OT:RR:CTF:EMAIN H323869 NVF
Mr. Brian Kavanaugh
Deringer Logistics Consulting Group
173 West Service Road
Champlain, NY 12919
RE: Modification of NY N246928; Classification of StrapRail and RopeRail Systems
Dear Mr. Kavanaugh:
On November 14, 2013, we issued binding ruling letter New York (“NY”) N264928 to your client, Superchute Ltd. (“Superchute”). We have since reviewed NY N264928 and are modifying it in accordance with the reasoning below.
Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. §1625(c)(1)), as amended by section 623 of Title VI, notice proposing to revoke NY N264928 was published on September 6, 2023, in Volume 57, Number 32, of the Customs Bulletin. One comment was received in response to this Notice.
FACTS:
The StrapRail is described in NY N264928 as a portable web strap guardrail system imported as a complete unassembled article. The main purpose of the system is to prevent workers and objects from falling from elevated building levels. The system consists of three polyester straps that are anchored and tensioned by a ratchet mechanism and attached to either an aluminum post or to the building. The steel ratchet is a 4” ratchet used to tension the StrapRail system only. The ratchet is manually activated by cranking the gear and is left in place once the tension is applied. The system also contains strap buckles of drop forged steel, steel quick-links, steel posts, concrete anchor bolts, stainless steel labels for the posts, aluminum anti-deflection posts, nuts and bolts, washers, rivnuts, semi-tubular rivets, pop rivets, aluminum and plastic column posts, a polyester mesh netting and zip ties. The ratchets and buckles are sewn to the straps in their condition as imported. Depending on the customer’s preference, the StrapRail components can be shipped in a supplied zippered nylon duffel bag. The StrapRail system also contains a PVC post bag with a zipper to fit the posts, and a polyester pink pouch with a Velcro closure to fit the surplus installed strap.
The RopeRail system is also imported as a complete unassembled article. It contains 2 steel anchor posts, 4 intermediate steel posts, a steel wire rope assembly, a lever operated manual winch and a roll of polyethylene mesh netting. The difference between the RopeRail Tensioning system and the StrapRail Tensioning system is that the RopeRail Tensioning system uses a cam winch instead of a ratchet to tension the RopeRail wire. This is because the RopeRail is designed for longer spans. The cam winch can accept an infinite wire length and tension the slack out of the wire until the wire is stretched. Ratchets have a very small capacity drum and would quickly fill up before the wire is fully extended. The winch is manually activated by hand pumping the winch lever with the supplied pipe handle. The winch is left in place once the tension is applied. A RopeRail assembly consists of the pressed fittings such as swages and teardrop thimbles found on the end of the wire rope.
ISSUE:
Whether the StrapRail and RopeRail systems are classified under heading 8425, HTSUS as winches or under heading 8479, HTSUS as a mechanical appliance with individual functions not specified elsewhere.
LAW AND ANALYSIS:
The HTSUS provisions under consideration are as follows:
8425 Pulley tackle and hoists other than skip hoists; winches and capstans; jacks.
8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof.
Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
GRI 3(a) states that the heading that provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings refer to only part of the items in a composite good or set, those headings are to be regarded as equally specific in relation to the goods, even if one of the gives a more complete or precise description of the good. As such, they are regarded as equally specific and classification of the composite good or set is to be determined by GRI 3(b) or GRI 3(c).
GRI 3(b) states that composite goods or sets which cannot be classified by reference to GRI 3(a) are to be classified as if they consisted of the component that gives them their essential character. GRI 3(c) states that if goods cannot be classified pursuant to GRI 3(a) or (b), then they are classified under the heading which is last in numerical order among the headings which equally merit consideration.
In this case, the StrapRail and the RopeRail are both sets and therefore are classified pursuant to GRI 3(b) or 3(c). The StrapRail and the RopeRail are used as temporary railings on construction sites to prevent workers and objects from falling from open building levels. As such, the railing, regardless of material, must be appropriately tensioned in order to support the weight of a human being or objects used for or in construction. We find that the devices used to tension the railing impart the essential character of the instant sets. Specifically, the ratchet used to tension the webbing in the StrapRail and the winch used to tension the cable in the RopeRail impart the essential character of the sets.
We observe that there is a narrow category of machinery that utilizes a separate, winch type hand crank or electric drum to tension straps for various purposes. See HQ H031587 (Apr. 1, 2011). For example, in HQ H031587, we classified a device that mounts underneath the bed of a truck and consists of a steel plate and a hand-operated ratchet drum over which webbing or cable is wound under heading 8425, HTSUS, as a winch. This comported with the common meaning of the term “winch”, noting in particular the following:
The Oxford English Dictionary defines “winch” as “a hoisting or hauling apparatus consisting essentially of a horizontal drum round which a rope passes and a crank by which it is turned.” Webster’s College Dictionary defines a “winch” as “1. a crank with a handle for transmitting motion, as to a grindstone. 2. a machine for hoisting, lowering, or hauling, consisting of a drum or cylinder turned by a crank or motor; a rope or cable tied to the load is wound on the drum or cylinder.” The Web Sling & Tie Down Association, a trade group, defines a winch as “a tensioning device, which is mounted directly to a vehicle for tensioning synthetic web tie downs to secure cargo.” See http://www.wstda.com/ products/ wstda_winches_t-3.pdf.
The winch used in the RopeRail is similarly an independently housed tensioning device that operates on the same principles as the winch at issue in HQ H031587. It is therefore properly classified under heading 8425, HTSUS. Because the winch imparts the essential character of the RopeRail set, the RopeRail is classified in heading 8425, HTSUS as a winch.
By contrast, rachets used to tension straps are not “winches” for purposes of classification because they are not independently housed devices that consist of a drum or cylinder turned by a crank or motor. As such, they are not covered by heading 8425, HTSUS, and are properly classified under heading 8479, HTSUS, as machines having individual functions not specified elsewhere. HQ 089411 (June 20, 1991). Ratchets classified in heading 8479, HTSUS, contain a gear and pawl mechanism that holds the straps firmly in place and has a lever that provides the user with a mechanical advantage to tighten the straps beyond what could be achieved by merely pulling on them. The ratchets used in the StrapRail are substantially similar to the ratchets we have previously classified in heading 8479, HTSUS. Because the essential character of the StrapRail set is imparted by the ratchet, the StrapRail is classified in heading 8479, HTSUS as machines having individual functions not specified elsewhere.
The commenter argues that the StrapRail and RopeRail should be classified in the same heading because they both form a guardrail barrier by tensioning a wire rope or strap. The commenter further asserts that all strap ratchets perform the same function regardless of whether they use a ratchet or a winch. This argument misses the point, made above, that a classification analysis under GRI 3(b) focuses on which component imparts the essential character of a good. Because the straps and accompanying tensioning system are imported together, our analysis thus focuses on which component of each tensioning system imparts the essential character, not what they are used for. We acknowledge that both the StrapRail and the RopeRail are used to set up temporary rope/strap/wire barriers, however our analysis cannot end there because there is no HTSUS heading that provides for tensioning straps, and the two systems use different methods of tensioning with varying degrees of mechanical advantage.
In light of the foregoing, the StrapRail is classified under heading 8479, HTSUS as a machine having individual functions not specified or included elsewhere, and the RopeRail is classified under heading 8425, HTSUS as a winch.
HOLDING:
By application of GRIs 1, 3(b), and 6, the StrapRail system is classified under subheading 8479.89.95, HTSUS which provides for: Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Other: Other. The column one rate of duty is 2.5 percent ad valorem.
By application of GRIs 1, 3(b), and 6, the RopeRail system is classified under subheading 8425.39.01, HTSUS which provides for: Pulley tackle and hoists other than skip hoists; winches and capstans; jacks: Winches; capstans: Other.” The column one, general rate of duty is free.
Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at https://www.usitc.gov.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a Customs Service field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”
EFFECT ON OTHER RULINGS:
NY N246928, dated November 14, 2013, is MODIFIED.
In accordance with 19 U.S.C. § 1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Gregory Connor
for Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division