CLA-2-73:OT:RR:NC:N5:117
Callum R. Smith
Customs Quote Brokerage Services
9-75 First Street, Suite 209
Orangeville, Canada L9W 5B6
RE: The tariff classification of a steel structure from Colombia
Dear Mr. Smith:
In your letter dated May 27, 2025, you requested a tariff classification ruling on behalf of your client,
Gonvarack US Inc.
The product under consideration is identified as a steel structure for an automated storage system. The steel
structure is comprised of pallet racking frames, main aisle beams, inner beams, and steel grating. All
components are shipped together unassembled and ready for installation after importation into the United
States.
In your request, you suggest that the pallet racking frames, main aisle beams, inner beams, and steel grating
are classifiable in Chapter 84 of the Harmonized Tariff Schedule of the United States (HTSUS). Within
Chapter 84, we infer from your comments that you believe the goods are classified in heading 8431, HTSUS,
as parts of a machine of heading 8428. We disagree. In understanding the language of the HTSUS, the
Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The
Explanatory Notes (ENs), although not dispositive nor legally binding, provide a commentary on the scope of
each heading of the HTSUS, and are the official interpretation of the Harmonized System at the international
level. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The ENs state that static structural
elements for the articles of heading 8428, HTSUS, when imported separately, are classifiable in heading
7308, HTSUS, if they are not fitted or designed to be fitted with the mechanical features essential for the
operation of the moving parts of the complete installation. Here, the subject components will form sections of
a racking structure for storing palletized goods and are not identifiable as parts of any machine. The structural
rack has no moving parts or mechanical features and remains stationary as a pallet shuttle moves through the
structure. Based on their construction, function, and condition as imported, the separately imported frames,
beams, and grating are not classified as parts of heading 8431, HTSUS.
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI’s). GRI
1 provides that the classification of goods shall be determined according to the terms of the headings of the
tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely
on the basis of GRI 1 and if the headings and legal notes do not otherwise require, the remaining GRIs may
then be applied. As stated in your submission, the structural components are shipped unassembled.
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 ENs to GRI 2(a) provide, in relevant part, that:
(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.
(VI) This Rule also applies to incomplete or unfinished articles presented unassembled or disassembled
provided that they are to be treated as complete or finished articles by virtue of the first part of this Rule.
The applicable subheading for the steel structural components, as described above, will be 7308.90.9590,
HTSUS, which provides for Structures (excluding prefabricated buildings of heading 9406) and parts of
structures (for example, bridges and bridge sections, lock gates, towers, lattice masts, roofs, roofing
frameworks, doors and windows and their frames and thresholds for doors, shutters, balustrades, pillars and
columns) of iron or steel; plates, rods, angles, shapes, sections, tubes and the like, prepared for use in
structures, of iron or steel: Other: Other: Other: Other: Other. The rate of duty will be free.
On March 12, 2025, Presidential proclamation 10896 imposed additional tariffs on certain derivative iron or
steel products. Additional duties for derivative iron or steel products of 25 percent are reflected in Chapter
99, headings 9903.81.89 and 9903.81.90. Products provided by heading 9903.81.91 will be subject to a duty
of 25 percent upon the value of the steel content. At the time of entry, you must report the Chapter 99
heading applicable to your product classification, i.e., 9903.81.90, in addition to subheading 7308.90.9590,
HTSUS. Derivative iron or steel products processed in another country from steel articles melted and poured
in the United States, provided for in heading 9903.81.92, are not subject to the additional ad valorem duties.
Please note that derivative steel products admitted to a U.S. foreign trade zone under “privileged foreign
status” before March 12, 2025, and entered for consumption on or after March 12, 2025, may be subject to
additional duties under heading 9903.81.93, HTSUS.
Effective April 5, 2025, Executive Orders implemented “Reciprocal Tariffs.” All imported merchandise must
be reported with either the Chapter 99 provision under which the reciprocal tariff applies or one of the
Chapter 99 provisions covering exceptions to the reciprocal tariffs. At this time products from all countries,
including Colombia, will be subject to an additional 10 percent ad valorem rate of duty. Your product falls
within an excepted subheading. At the time of entry, you must report the Chapter 99 heading applicable to
your product classification, i.e., 9903.01.33, in addition to subheading 7308.90.9590, HTSUS, listed above.
The tariffs and additional duties cited above are current as of this ruling’s issuance. 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.
The holding set forth above applies only to the specific factual situation and merchandise description as
identified in the ruling request. This position is clearly set forth in Title 19, Code of Federal Regulations
(CFR), Section 177.9(b)(1). This section states that a ruling letter is issued on the assumption that all of the
information furnished in the ruling letter, whether directly, by reference, or by implication, is accurate and
complete in every material respect. In the event that the facts are modified in any way, or if the goods do not
conform to these facts at time of importation, you should bring this to the attention of U.S. Customs and
Border Protection (CBP) and submit a request for a new ruling in accordance with 19 CFR 177.2.
Additionally, we note that the material facts described in the foregoing ruling may be subject to periodic
verification by CBP.
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 Denise Hopkins at [email protected].
Sincerely,
(for)
Steven A. Mack
Director
National Commodity Specialist Division