennis Steinherz
Helium 24 USA LLC
PO Box 37148 Houston, TX 77237
RE: The tariff classification of a container from Germany or China.
Dear Mr. Steinherz:
In your letter dated September 24, 2024, you requested a tariff classification ruling. In lieu of samples, technical and illustrative literature, a product description, and manufacturing processes were provided.
The “Steel UN Portable Tank,” is a stainless steel, aluminum, and carbon steel cylindrical container. The container’s working pressure is 175 psi and the volume capacity is 11,000 gallons. The cylindrical shape container extends the full length of a 40’ ISO container frame. The container dimensions approximate 40’ in length, 8’ in width, and 8’ 9” in height. In the condition at the time of U.S. importation, the container will be welded, assembled, and ready to use. Documentation provided states, “[T]his ISO container is specifically designed for multimodal transport, allowing seamless transitions between road, rail, water, or air without the need for intermediate repacking. It is built for durability and repeated use, equipped with hooks, rings, and supports for secure attachment to various transport vehicles.” Further, “[K]ey features include two opening cabinets: one for loading/unloading gas and another for safety purposes, both equipped with fittings, valves, and membranes.” The container will be manufactured in Germany or China. Additionally, “[T]hey will be certified under international certification requirements in Germany and/or China accordingly (depending on the place of origin of every manufactured unit), not under the safety requirements of sections 178.36 through 178.68 of Title 49 CFR.”
The ruling request seeks classification of the subject merchandise in heading 7311 or 8609 Harmonized Tariff Schedule (HTS). Heading 7311 HTS provides for “Containers for compressed or liquefied gas, of iron or steel.” Heading 8609 HTS provides for “Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or modes of transport.” Heading 8609 HTS do not describe the tank in its entirety.
The Harmonized Commodity Description and Coding System Explanatory Notes (“ENs”) constitute the official interpretation of the Harmonized System at the international level.
Chapter 73, HTS, provides for “Articles of Iron or Steel.” The stainless steel, aluminum, and carbon steel material construction of the container is within the construct of Chapter 73 HTS.
Chapter 73, heading 7311 provides for “Containers for compressed or liquefied gas, of iron or steel.”
EN III to General Rule of Interpretation (GRI) 1 states, “the second part of this Rule provides that classification shall be determined:
(a) according to the terms of the headings and any relative Section or Chapter Notes, and
(b) where appropriate, provided the headings or Notes do not otherwise require, according to the provisions of Rule 2, 3, 4, and 5.”
The “Steel UN Portable Tank” is a container for liquefied gas and the material construction is steel; the terms of the heading are satisfied.
Further, the ENs to Heading 7311 HTS, provides, “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.”
The “Steel UN Portable Tank” is for the transport or storage of helium refrigerated liquid, gas, and other materials. The tank is fitted with fittings, valves, and membranes, will allow for loading and unloading of materials, and is designed and equipped with hooks, rings, and supports for the secure attachment of multimodal transport (road, rail, water, air). In view of these facts, the container is within the construct of the ENs to heading 7311 HTS.
The applicable subheading for the subject merchandise that is not certified prior to exportation to be manufactured in accordance with the safety requirements of 49 CFR 178.36 through 178.68 will be 7311.00.0090 Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Containers for compressed or liquefied gas, of iron or steel: 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 subheading 7311.00.0090 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 7311.00.0090, 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.
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/.
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