CLA-2-44:OT:RR:NC:1:130
Ms. Sarah Figueroa
MS Industries
1101 Highview Drive
Webberville, MI 48892
RE: The tariff classification of wood and plastic crates
Dear Ms. Figueroa:
In your letter, dated May 24, 2018, you requested a binding classification ruling. The ruling was requested on crates of multiple constructions. Photographs and product information were submitted for our review.
The first of the crates is a collapsible wooden crate constructed of plywood sheet. Exact dimensions were not provided, but photos show a crate that appears to measure approximately one cubic meter. The crate sides are seated on a solid wooden platform with low sides. The platform base, like a pallet, is constructed on wood blocks to accommodate forklift blades. The crate has a solid lid. Two of the sides of the crate are constructed of continuous plywood sheets, while the remaining two sides are each constructed of two sheets of plywood joined by a strip of rubber that has been riveted in place. The corners of the crate also are joined by riveted rubber strips. Each of the rubber strips acts like a joint that allows the crate to be collapsed and folded flat. All of the components pack into the crate base when collapsed. A metal frame holds the top edges of the sides in place when the crate is assembled. You state that the crates are used for transporting automotive components.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level (for the 4 digit headings and the 6 digit subheadings) and facilitate classification under the Harmonized Tariff Schedule of the United States (HTSUS) by offering guidance in understanding the scope of the headings and the General Rules of Interpretation (GRIs). While neither legally binding nor dispositive of classification issues, the ENs provide commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. See T.D. 89-80, 54 Fed. Reg. 35127-28 (Aug. 23, 1989). You inquire as to whether the rubber joints render the crate sides to be other than “solid”, as described in heading 4415, HTSUS. We find that the ENs are instructive.
First, the ENs explain that articles of heading 4415 may be constructed of laminated wood, like plywood. They also provide that cases with solid sides, lids, and bottoms are to be used for general packing and transport purposes. The ENs appear to differentiate solid sides and bottoms from those made of spaced wooden slats. Also, the crates may be unassembled, provided all of the parts are present, and the crates may be “simply nailed or dovetailed or otherwise jointed.” All of these elements describe the instant crates. They are constructed of solid plywood sheet rather than spaced slats, are used for packing and transport, can be unassembled, and are otherwise jointed with rubber strips. Importantly, while the wood is not continuous due to the rubber joints, there are no open spaces in the sides, lid, or bottom when the crate is assembled. We therefore find all sides of the crate to be solid.
The applicable subheading for the wooden crates will be 4415.10.3000, HTSUS, which provides for Packing cases, boxes, crates, drums and similar packings, of wood; cable-drums, of wood; pallets, box-pallets and other load boards, of wood; pallet collars of wood: Cases, boxes, crates, drums and similar packings; cable-drums: Packing boxes and cases with solid sides, lids and bottoms. The rate of duty will be free.
The remaining crates are collapsible plastic crates. They are imported in multiple styles and sizes, and are shaped on their bottom sides to accommodate forklift blades. Based on the information provided, these reusable containers will be used to transport large quantities of automobile parts over long distances.
The applicable subheading for the plastic crates will be 3923.10.9000, HTSUS, which provides for Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics: Boxes, cases, crates and similar articles: Other. The general rate of duty will be 3 percent ad valorem.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Laurel Duvall at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division