CLA-2 CO:R:CV:G 082708 VEA
Michael Melideo, President
Consolidated Fabricators Corp.
14620 Arminta Street
Van Nuys, California 91402
RE: Tariff Classification of Steel Containers imported from
Mexico
Dear Mr. Melideo:
This letter is in response to your inquiry dated August
15, 1988, requesting the proper tariff classification of steel
storage containers imported from Mexico, under the Harmonized
Tariff Schedule (HTS).
FACTS:
The merchandise in question consists of four steel
storage containers designed to hold scrap, garbage, tools and
equipment, and rubbish. The information submitted with the
request states that the containers were made from steel sheets
exported from the United States into Mexico under the
Maquiladora In-Bond Program. The steel sheets undergo a series
of manufacturing operations at Consolidated's plant in Mexico,
which transform them into containers. These operations include
forming the steel sheets into container parts and assembling
the container parts to form a garbage, rubbish or storage
container. The four containers at issue include a scrap metal
container, which has various stacking capabilities; a tilt
hopper dump design container; a storage body container used at
construction and other work sites to hold work tools and other
implements; and a roll off container (rubbish and scrap
container). The roll off container can be crane lifted or
winched drawn on to flatbed trucks.
- 2 -
This inquiry was submitted to Headquarters for a proper
tariff classification and a determination of whether the
merchandise is substantially transformed in Mexico. The latter
issue was answered in our ruling of March 14, 1989,
(File # 555111).
ISSUE:
Whether steel storage containers are properly classified
in heading 7309, HTS, as reservoirs, tanks, vats and similar
containers, or in heading 7326, HTS, as other articles of iron
or steel.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRI's) govern
classification under the Harmonized Tariff Schedule of the
United States (HTS). According to GRI 1, the primary
consideration in determining whether an article should be
classified in a particular heading should be given to the
language of the heading and to any relevant chapter or section
notes.
The headings at issue in this case include:
7309 Reservoirs, tanks, vats and similar containers
for any material (other than compressed or
liquefied gas), of iron or steel, of a capacity
exceeding 300 liters, whether or not lined or
heat insulated, but not fitted with mechanical
or thermal equipment.
* * * * * * *
7326 Other articles of iron or steel:
Pursuant to GRI 1, the containers in this case are
properly classifiable in heading 7309. To qualify for
classification in this heading, a container must first, be a
reservoir, tank, vat, or similar container used to store any
material and second, it must be made of iron or steel with a
capacity not exceeding 300 liters. The articles at issue in
this case, containers, are expressly provided for in heading
7309. They are designed to store materials (scrap, garbage,
tools and equipment, and rubbish) and are made of iron and
steel.
- 3 -
The Explanatory Notes, the official interpretation of
the HTS at the international level, although not legally
binding, provide some guidance on interpreting provisions under
the HTS. The Explanatory Notes for heading 7309 also confirm
that these containers should be classified in 7309. They
suggest that this heading was intended to apply to containers
designed to store both solids and liquids. The Explanatory
Notes state that 7309 covers containers for any material other
than compressed or liquefied gas. A list of the types of
containers classified in the heading include: petrol or oil
reservoirs; vats used in malt-houses for soaking barley;
fermentation vats for liquids (wine, beer, etc.), decanting or
clarifying vats for liquids of all kinds; vats for tempering
and annealing metal goods; water storage tanks; and containers
for solids.
Since classification in this case can be made based on
the language of heading 7309, it is unnecessary to look to
heading 7326.
Holding:
Steel storage containers are properly classified as
reservoirs, tanks, vats and similar containers in heading 7309,
subheading 7309.00.00.
Sincerely,
John Durant, Director
Commercial Rulings Divison