CLA-2-73:OT:RR:NC:N1:113
Ms. Andrea Abraham
Meeks, Sheppard, Leo & Pillsbury LLP
570 Lexington Avenue, Suite 2405 New York, NY 10022
RE: The tariff classification of a Cable Protection System from the United Kingdom
Dear Ms. Abraham:
In your letter dated March 10, 2023, you requested a tariff classification ruling on behalf of your client, Jan de Nul US, LLC. Photographs, drawings, and product specifications were submitted with your ruling request for our review.
The product under consideration is identified as a Cable Protection System (CPS) to be used in an offshore wind power cable-laying operation. The CPS is a complete unassembled system at the time of importation into the United States. All of the components will be shipped on the same conveyance. You stated in your letter that “the CPS system is a hollow shell that will be assembled on the cable for the transition area where the laid cable will emerge from the seabed, at the wind tower location. A complete system incorporates approximately 1400 feet of the cast iron components, and 240 feet of principally plastic components for the final 240 feet from the seabed to the platform.” On site on the Cable Installation Vessel (CIV), the system will be pre-assembled (bolted) into 6 or 7 sections, which are then bolted to each other around the cable. The complete system will be installed at the site.
In condition as imported, the components that comprise the CPS include a polyurethane Progressive Stiffener that is the end that emerges from the water at the tower, a Latch Assembly comprised of a latch body made of malleable cast iron (90%) and latches made of carbon steel (10%), a polyurethane Dynamic Stiffener, a polyurethane Link Stiffener, cast iron Articulated Bend Restrictors (ABR) that are the bulk of the CPS, a cast iron Locking Knuckle that is the beginning of the CPS in the cable trench, and stainless steel bolts with nuts. As indicated in your submission, “The cast iron components comprising 70% of the length of the CPS are also referred to as an assembly of ABR. The ABR consist of cast iron half shells with a smooth interior and a tapered exterior. Each section is assembled around the submarine cable, over the end of the preceding section, using stainless steel bolts.” The principal protection for the cable is provided by the ABR which are made of malleable cast iron.
Classification of goods under the Harmonized Tariff Schedule of the United States (HTSUS) is governed by the General Rules of Interpretation (GRIs). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Merchandise that cannot be classified in accordance with GRI 1 is to be classified in accordance with subsequent GRI's taken in order. We note that the cast iron, steel and plastic components that comprise the complete CPS are imported unassembled in the same shipment. General Rule of Interpretation (GRI) 2(a) states as follows:
Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled.
Furthermore, the Explanatory Notes to the Harmonized Commodity Description and Coding System (ENs) represent the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-90, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The EN for GRI 2(a) states in “Rule 2(a) (Articles presented unassembled or disassembled) (V)”:
The second part of Rule 2 (a) provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport.
The CPS is a complete unassembled system that is comprised of cast iron, steel and plastic components that are classified in different headings. Since no one heading in the tariff schedules covers the components of the CPS in combination, GRI 1 cannot be used as a basis for classification. GRI 3(b) provides that mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale shall be classified as if they consisted of the material or component which gives them their essential character.
As the subject CPS is an unassembled composite good, we must apply rule GRI 3(b), which provides that composite goods are to be classified according to the component that gives the goods their essential character. EN VIII to GRI 3(b) explains that “the factor which determines essential character will vary as between different kinds of goods. It may, for example be determined by the nature of the material or component, its bulk, quantity, weight or the use of the goods.” We must determine whether the cast iron, the steel, or the plastic components impart the essential character to the subject merchandise. It is the role of the constituent materials or components in relation to the use of the good that imparts the essential character. In this case, the principal protection for the cable is provided by the ABR which are made of cast iron. We note that the cast iron and steel (metal components) in the CPS predominate by bulk and weight. Therefore, it is the opinion of this office that the metal imparts the essential character to the composite article. In accordance with GRI 3(b) the CPS will be classified as an other article of metal.
When classifying an article made of two different base metals, there is no determination of essential character. Regarding the classification of composite articles, Section XV Note 7 of the HTSUS states that “…articles of base metal containing two or more base metals are to be treated as articles of the base metal predominating by weight over each of the other metals.” The metal in the subject CPS that predominates by weight is cast iron. In accordance with Section XV Note 7 of the HTSUS, the CPS will be classified under heading 7325, HTSUS, which provides for other cast articles of iron or steel.
Heading 7325 covers a wide range of cast iron articles that are not more specifically provided for elsewhere in the tariff. Noting that the CPS under consideration is not more specifically provided for in any other heading of the tariff, the CPS will be classifiable under heading 7325, HTSUS.
The applicable subheading for the Cable Protection System (CPS) will be 7325.99.1000, HTSUS, which provides for other cast articles of iron or steel, other, other, of cast iron. The rate of duty will be free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs and Border Protection 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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division