CLA-2 CO:R:C:G: 083363 DPS
Sidney N. Weiss, Esq.
757 Third Avenue
New York, New York 10017
RE: Classification of insulated wall and roof panels, and
insulated doors
Dear Mr. Weiss:
Your letter of November 17, 1988, on behalf of Multypanel
S.A. de CV (Multypanel), and Insulated Building Products, Inc.
(IBP), to our New York office, has been referred to this office
for a ruling on the tariff classification of insulated wall and
roof panels and insulated doors imported from Mexico under the
Harmonized Tariff Schedule of the United States Annotated
(HTSUSA).
FACTS:
The merchandise requiring HTSUSA classification consists of:
(a)insulated wall and roof panels; and (b) insulated doors. Each
of the items is constructed by injecting plastics materials
(polyurethane) between two sheets of galvanized steel. The rigid
polyurethane foam serves as insulation and fills the entire space
between the internal and external steel sheets. Both the doors
and the panels are used in various buildings requiring
insulation.
The importer asserts that these items should be classified
in subheading 3925.20.0000 as "Doors," subheading 3925.90.0000 as
"Builders' ware of plastics, other," or under subheading
3921.90.5050 as "Other plates," etc. of plastics. Our New York
office classified the merchandise under subheading 7308.90.9090
(File No. 834289).
This inquiry has been submitted to Headquarters for a proper
tariff classification.
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ISSUES:
Whether the insulated doors, roof panels and wall panels are
properly classifiable as builders' wares of plastics under
subheading 3925.20.0000, HTSUSA or 3925.90.0000, HTSUSA; as other
plates ...of plastics under subheading 3921.90.5050, HTSUSA; or
as structures and parts of structures of iron or steel under
subheading 7308.30.5000, HTSUSA and 7308.90.9090, HTSUSA.
LAW AND ANALYSIS:
The General Rules for the Interpretation of the Harmonized
System (GRI's) govern classification under the Harmonized Tariff
Schedule. According to GRI 1, the primary consideration in
determining whether merchandise should be classified in a heading
should be given to the language of the heading and to any
relevant chapter or section notes. Inasmuch as the articles in
question are constructed using two distinct materials, plastic
and steel, at least two headings apply to the insulated panels
and doors at issue in this case. The headings at issue in this
case include:
(a) 3925.20.0000, builders' ware of plastics, not
elsewhere specified or included: doors, windows
and their frames and thresholds for doors;
(b) 3925.90.0000, builders' ware of plastics, not
elsewhere specified or included: other;
(c) 3921.90.5050, other plates, sheets, film, foil
and strip of plastics, other;
(d) 7308.30.5000, structures (excluding prefabricated
buildings of heading 9406) and parts of structures
(for example,...roofs, roofing frameworks, doors
and windows and their frames and thresholds for
doors...) of iron or steel: doors, windows and
their frames and thresholds for doors: other;
(e) 7308.90.9090, sheet-metal roofing, siding, flooring
and roof drainage equipment...; other: other.
Because proper classification cannot be determined by applying
GRI 1 alone, reference to the subsequent GRI's is necessary.
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GRI 2 contains two clauses, the second of which pertains to
mixtures or combinations of a material or substance, and goods
consisting of two or more materials or substances. GRI 2(b)
further provides: "The classification of goods consisting of more
than one material or substance shall be according to the
principles of Rule 3." Because the insulated panels are
constructed of steel and plastics materials, each of which is
provided for separately in the HTSUSA (heading 7308 provides for
structures and parts of structures made of iron and steel,
heading 3925 provides for builders' ware of plastics, not
elsewhere specified or included), the principles of GRI 3 must
be applied to determine the proper classification of the
insulated doors and panels.
Pursuant to GRI 3(a), heading 3621 may be eliminated from
further consideration since it is less specific than either of
the other competing headings. According to 3(b), mixtures and
composite goods consisting of different materials, or made up of
different components, shall be classified as if they consisted of
the material or component which gives them their essential
character. The factor that determines the essential character of
an article varies amongst different types of articles. It may be
the nature of the material or component, its weight, value, bulk
or quantity, or its role in relation to the use of the goods.
The doors and panels at issue here consist of two galvanized
steel sheets and injected plastics materials. One steel sheet
serves as the external panel or door structure, the other serves
as the internal structure. Plastics materials are injected
between the two galvanized steel sheets thereby creating an
insulated panel or door.
The importer argues that the polyurethane core of the doors
and panels gives them their essential character, because it
comprises a larger part of the value of the items, and because
the product is bought and sold exclusively for its commercial
insulating qualities which the plastics materials provide.
We agree with the importer that these factors are to be
considered in determining essential character. However, they are
not dispositive of the issue. The role that the steel sheets
play in relation to the use of the insulated panels and doors on
or in buildings as walls, roof components and doors, strongly
suggests that the steel components give the panels their
essential character. The steel sheets provide the exterior and
interior walls of the structure. They also give the panels
their outward appearance. The injected plastic portion of the
panels and doors performs the subsidiary function of supporting
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the steel structures and providing insulation. Under these
facts, the steel components give the insulated panels and doors
their essential character.
Based on the facts presented in this case and the language
of headings 3925 and 7308, the appropriate heading for
classifying the insulated panels and doors is heading 7308.
To be classified in this heading, an article must: (1) be a
structure; and (2) be made of iron or steel. There are no
relevant section or chapter notes under chapter 73. The
Explanatory Notes to heading 7308 indicate that the heading
covers complete or incomplete metal structures, as well as parts
of structures. The Explanatory Note further provides, in
pertinent part:
For the purpose of this heading, these
structures are characterized by the fact that
once they are put in position, they generally
remain in that position. They are usually
made up from bars, rods, tubes, angles,
shapes, sections, sheets, plates, wide flats
including so-called universal plates, hoop,
strip, forgings or castings, by riveting,
bolting, welding, etc. Such structures
sometimes incorporate products of other
headings.....
The panels and doors at issue have some of the
characteristics described above. They are made of two galvanized
steel sheets which encase the injected polyurethane insulation.
Once the steel sheets are put together and injected with plastic,
the panels and doors make up the interior and exterior walls and
roofing components of the structure, thereby remaining in a fixed
position. Since the steel components give these panels their
essential character, they meet the requirement that they be made
of iron or steel.
HOLDING:
The insulated wall and roof panels are properly classified
as structures in heading 7308, subheading 7308.90.9090 and
subject to a duty rate of 5.7 percent ad valorem. The insulated
doors are properly classified in heading 7308, subheading
7308.30.5000 and subject to duty rate of 2.4 percent ad valorem.
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Articles from Mexico classified in heading 7308 are subject to
Voluntary Restraint Agreements (VRA's) which require the
procurement of an original valid Export Certificate to enter the
Commerce of the United States. Further information regarding
this requirement and its applicability to the insulated steel
doors, wall panels and roof panels classified above, is available
from the Office of Agreements Compliance, Department of Commerce,
14th and Constitution Avenue, N.W., Washington, D.C. 20230 (202)
377-4037.
Sincerely,
John Durant, Director
Commercial Rulings Division