CLA-2-73:OT:RR:NC:N1:164
Scott Stafford
AIM Reusable Packaging
1408 Duffy St.
Watertown, WI 53094
RE: The tariff classification of steel shipping racks from Canada
Dear Mr. Stafford:
In your letter dated June 11, 2025, you requested a tariff classification ruling regarding steel shipping racks
on behalf of your client, Voestalpine Automotive Components. Technical information was submitted with
your request.
The items under consideration are described as two models of steel shipping racks from Canada. You state
that both racks will be used exclusively for transporting and staging automotive parts during the vehicle
assembly process at U.S. automotive manufacturing facilities. Additionally, you clarify that the racks will be
reusable, not permanently installed, and not intended for use as furniture. Both racks are welded fabrications
of powder coated carbon steel parts such as welded wire mesh, posts, and other base and frame components.
The model labeled “PC Rack” measures 180 15/16 inches in length by 35 1/8 inches in width by 59 1/8
inches in height. The model labeled “CFS Rack” measures 137 3/4 inches in length by 63 inches in width by
85 1/2 inches in height.
You suggest classification of the shipping racks in subheading 7308.90, Harmonized Tariff Schedule of the
United States (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. We disagree. Although the shipping racks are structural in nature, this
office finds that they are not akin to the structures described in heading 7308, HTSUS. These racks are used
to transport and stage automotive parts and are not permanent. As such, the subject racks are precluded from
classification in heading 7308, HTSUS.
Heading 7326, HTSUS, is a residual or basket provision which covers a wide range of iron or steel articles
that are not more specifically provided for elsewhere in the HTSUS. The Explanatory Notes to heading 7326
state that “This heading covers all iron or steel articles obtained by forging or punching, by cutting or
stamping or by other processes such as folding, assembling, welding, turning, milling or perforating other
than articles included in the preceding headings of this Chapter or covered by Note 1 to Section XV or
included in Chapter 82 or 83 or more specifically covered elsewhere in the Nomenclature.” An article of iron
or steel can be classified in heading 7326 if it is determined that the item is not more specifically provided for
in any other heading of the tariff. Noting that the steel shipping racks are not more specifically provided for
under heading 7308, or any other heading of the tariff, they can be classified under heading 7326, HTSUS.
The applicable subheading for the steel shipping racks will be 7326.90.8688, HTSUS, which provides for
Other articles of iron or steel: Other: Other: Other: Other: Other. The general rate of duty will be 2.9 percent
ad valorem.
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 50 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 50 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 7326.90.8688,
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
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 7326.90.8688, 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/.
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
(C.F.R.), 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 C.F.R. 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 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, please contact
National Import Specialist Paul Taylor at [email protected].
Sincerely,
(for)
James Forkan
Acting Director
National Commodity Specialist Division