CLA-2-73:OT:RR:NC:N1:113
Ms. Jean Wang
Sinobec Resources LLC
1901 Green Road, Bay E
Pompano Beach, Florida 33064
RE: The tariff classification of unassembled egress escape ladders from China
Dear Ms. Wang:
In your letter dated October 26, 2020, you requested a tariff classification ruling. Descriptions and photographs of the escape ladders were submitted with your ruling request for our review.
The products under consideration are identified as Galvanized Steel Basement Window Well Egress Escape Ladders that are imported in an unassembled condition. You indicated that the ladders are available with either three steps, four steps or five steps. Each ladder is comprised of a top side rail, a bottom side rail, a ladder rung, ladder rung safety tape, a carriage bolt, a wing nut and two self-tapping sheet metal screws. The components are packed together in a retail box and are ready to be assembled into a complete ladder at the time of importation.
The egress escape ladders are designed for use in all types of basement window wells with various depths. The three step ladder is used in window wells with a depth of 42” to 54”, the four step ladder with a well depth of 54” to 66”, and the five step ladder with a well depth of 66” to 84”. You stated in your letter that each ladder “is constructed of galvanized steel tubing and has a weight capacity of 300 lbs. It assembles without the use of tools and installs using only two self-tapping screws into the basement window well. Graspable tubular handrails and anti-slip tape on the stepping surface allow for a quick, safe and comfortable escape through the basement window well in the event of an emergency.”
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 components that comprise the escape ladder including the top side rail, a bottom side rail, a ladder rung, ladder rung safety tape, a carriage bolt, a wing nut and two self-tapping sheet metal screws are shipped unassembled in a cardboard box ready for retail sale. 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 applicable subheading for the Galvanized Steel Basement Window Well Egress Escape Ladders will be 7326.90.8688, HTSUS, which provides for other articles of iron or steel, other…other. The rate of duty will be 2.9 percent ad valorem.
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 on the World Wide Web at https://hts.usitc.gov/current.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 7326.90.8688, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 7326.90.8688, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the trade remedy initiated pursuant to Section 301 of the Trade Act of 1974, you may refer to the relevant parts of the USTR and CBP websites, which are available at https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions and https://www.cbp.gov/trade/remedies/301-certain-products-china, respectively.
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 Ann Taub at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division