CLA-2 CO:R:C:T 955033 ch
District Director
U.S. Customs Service
Post Office Box 1641
335 Merchant Street
Honolulu, Hawaii 96806
RE: Application for further review of Protest No. 3201-93-
100119 under 19 U.S.C., section 1514(c)(2);
classification of a boat cradle; GRI 5(b); packing
materials; not suitable for repetitive use.
Dear Sir:
The above-referenced protest was forwarded to this office
for further review. We have considered the protest and our
decision follows.
FACTS:
The subject merchandise is a boat cradle of wood (teak) used
to ship a 65 foot boat from Hong Kong to Honolulu. The boat was
classified under subheading 9804.00.35, Harmonized Tariff
Schedule of the United States Annotated (HTSUSA), which extends
duty Free treatment to boats entering the United States for
personal use. The cradle was classified separately as an article
of wood pursuant to subheading 4421.90.9540, HTSUSA. The
applicable rate of duty under this provision is 5.1 percent ad
valorem.
ISSUE:
Whether the boat cradle should be classified with the boat
as packing materials pursuant to General Rule of Interpretation
(GRI) 5(b)?
LAW AND ANALYSIS:
The wood boat cradle is classifiable as an article of wood
pursuant to Chapter 44, HTSUSA. However, GRI 5(b) provides that:
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.
Thus, if the boat cradle qualifies as "packing materials" as that
term is used in GRI 5(b), it shall be classified as part of the
vessel.
GRI 5(b) applies to packing materials which are "of a kind
normally used for packing" the goods with which they are entered
and are not "clearly suitable for repetitive use." Our National
Import Specialist for boats has confirmed the fact that boat
cradles are the usual packing for shipment of boats. However, as
boat cradles are generally suitable for substantial re-use we
classified the cradle separately at the time of entry.
Protestant argues that in this case the cradle is not
suitable for re-use. Although teak wood boat cradles may be used
to store boats on a seasonal basis, in this case it appears that
the cradle was designed specifically for a single ocean crossing.
The wood sustained water and other physical damage during
shipment and will be dismantled after entry into the United
States. Under these circumstances, we agree that the cradle is
not "clearly suitable for repetitive use." Accordingly, the
instant merchandise qualifies as "packing materials" pursuant to
GRI 5(b) and shall be classified with the boat with which it was
entered.
HOLDING:
Therefore, based on the foregoing discussion, this protest
should be granted in full. The boat cradle shall be classified
with the boat with which it was entered under subheading
9804.00.35, which provides inter alia for boats and the usual
equipment accompanying boats, imported in connection with the
arrival of such person and to be used in the United States only
for the transportation of such person, his family and guests, and
such incidental carriage of articles as may be appropriate to his
personal use of the conveyance. The applicable rate of duty is
Free. A copy of this decision should be attached to the CF 19
Notice of Action to satisfy the notice requirement of section
174.30(a), Customs Regulations.
In accordance with Section 3A(11)(b) of Customs Directive
099 3550-065, dated August 4, 1993, Subject: Revised Protest
Directive, this decision should be mailed by your office to the
protestant no later than 60 days from the date of this letter.
Any reliquidation of the entry in accordance with the decision
must be accomplished prior to mailing of the decision. Sixty
days from the date of the decision the Office of Regulations and
Rulings will take steps to make the decision available to Customs
personnel via the Customs Rulings Module in ACS and the public
via the Diskette Subscription Service, Lexis, Freedom of
Information Act and other public access channels.
Sincerely,
John A. Durant, Director