H324644

HQ H324644 July 21, 2022 CLA-2 OT:RR:CTF:EMAIN H324644 CATEGORY: Classification TARIFF NO.: 8609.00.00 Port Director Attn.: C. Willett (IS – Automotive & Aerospace CEE Team CBE) U.S. Customs and Border Protection Port of Minneapolis, MN 5600 W. American Blvd. Suite 760 Bloomington, MN 55437 RE: Application for Further Review of Protest No. 3501-22-102993; Tariff classification of collapsible metal containers Dear Port Director: The following is our decision regarding the Application for Further Review (AFR) of Protest Number 3501-22-102993, timely filed on March 9, 2022, by counsel on behalf of Boxwell LLC. (“Protestant” or “Boxwell”). This AFR concerns U.S. Customs and Border Protection’s (CBP) classification, under the Harmonized Tariff Schedule of the United States Annotated (HTSUSA), of certain collapsible storage containers. The protested merchandise, referred to as collapsible storage containers, relates to the classification of containers imported by Boxwell under entry number 923-4437971-1, dated November 5, 2021, and liquidated on March 4, 2022, under subheading 9406.90.0030, HTSUSA, as “Prefabricated buildings: Other: Of metal: Other”. Boxwell filed this Protest and AFR on March 9, 2022, asserting that the subject merchandise is properly classified under subheading 8609.00.0000, HTSUSA, which provides for “Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or modes of transport.” FACTS: The items under consideration are 12 collapsible metal storage containers. The containers are made of heavy-duty steel and are available in various sizes with the most common sizes being 16ft length x 8ft width x 8ft height and 20ft length x 8ft width x 8ft height. The 12 containers that were imported under the protested entry are the 20ft length model. The relocatable storage containers are used for onsite storage, portable storage, and long-distance transportation via truck, railroad, or ISO ocean container. These containers are intended to be reused and re-transported repeatedly. The container is designed to be handled for delivery and transport by a range of equipment including rollback trucks, trailers, cranes, and forklifts. The containers are equipped with fork pockets, comer castings, and tie down points to facilitate handling and securing to and from the transporting vehicle. The interior of the container also has tie down rings to secure household goods stored in the unit during transit. The container is designed to be collapsible to reduce transportation costs, and according to Protestant can be assembled in under 30 minutes. Once assembled, the container usually remains assembled for storage and transportation purposes, but it can easily be disassembled by removing the 24 nuts and bolts that hold the container together. The durable all-steel design is vented, weatherproof and pest-proof to ensure a long-life cycle for the container. The container is stackable 3-high fully loaded, with an interior design to accommodate various methods of cargo containment. The containers have a 15-to 20-year life cycle and are intended to be reused repeatedly. The primary use of the containers is to transport and store goods. Regardless of whether the containers are used for on site or portable storage, the containers are regularly picked up and transported, both when the containers are empty and when they are fully loaded. ISSUE: Whether the collapsible metal storage containers are containers for carriage of subheading 8609.00, HTSUS, or prefabricated buildings, of subheading 9406.90. HTSUS. LAW AND ANALYSIS: The protest was properly filed as a decision on classification under 19 U.S.C. § 1514(a)(2). The protest was timely filed within 180 days of liquidation of the entries. See 19 U.S.C. § 1514(c)(3). Further Review of Protest Number 5501-19-100295 was properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(c) because the decision against which the protest was filed involves matters previously ruled on by CBP, but the facts alleged or legal arguments presented in this protest were not considered at the time of the original ruling. Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). 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 2 through 6 may then be applied in order. GRI 6 provides that for legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. Further, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute 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. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The provisions under consideration are as follows: 8609.00 Containers (including containers for the transport of fluids) specially designed and equipped for carriage by one or more modes of transport. * * * 9406 Prefabricated buildings: 9406.90 Other Note 4 to Chapter 94, HTSUS, provides the following definition for “prefabricated buildings”: For the purposes of heading 9406, the expression “prefabricated buildings” means buildings which are finished in the factory or put up as elements, entered together, to be assembled on site, such as housing or worksite accommodation, offices, schools, shops, sheds, garages or similar buildings. The Protestant asserts that the products at issue meet the requirements of heading 8609, HTSUS, while heading 9406, HTSUS, is inapplicable to the merchandise at issue. In support of this, Protestant notes that the ENs to heading 8609 specify that the containers are: [P]acking receptacles specially designed and equipped for carriage by one or more modes of transport (e.g.. road, rail, water or air). They are equipped with fittings (hooks, rings, castors, supports. etc.) to facilitate handling and securing on the transporting vehicle.... They are thus suitable for the ‘door to door’ transport of goods without intermediate repacking and, being of robust construction. are intended to be used repeatedly. Protestant further states that the products at issue: are used for onsite storage, portable storage, and long-distance transportation via truck, railroad, or ISO ocean container (i.e., they are designed to contain items); are designed to be handled for delivery and transport by a range of equipment including rollback trucks, trailers, cranes, and forklifts, and have interior tie down rings to secure household goods in transit; are equipped with fork pockets, comer castings, and tie down points to facilitate handling and securing to and from the transporting vehicle; have a durable, all-steel design that ensures a 15- to 20-year life cycle; and are intended to be reused and re-transported repeatedly. Additionally, Protestant calls attention to the ENs to heading 9406, which further state that: This heading covers prefabricated buildings, also known as “industrialised buildings”, of all materials. These buildings, which can be designed for a variety of uses, such as housing, worksite accommodation. offices, schools. shops. sheds, garages and greenhouses, are generally presented in the form of: complete buildings, fully assembled, ready for use; complete buildings, unassembled: incomplete buildings, whether or not assembled, having the ess

The protest was properly filed as a decision on classification under 19 U.S.C. § 1514(a)(2). The protest was timely filed within 180 days of liquidation of the entries. See 19 U.S.C. § 1514(c)(3).Further Review of Protest Number 5501-19-100295 was properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(c) because the decision against which the protest was filed involves matters previously ruled on by CBP, but the facts alleged or legal arguments presented in this protest were not considered at the time of the original ruling. Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI). 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 2 through 6 may then be applied in order. GRI 6 provides that for legal purposes, the classification of goods in the subheadings of a heading shall be determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to the above rules, on the understanding that only subheadings at the same level are comparable. Further, the Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute 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. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The provisions under consideration are as follows:8609.00 Containers (including containers for the transport of fluids)specially designed and equipped for carriage by one or moremodes of transport. * * *9406 Prefabricated buildings: