CLA-2 CO:R:C:M 088740 NLP
District Director
U.S. Customs Service
111 West Huron Street
Buffalo, New York 14202
RE: Protest and Request for Further Review 0901-90-825345, dated
July 14, 1989; Metal Floor Pan Racks
Dear District Director:
The following is our decision regarding the Protest and
Request for Further Review No. 0901-90-825345, dated July 14,
1989. At issue is the classification of metal floor pan racks.
FACTS:
The merchandise at issue is steel racks that are
rectangular-shaped. The racks are equipped with cups or pins on
the vertical pillars to permit stacking. In addition, the racks
have either two or four way forklift/tiedown channels or lifting
lugs to facilitate loading/unloading by a forklift in factory-
to-factory and in-factory movement by a forklift. Chains may be
run through the channels or lifting lugs as a means of bracing or
securing the containers on truck trailers or rail cars.
Upon importation the metal floor pan racks were classified
in subheading 7326.90.90, HTSUSA, which provides for other
articles of steel, other, other.
The Protestant argues that the metal floor pan racks are
properly classifiable in subheading 8609.00.00, HTSUSA, which
provides for containers (including containers for the transport
of fluids) specially designed and equipped for carriage by one or
more modes of transport. Protestant states that these containers
are not intended for in-plant storage but are specially designed
to facilitate plant-to-plant movements of various types of
components for the automobile industry. These shipping
containers are of substantial construction and are fitted with
loops and guides to facilitate handling and securing on the
transporting vehicle.
ISSUE:
Are the metal floor pan racks containers specially designed
and equipped as required for classification in Heading 8609,
HTSUSA.
LAW AND ANALYSIS:
The General Rules of Interpretation (GRIs) set forth the
manner in which merchandise is to be classified under the HTSUSA.
GRI 1 requires that classification be determined according to the
terms of the headings of the tariff and any relative section or
chapter notes and, unless otherwise required, according to the
remaining GRI's, taken in order.
Heading 8609, HTSUSA, provides for containers specially
designed and equipped for carriage by one or more modes of
transport. The Explanatory Notes provide the official
interpretation of the HTSUSA at the international level. The
Explanatory Notes to Heading 8609, HTSUSA, provide the following:
These containers are packing receptacles specially
designed and equipped for carriage by one or more modes of
transport (e.g., road, rail, water or air). They are
equipped with fittings (hooks, rings, castors, supports,
etc.) to facilitate handling and securing on the
transporting vehicle, aircraft or vessel. They are thus
suitable for the "door-to-door" transport of goods without
intermediate repacking and, being of robust construction,
are intended to be used repeatedly.
The more usual type, which may be of wood or metal,
consists of a large box equipped with doors, or with
removable sides.
In addition, the ENs state that Heading 8609, HTSUSA,
excludes cases, crates, etc., which though designed for the door-
to-door transport of goods are not specially constructed as
described above to be secured to the transporting vehicle,
aircraft or vessel (Emphasis added); these are classified
according to their constituent material.
While tariff provisions carrying a free rate are often given
a broad and liberal construction so as to carry out the apparent
intent of Congress, the class or kind of merchandise covered by
those provisions may not be expanded, under the guise of such a
liberal construction, beyond the plain meaning of the terms used.
The design of the forklift/tiedown channels and lifting lugs
on these containers makes then compatible for use with forklifts
and small factory-type work trucks. That the channels and lugs
may also serve as a means of chaining the racks to the trucks or
rail cars does not make them specially constructed to be secured
to the transporting vehicle. Therefore, it is our position that
the subject containers are not classifiable in Heading 8609,
HTSUSA.
HOLDING:
The metal floor pan racks are classifiable in subheading
7326.90.90, HTSUSA, which provides for other articles of iron and
steel, other, other. The rate of duty is 5.7 percent ad valorem.
The protest should be denied in full. A copy of this
decision should be attached to the Form 19 Notice of Action to be
sent to the Protestant.
Sincerely,
John Durant, Director
Commercial Rulings Division